Ecommerce Report 2
Ecommerce Report 2
Ecommerce Report 2
A project work
By
Submitted To:
Faculty of Management
Tribhuvan University
In Seventh Semester
2022
Acknowledgement
This project has been an eye-opener for me and I am really thankful to those who have helped
me regarding my work.
I express my profound gratitude to our Course Instructor Jiten Yadav Faculty Member, School of
Business Management, Tribhuwan University, Dharan, for guiding me with all his best efforts and
hearty inspiration to complete this study. I am fortunate to have his support while preparing this
report and throughout the course as well.
Introduction
Electronic payment systems are increasing in numbers due to wide spread internet based banking
and shopping. Khalti is also one of the electronic payment system recently introduced in Nepal.
Khalti is a digital wallet for instant, secure and hassle- free online payments in Nepal. Khalti is
operated and owned by Sparrow Pay Pvt. Ltd. The parent company is Janaki Technology which
has been in the software product industry since 2010. Its office is situated in Hariharbhawan,
Lalitpur. Khalti is a digital payment service that provides cashless transactions for various bill
payments, mobile recharges, DTH payments, money transfers, domestic remittance, shopping and
wallet payments. Khalti also provides various offers & cash backs on various service payments.
Mode of Business
• Business-to-Business Model (B2B)
Khalti deals with other corporate houses or merchants to make transactions. To provide services to
Khalti users, Khalti exchanges services with such corporate houses or merchants. For example,
Khalti transfers Ncell to provide recharge information of Ncell users. Along with such information,
significant amount of fund is also transferred between Khalti and Ncell.
Operation of Khalti
Khalti has integrated its system with some of the banks, financial institutions, government agencies
and private firms that are normally termed as merchants. Partnering up is a normal process with
complex mechanisms. The codes that make up the system and interface of Khalti is integrated with
that of the merchants and the Khalti system comes to action. Wide range of services is being
provided by Khalti to its customers. Some of the useful and attractive services provided by khalti are
as follows;
• Security
Currently, security is the second biggest concern for customers when it comes to mobile payments in
Nepal. Even though mobile payments allow customers to make payment transactions at their
convenience, many are concerned about the possibility of someone intercepting their payment
information. It is common for people to fear that their data will be breached through digital payment
sites.
Questions
• What are the chances that Khalti will compete with Esewa in the future?
• Why is Khalti more than a Digital Wallet?
CASE STUDY OF PATHAO (Pathao.com)
Introduction
Pathao is a local ride sharing platform in Bangladesh. Currently they are working in three cities
which are Dhaka, Chittagong and Sylhet. Pathao is a Bengali word means “Send”. Hussain M Elius,
Shifat Adnan and Fahim Saleh co-founded the company together in 2015. Their initial idea was to
deliver goods and products to their clients across the Dhaka city fast. Therefore Pathao initially
worked as a logistics service provider for traders. (Dhaka Tribune, 2017). Later in 2016 they
introduce on-demand motorcycle service. Anyone with a smartphone and internet connection can
order motorcycle service to reach to their destination safely and fast.
Mode of Business
Pathao follows the B2B and B2C business models. They use B2B model to deal with the other e-
business organizations who consume their logistics service. On the other hand they use B2C ‘service
providing’ model to serve their customers who consume their bike, car, food and parcel service.
Operation
A smartphone with GPS, an internet connection, and the Pathao application are needed to get a
Pathao. Based on the location of both customer and the driver, the platform will locate an available
driver based on their destination in the app. Vehicle categories vary according to where you're going
to use the app. Depending on the category, there are some differences in rates. The value of the race
is calculated by a Pathao algorithm, considering the distance traveled, elapsed time, and fuel used.
There are also different payment methods, depending on the location where you use the app. There
are also different payment methods, depending on the location where you use the app. Another
important feature of Pathao is the rating system. Passengers and drivers both evaluate each other.
Before accepting a ride, everyone can gauge each other's confidence. Pathao hires freelance riders as
a means of reducing operational costs. In this way, the cost of the vehicle can be reduced.
Payment
• Internet Banking
• Cash on Delivery
• Digital Wallet
• Errors in Maintenance
Pathao have many sectors that need to be maintained properly as like sometimes it takes multiple
ride requests for one driver. That creates confusion among customers.
Conclusion
Pathao is effectively working and maintaining its low pricing strategy. Its demand is also increasing
with time. It has achieved the trust of trust user and expanding its services to all over Bangladesh. If
Pathao can execute its service properly and handle the probable threats with efficiency it has all the
characteristics to lead the market.
