Ecommerce Daraz Final Report PDF

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TRIBHUVAN UNIVERSITYINSTITUTE OF MANAGEMENT STUDIESMAITHIGHAR, KATHMANDUA REPORTONONLINE SHOPPING IN NEPAL:DARAZ.COMSubmitted By:Sareena Bista (19844/17) Shishir Dhakal (19845/17) Shital Sapkota (19846/17) Sushovit Karki (19847/17) Utsav Keshari Shah (19849/17)Submitted To:Mr. Roshan Bhusal(In parti...

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TRIBHUVAN UNIVERSITY INSTITUTE OF MANAGEMENT STUDIES MAITHIGHAR, KATHMANDU

A REPORT ON ONLINE SHOPPING IN NEPAL: DARAZ.COM.NP

Submitted By: Sareena Bista (19844/17) Shishir Dhakal (19845/17) Shital Sapkota (19846/17) Sushovit Karki (19847/17) Utsav Keshari Shah (19849/17)

Submitted To: Mr. Roshan Bhusal

(In partial fulfillment of the requirements for the Course E-Commerce 2019) March, 2019

ACKNOWLEDGEMENT

This report entitled ‘Website Review of the Daraz.com.np ’ has been an output of dedication and efforts for the partial fulfillment of the requirements of internal evaluation for the degree Bachelor of Business Administration. However, it wouldn’t have been possible without the kind support and help of many individuals. Therefore we would like to acknowledge with gratitude to all of them. We wish to express our deep sense gratitude towards faculty of E-commerce Mr. Roshan Bhusal for giving me the responsibility to prepare this report along with his guidance, valuable advice, support, and inspiration. Our thanks also go to our colleagues and well-wishers for their valuable comments, understandings, and encouragement when it was required. We’ve put in our all possible strength to make this report error free and as good as it can be within the limited time frame, however there might be some mistakes done in course we apologize for any mistakes (if found) and look for any sort of comments, criticisms which will help us generate better reports in the days to come. We express gratitude to other faculty members of IMS college, Thapathali for their intellectual support throughout the course of this report.

DECLARATION We the Research team declare that the work presented in the form of report entitled “Online shopping in Nepal: Daraz.com.np ” submitted to department of IT , IMS College. This is our original work done in the form of partial fulfillment of requirement of BBA program ecommerce course of Sixth semester under the supervision of Mr. Roshan Bhusal, Institute Of Management Studies.

Date:

Research Team BBA program, 6th semester IMS College

RECOMMENDATION

This is to certify that Sareena Bista, Shishir Dhakal, Sushovit Karki, Shital Sapkota and Utsav Keshari Shah has completed this dissertation work entitled “Report on online shopping in Nepal: Daraz.com.np” as a partial fulfillment of requirement for the course E-commerce under our supervision. The report has been presented in the prescribed format of department of Ecommerce. This report is forwarded for evaluation.

......................... Mr.Roshan Bhusal (Department of Ecommerce ) IMS College

Approval SHEET

This is to certify that the report entitled ‘Website Review of the Daraz.com.np’ is an academic work done by Sareena Bista, Shishir Dhakal, Shital Sapkota, Sushovit Karki and Utsav Keshari Shah, submitted for the partial fulfillment of the requirements of internal evaluation for the degree of Bachelor of Business Administration at IMS college, affiliated to Faculty of Management, Tribhuvan University under the guidance and supervision of course instructor and College Management. To the best of our knowledge, the information presented by them in the project report has not been submitted earlier

………………………………

……………………………… Roshan Bhusal

BBA Program Coordinator

Faculty of Ecommerce

ABSTRACT

This report is based on the brief information on online shopping with the objectives and importance. This report, in an introductory phase encompasses a short description on online shopping in Nepal then highlights about website: Daraz.com along with its history, services and objectives. The project work sets light on prospects of Daraz.com, which contains of background of Daraz.com, short history of Daraz.com, infrastructure it employs for quicker customer service, delivery process, payment process, and business model it follows. Daraz.com as a popular online shopping site is also being exposed to growing competition and its likely challenges and threats on Daraz.com existence. Thus, this report attempts to explain the major plans and strategies Daraz.com adopts to maintain their position in the market, retain their customers, continuous effort for quality improvement.

Under the preparation of this report data were collected in two phases; one by telephoning the Daraz.com personnel and other secondary data and references.

In a whole, this report does a SWOT analysis of Daraz.com.np. Finally, the report highlighted some of the important aspects of online shopping in Nepal.

