E-commerce is the process of selling goods and services through the internet. Customers use electronic payments to acquire things from the website or online marketplace. The merchant sends the goods or offers the service after receiving the payment. Electronic commerce has been since the early 1990s, when Amazon only sold books. But it is now a multi billion-dollar sector which grew even more during the epidemic. E-commerce expenditure reached $347.26 billion in the first half of 2020, increasing 30% year over year. According to Digital Commerce 360’s analysis of US Department of Commerce statistics.
During the COVID-19 epidemic, selling products and services via the internet took new significance. The company owners and customers had little alternative but to adopt e-commerce. Everyone will remember 2021 as the watershed moment for the online marketplace and consumers.
Following the initial lockout on March 24, 2020, the number of Nepali e-commerce consumers began to increase. The individuals were forced to stay at home during the second lock down. Due to this, increasing number of people began purchasing online. Despite the fact that the markets opened after stay-at-home orders were removed in September, e-retailers were able to keep their clients and their company did not diminish.
Multiple causes, such as the expanding acceptance of social commerce, faster and more timely delivery, and the rising usage of digital payment with increased internet access, are supporting the expansion. In mid-October and mid-November this year, digital payments more than quadrupled compared to the same period last year. This owed to a rise in the number of individuals who have adopted online payment.
According to Nepal Rastra Bank, internet transactions totaled Rs4.93 trillion between mid-October. And mid-November 2021, up from Rs2 trillion in the same period previous year. During the study period, the number of transactions increased to 48.66 million, up from 34 million the previous year. Since March 2020, electronic payments have grown in fame, with online banking, mobile banking, e-wallet, and QR-based payments. This gained acceptance among clients.
Banks are supporting digital payment because it improves efficiency, lowers transaction costs, and boosts transparency. The cost of inter bank fund transfers falls. It also saves money on paper printing costs. According to the central bank, it will also assist in bringing transactions within the tax system
As of mid-November this year, internet penetration has risen to 116.91 percent, up from 80 percent at the same time in 2020. Consumer electronic products, fashion and accessories, and wellness are the primary categories driving e-commerce development. This too follows by fast moving consumer goods, personal care, and supermarket items. In the year 2021, e-commerce firms such as Daraz and Sastodeal expanded by 100% in terms of volume and value.
Online shopping’s appeal is not restricted to the Kathmandu Valley. Nepal’s largest e-commerce businesses, such as Daraz and Sastodeal, have increased demand from all across the nation.