Questions
• Why pathao is important?
• What are the major challenges of operating pathao?
CASE STUDY OF DARAZ (daraz.com.np)
Introduction
Daraz.com previously known as kaymu.com was launched in Nepal in May 2014 backed by Asia
Pacific Internet Group, the leading online platform in Asia. After holding kaymu as a name for 3
long years, it has turned into daraz.com a year ago. Since its launch, Daraz has become Nepal’s
fastest growing market place with more than 2,500 sellers on board and over 200,000 monthly
website visits. Daraz.com is an online platform that allows customer to buy the branded
products. On daraz.com.np every product belongs to popular brand. They don’t offer any local
product here. In short span of time daraz.com.np has grown a lot. They are number one online
market place of Nepal. Operation of daraz.com is far more different from other typical
organizations.
Mode of Business
• Business to business (B2B):
Daraz.com also performs buying and selling of goods to the business organizations. The product
of business organization can be sold through daraz.com sells its product an intermediate buyers
who the sell the product to the final consumer.
Operation
Daraz is also the leading marketplace in Nepal with over 1 million Nepalese checking into Daraz
online stores per month. Recently Daraz Group saw off a successful 11.11 single-day sale in
many South Asian markets. Daraz was originally launched in Pakistan as a fashion retailer.
Daraz Group was formed in 2015 as its parent company to head its operations as it expanded.
Since its acquisition of Kaymu in 2016, it launched the online marketplace in Nepal and
Myanmar.
Later in 2018, Alibaba acquired Daraz Group for $150 – $200 million. Now, Daraz is a leading
ecommerce giant in the South Asian markets inspired by Alibaba’s larger vision and consumer
practices.
Payment
• Digital Wallet
• Bank Cards
• Internet Banking
• Cash on Delivery
• Product Choices
This is one of the key problems in the online shopping scene in Nepal that most online
shopping portals are victims of. The products found online in Nepal are not up to the
quality that a consumer expects. Mostly, Nepali online portals are filled with a cheap
quality product. Also, in sites like Daraz, the same products have multiple listings with
very similar pricing. This makes the shopping experience feel clustered.
• Some items might not arrive on time due to lack of inventory or mishandling by the
company's logistics department.
Conclusion
It is rendering the easy selection of products, price comparison, ordering, and fastest delivery of
goods and services to the consumers. It has provided the consumer compatible payment
mechanism; cash on delivery, credit card payment, and more. Daraz.com holds no inventory to
itself thereby directly providing platforms for the users in the both aspects of buyers and sellers.
It caters the wide range of products of various brands and the variety in products; electronic
gadgets and home appliances, fashionable wears and accessories for men and women, books, and
many more. Thus, it is the leading shopping site of Nepal.
Questions
• How daraz manages logistic operation?
• What can we expect from daraz Nepal in future?
CASE STUDY OF AMAZON (amazon.com)
Introduction
As one of the world's leading e-commerce companies, Amazon.com is one of the largest retail
stores in the country. As a small bookseller in 1995, Amazon has grown to be worth billions of
dollars today (Amazon.com). Although its headquarters are located in Seattle, Washington, its
products and services are available in different countries across Asia and Europe. Amazon Inc. is
an American international technology company mainly based on e-commerce, digital streaming,
and cloud computing. It is an online retailer, manufactures e-book readers, and provides web
services. Over the years it has been in operation, the company has become an iconic example of
electronic commerce. Among the commodities offered by the company are industrial items,
health and beauty products, books, games, groceries, kid’s products, jewelry, sports products,
music, movies, toys, and electronics.
Mode of Business
The Amazon uses Business to Business (B2B), Business to Consumer (B2C) and Consumer to
Consumer (C2C) type of e-commerce for its online retailing .
• Business to Business (B2B): In this type, Amazon allows businesses with an Amazon
business account to sell and purchase products, both one-off and in bulk.
• Business to Consumer (B2C): In this type, Amazon sells a service or product directly to
a consumer online.
• Consumer to Consumer (C2C): In this type, Amazon allows customers to trade with each
other, frequently in an online environment.
Operation
It started as an online bookstore in 1994. It was quite a novel idea in those times, which garnered
a lot of popularity among the masses. Its headquarters are located in Seattle, Washington in the
United States. Soon, its business started growing. The products that were sold on this platform
kept on increasing. From a simple online bookstore, it turned into an ‘everything store.’ Amazon
is widely popular for its online service. But, it has also started some physical stores. As of 2017,
these stores have brought in enormous profits for the company. A gentleman called Mr. Jeff
Bezos formed this company back in 1994. They knew the potential their idea had, and they had
also envisaged what revolution the progressive technologies and the internet are going to bring
about. As of now, Amazon deals in billions. It began as a simple E-commerce platform, which
has now grown to become a complex digital ecosystem. The product selection on Amazon is
extensive and impressive. Globally, billions of people invest in these products, generating
significant revenues for the company.