LISTS OF FIGURES

Figure 1: Sample picture of Daraz .com..........................................................................................6 Figure 2: Items available in Daraz...............................................................................................10 Figure 3: B2B model......................................................................................................................12 Figure 4: B2C model.....................................................................................................................13 Figure 5: Web design....................................................................................................................15 Figure 6: Category and convenience.............................................................................................16 Figure 7: Daraz Awareness...........................................................................................................20 Figure 8: Reasons of buying from Daraz.......................................................................................21 Figure 9: Products typically bought in Daraz...............................................................................21 Figure 10: Daraz fan overview in Nepal.......................................................................................22

Contents

CHAPTER 1....................................................................................................................................1 INTRODUCTION...........................................................................................................................1 1.1 Background of study..............................................................................................................1 1.1.1 E-commerce in Nepal.....................................................................................................2 1.1.2 Types of E-commerce.....................................................................................................3 1.2 Introduction to group members.............................................................................................4 1.3 Research Objectives...............................................................................................................4 1.4 Introduction to online shopping.............................................................................................5 1.5 Methodology of study............................................................................................................5 1.6 Limitations of study...............................................................................................................6 CHAPTER 2....................................................................................................................................7 Daraz an online ecommerce shopping.............................................................................................7 2.1 Features of Daraz...................................................................................................................8 2.2 Items available in Daraz.com..............................................................................................10 2.3 Buying and selling process..................................................................................................11 2.3.1 The buying process.......................................................................................................11 2.3.2 The selling process........................................................................................................12 2.4 Business Model....................................................................................................................13 2.4.1 B2B business model:....................................................................................................13 2.4.2 B2C business model:....................................................................................................14 2.5 Network Security and Firewall............................................................................................15

CHAPTER 3..................................................................................................................................16 ANALYSIS OF DARAZ.COM.....................................................................................................16 3.1 Website Analysis..................................................................................................................16 3.1.1 Website Design.............................................................................................................16 3.1.2 Site convenience...........................................................................................................17 3.1.3 Meta title.......................................................................................................................17 3.1.4 Meta description...........................................................................................................17 3.1.5 SEO...............................................................................................................................18 3.1.6 Graphics........................................................................................................................18 3.1.7 Reviewing and ratings..................................................................................................18 3.8 SWOT Analysis of Daraz.com.............................................................................................19 3.9 Presentation and analysis of data.........................................................................................21 3.9.1Primary data presentation and analysis..........................................................................21 3.9.2 Secondary Data Presentation and Analysis...................................................................23 CONCLUSION AND SUGGESTIONS........................................................................................24 4.1 conclusion............................................................................................................................24 4.2 Suggestions..........................................................................................................................25 REFERENCES..............................................................................................................................26

CHAPTER 1

INTRODUCTION 1.1 Background of study The secondary report has been used for the preparation of this report. Internet surfing, consulting library, and literature review were the sources of the data. Daraz is one of the prominent rising stars of online retail shops in Nepal. Daraz is an online marketplace and logistics company which operates in markets of South Asia and Southeast Asia. It was founded in 2012 as an online fashion e-commerce marketplace in Pakistan by Muneeb Maayr (Founder) & Farees Shah (CoFounder)

at

the

based

venture

builder, Rocket

Internet.

Daraz

Group

operates e-

commerce platforms and logistics service in Bangladesh, Myanmar, Nepal, Pakistan and Sri Lanka. Bjarke Mikkelsen is the current CEO of Daraz. In May 2018, Daraz Group was acquired by the Chinese e-commerce company Alibaba Group from Rocket Internet Daraz is now a renowned and a well-established company making hundreds of deals every day. Daraz has been able to provide goods in a relatively cheaper rate compared to the market price by compressing retailer’s margin by tapping higher levels of wholesalers and traders. Added to that, it has also introduced its mobile apps, the Daraz App, available for both android and iOS. We are surveying on Daraz.com with the aim to review the following steps: 

The history of online shopping in Nepal along with Daraz.com, possible threats and security concern, applications of online shopping, and ethical issues regarding this subject matter.



The business model of Daraz.com, infrastructure employed for smooth operation, security mechanism it adapts to secure consumers’ personal data, and payment mechanism; cash or credit cards and more.



To know the impact of online shopping in Nepal.



To overview the applicability of online shopping in Nepal.