Payment
The following payment methods are available for use:
Conclusion
Overall, future e-commerce trends bring both possibilities and risks to Amazon. Amazon can
continue to develop and compete in e-commerce by investing in its own platform and
capitalizing on trends such as customization. Overall, future e-commerce trends bring both
possibilities and risks to Amazon. Amazon, on the other hand, is well-positioned to capitalize on
these developments. Amazon can continue to develop and compete in the e-commerce industry
by investing in its own platform and focusing on trends such as customization.
Questions
• How amazon’s supply chain management strategy works?
• What, in a nutshell, has made Amazon into a major player?
CASE STUDY OF E-SEWA
Introduction
Esewa is a secured online payment service offered by F1 Soft International Private Limited. The
objective of eSewa is to allow payment of bills to various merchants or companies from one place.
This saves you from traveling to each company and wait in long lines to pay your bills. In addition,
the payment is done through secured channel without exposing bank account or credit card number
to the company where you want to pay your bills to.
Esewa is the first secured online payment gateway service in Nepal. The payment in eSewa is
done over a secured channel without exposing bank account or credit cards numbers to the
merchant where you pay your bill. ESewa does not charge any amount from your bank account
when you transfer funds to eSewa. However, it does charge fees in other cases, such as receiving
payments for goods and services or receiving payments made using debit or credit cards.
Mode of Business
Esewa uses two types of business model i.e. B2B and B2C. Till 2010 Esewa used only one
business model but at the end of year 2013 it used another business model. B2B business model
means one business selling product and services to another business. B2C business model means
one business selling product and services to another customer. In B2B model, outlets like cyber
cafes can register with esewa and payment for utilities and other services. In the B2C model,
anyone can register and use the services.
Operations
It offers a state-of-art payment gateway solution that incorporates some of the latest integrated
techniques developing a secured, fast, and real-time gateway. . It has been growing as trusted
company because of its quality service to its customers. Though there are others payment
gateways Esewa has become the first choice due to its goodwill. More than 60000 customers are
found using esewa service. Esewa frequently does market research and do SWOT analysis. It is
found that in nearly 75% to 80 % customer are satisfied by its service. While talking about
employees, number of men and women worker is in 50-50 ratio. Esewa is found to be more
popular means of payment in young generation after it brought new business model in 2013
along with mobile apps.
To use Esewa, you must have an active e-banking account with any bank associating with esewa.
You must transfer necessary funds to Esewa from your bank account by using bank or direct
deposit in esewa account. You can do this by debiting your account with necessary funds
required to pay your bills to various companies. There are several companies that have
associated themselves with Esewa. Some of these companies are;
Nepal Telecom, Nepal Electricity Authority (NEA), New Business Age, Buddha Air, Nepal
College of Information, Himal Technologies, SUBISU Cable net, Web Surfer, Worldlink
Communication, and Laxmi Bank.
Payment
ESewa specializes in Secure Real-time transaction processing service and support. ESewa online
payment gateway performs payment authorization and authentication, and makes settlement of
funds between Banks, Merchant and User (Customer).
Esewa is a safer and easier way to pay. A customer can use their credit card/ bank account with
Esewa, and get all the benefits- without exposing their bank account/ credit card number.
Conclusion
Esewa has evolved as a dynamic and interactive platform for electronic payment. It has changed
the way of payment, gradually replacing the traditional way of payment. Its success has been
remarkably acknowledged by more people in urban areas where there is a good infrastructure for
internet and network services. It is expected that the way esewa is emerging will definitely serve
the people ensuring more security, reliability and efficiency in the coming days. It has more than
10000 outlets and access over all 75 districts. Around (75-80) % people are satisfied with the
service provided by the Esewa. The vision of Esewa is to reach as top as Mpesa (Biggest e-
commerce site). The major challenge to the Esewa is physical recharge card which is even used
by the illiterate people as well.
Questions
• Even in this technological era, why people are choosing hard cash over the digital
payment in Nepal?
• Why most of the populations are not aware about eSewa or any digital payment
portal?
• Esewa is getting tough competition from its major competitors (Khalti,
ipay,IMEpay), so how can eSewa sustain its number one positions in Nepalese
market.