1

1.1.1 E-commerce in Nepal Ecommerce is still immature in Nepal. Even though the website like Kaymu.com.np, Meroshopping.com etc are doing well, they still lack the public exposure. Buying something from Internet is myth in Nepal. People still afraid to do it. Before a decade e-commerce was setup as sending gifts and money online and other websites promoting “Send Gifts to Nepal” which had merely a concept of e-commerce It was target to Nepali residing in USA, UK, Australia and Europe. There was no effect of that business to support the e-commerce concept in Nepal. Gradually the business was promoted by other companies who saw there was a marginal profit. Along with the rise of IT, and business concept many online stores were launched but they didn’t have the actual process of buying and selling online. They were the virtual stores with the best example which gave a concept of selling and buying online but not paying. Many companies have started the trend of e-commerce in Nepal decade ago, but the challenges are still the same. The actual sales have not been able to start due to lack of knowledge, awareness and online payment systems. Selling globally and inside the country is the same in years. Payment Gateways are being developed but they have their limitation due to legal and security issues. The lack of proper knowledge and awareness among the generation is the major hurdle in ecommerce. In past recent years due to education and reach to internet among the many people in Nepal has brightened the future of e-commerce The interest of students in the field of IT, the growth of IT companies has helped a lot in the awareness and interest in young generation for internet and IT, has directly created more opportunities for the growth of e-commerce in Nepal. Many online portals and shopping portals are launched now. Leaving the measurement of success behind, they are now on the top list. Peeping into the future of e-commerce, launch of few large online shopping portals was thought as milestone, everyone thought there will be a turnaround in the e-commerce industry in Nepal. Now having dozens of virtual Nepali stores in the web, they still have the same problem of payment and a belief of people, they still have a level of trust to build among the visitors. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Ecommerce is conducted using a variety of applications, such as email, online catalogs and shopping carts, EDI, File Transfer Protocol, and web services. Modern electronic commerce typically uses the World Wide Web for at least one part of the 2

transaction’s life cycle although it may also use other technologies such as e-mail. This includes business-to-business activities and outreach such as using email for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers. More companies now try to entice consumers directly online, using tools such as digital coupons, social media marketing and targeted advertisements. Therefore, e-commerce makes the work faster, easier as well as cheaper for the business to communicate with their suppliers and their customers. So, most of the business uses e-commerce to perform their activities. 1.1.2 Types of E-commerce The types of E-commerce are as follows: 1. Business to business (B2B): Business to business, B2B, e-commerce transactions happen between two companies. B2B activity is not new, but the internet has changed how everything is transacted. An example of B2B is a company that outsources its bookkeeping activities to another company. Another example includes a business that buys its products from a wholesale company. B2B transactions are usually handled with lines of credit and companies often times have long-lasting relationships with one another. The seller has responsibility of determining the buyer's creditworthiness. Example: Unilever

2. Business to consumer (B2C) Business to consumer, B2C, transactions deal with customers purchasing products and services from companies through the internet. Online shopping has increased significantly in recent years. Many companies take extreme security measures to protect the sensitive financial information of consumers. B2C e-commerce transactions are not strictly bound to retail shopping. Many customers purchase health insurance, auto insurance and similar products online. One reason for the popularity of B2C e-commerce is consumers enjoy the convenience of purchasing products and services online. Example: Clear trip

3. Consumer to consumer (C2C) Consumer to Consumer, C2C, e-commerce activity is more recent, and usually requires a business to play the middleman. Companies like eBay and Amazon have made C2C more 3

popular. The way it works is companies that have products to sell list them through a third-party site. Consumers looking to purchase products visit the site and search the available products. The consumer purchases the product and the seller is responsible for delivering the product. The business that plays the middleman usually requires a transaction fee from either the seller or buyer.. Example: OLX, Quikr, Daraz,101monkey…etc.

4. Consumer to business (C2B) Consumer to business, B2C, transactions occur when a company places a job online and businesses bid on the project. For example, a consumer that needs a website designed will place the details of the job on a bidding site along with his budget. Companies with experience in web design will submit bid proposals to the consumer. The consumer chooses a company, submits the agreed upon payment to the business and waits for the delivery of the website. Bidding companies act as the middleman verifying that payment and service are delivered.

1.2 Introduction to group members In partial fulfillment of the requirements for the degree of Bachelor of Business Administration at Faculty of Management, Tribhuvan University this report entitled as “Online shopping in Nepal; Daraz.com” is prepared on joint effort of Five group members of 6th semester. The group members are: I.

Sareena Bista

II.

Shishir Dhakal

III.

Sushovit Karki

IV.

Shital Sapkota

V.

Utsav Keshari Shah

1.3 Research Objectives The research is primarily based on studying and evaluating the mechanism of and online procedures occurred at Daraz.com. So we have following objectives of our research study: i.

To study online services and online security mechanism of Daraz.com.

ii.

To analyze online market segments used by the website.

4

iii.

To...