Report (Final)
Report (Final)
Report (Final)
REPORT ON
E-COMMERCE PRACTICES AND COVID-19:
ISSUES AND CHALLENGES IN NEPAL
Submitted By:
Saru Dahal
Submitted To:
Platinum Management College
Affiliated to Pokhara University
Kalikasthan, Dillibazzar
2023
I
Declaration
I hereby declare that the project work report entitled “A REPORT ON E-COMMERCE
PRACTICES and COVID-19: ISSUES AND CHALLENGES IN NEPAL” submitted for
the BBA is my original work and Project Work Report has not formed the basis for the award
of any degree, diploma, or other similar titles.
Signature…………….
Date:
II
CERTIFICATE FROM THE SUPPERVISOR
This is to certify that the Summer Project Report entitled “A REPORT ON E-COMMERCE
PRACTICES and COVID-19: ISSUES AND CHALLENGES IN NEPAL” submitted by
Saru Dahal for the partial fulfillment of the requirement and the work done by her under my
supervision.
Signature of Supervisor
Mr. Krishna Prasad Neupane
Platinum Management College
III
Acknowledgement
I would like to express my sincere gratitude to the people and organizations that have helped
me along the way as I've conducted research for my Bachelor of Business Administration (BBA)
p at Pokhara University on the subject of "E-Commerce Practices and COVID-19: Issues and
Challenges in Nepal."
I want to sincerely thank my research supervisor, “Mr. Krishna Prasad Neupane” for their
ongoing advice, mentoring, and insightful comments. His knowledge and suggestions were very
helpful in determining the technique and direction of the research.
I am incredibly grateful to everyone who took the time to take part in surveys and interviews,
sharing their insightful opinions and firsthand knowledge of the difficulties the COVID-19
outbreak in Nepal has caused. The breadth and caliber of this research have been increased by
their contributions.
I also want to express my gratitude to Pokhara University for giving me access to the tools,
atmosphere, and learning platform that have made it possible for me to explore and explore into
this important field of study.
I would want to conclude by saying that this research project has been a key turning point in my
academic career. I genuinely appreciate all of the people who have helped me and led me along
the road.
Sincerely,
Saru Dahal
BBA 6th semester
IV
Table of Contents
TITLE PAGE……………………………………………………………………………………I
DECLARATION………………………………………………………………………………II
CERTIFICATE FROM THE SUPERVISOR…………………………………………………III
ACKNOWLEDGEMENT……………………………………………………………………IV
EXECUTIVE SUMMARY……………………………………………………………………V
TABLE OF CONTENTS……………………………………………………………………...VI
LIST OF TABLES……………………………………………………………………………VII
LIST OF FIGURES………………………………………………………………………….VIII
CHAPTER I - INTRODUCTION………………………………………………………………1
1.1 General Background…………………………………………………………………...1
1.1.1 E-commerce…………………………………………………………………...1
1.1.2 COVID-19 …………………………………………………………………….2
1.1.3 E-commerce in Nepal………………………………………………………….3
1.1.4 COVID-19 impact on World based ecommerce ………………………...……5
1.1.5 Pandemic’s impact on Nepal based ecommerce ………………………………6
1.2 Problems and challenges at the time of corona virus pandemic ………………………8
1.3 Statement of the Problem ……………………………………………………………..9
1.4 Research objectives ………………………………………………………………….10
1.4.1 General objective…………………………………………………...………..11
1.4.2 Specific objective …………………………………………………..……….11
1.5 Research questions …………………………………………………………………..11
1.6 Scope of research ………………………………………………………………...…..11
1.7 Significance of research …………………………………………………………..…12
1.8 Literature Review……………………………………………………………….……12
1.9 Research Methodology…………………………………………………….…………15
1.9.1 Research Design……………………………………………………...………15
1.9.2 Research strategy …………………………………………………….………15
1.9.2.1 Quantitative Research Strategy ………………………………….….15
V
1.9.2.2 Descriptive Research Strategy………………………………….…..15
1.9.3 Data Collection………………………………………………..……………..16
1.9.3.1 Primary Data……………………………………….………………..16
1.9.3.2 Secondary Data…………………………………………...…………16
1.10Limitations…………………………………………………………..……………….17
CHAPTER II………………………………………………………….………………………18
PRESENTATION AND ANALYSIS OF DATA…………………………………………….18
2.1 Demographics Characteristics…………………………………………………………19
2.1.1 Classification of respondents by age …………………………..………19
2.1.2 Classification of respondents by gender……………………….………20
2.1.3 Direct personal experiences of COVID-19………………………….....21
2.1.4 Past frequency of online shopping …………………………………….22
2.1.5 Products purchased before pandemic ……………………………….…23
2.1.6 Reasons of online shopping before pandemic ……………………...…24
2.1.7 Changes in shopping frequency……………………………………..25
2.1.8 Products purchased in pandemic ………………………………….…26
2.1.9 Challenges faced during shopping in pandemic ……………..………27
2.1.10 Confidence in online transaction…………………………………….28
2.1.11 Encountered security related issues during online shopping…………..29
2.1.12 Challenges faced in internet accessibility…………………..………....30
2.1.13 Influence in trust by COVID-19 in online shopping …………………31
2.1.14 Tried new ecommerce platform in pandemic……………………….…32
2.1.15 Believe that pandemic will bring long lasting change in ecommerce…33
CHAPPTERIII…………………………………………………………...................................35
SUMMARY AND CONCLUSION………………………………….......................................35
3.1 Summary ………………………………………………………………….............35
3.2 Conclusion………………………………………………………………………....36
3.3 Scope for future research…………………………………………………………..37
REFERENCES………………………………………………………………………………..38
APPENDIX……………………………………………………………………………………40
VI
List of tables
VII
List of Figures
VIII
CHAPTER I – INTRODUCTION
1.1.1 E-commerce
Electronic commerce, or e-commerce, is a modern method of doing business that uses the
internet to meet the needs of customers, suppliers, and businesses for quick and affordable
delivery of goods and services. Customers and businesses now have access to the World Wide
Web thanks to its popularity and growth has been curious about this online company. As a
result, corporate operations and strategy have evolved throughout time, with many
organizations now emphasizing e-commerce as their main source of income. According to
Shakya, Chatterjee, and Thakur (2002).
Electronic commerce (e-commerce) has increased from a zero-dollar value to $600 billion in
business-to-consumer (B2C) and $6.7 trillion in business-to-business (B2B) transactions
globally, bringing about enormous changes in commercial organizations, marketplaces, and
consumer behavior (Laudon & Traver 2017, 7) although in the case of e-commerce in Nepal,
it is challenging to assess from the outside due to the lack of information that is readily
available to obtain a feel of the true scenario of e-commerce in Nepal.
E-commerce has grown more prevalent and well-liked as a result of its accessibility,
convenience, and worldwide reach. It has transformed the way businesses run and created new
opportunities for both business owners and consumers.
1
Business-to-Business (B2B): In this business model, companies market their goods and
services to other companies. It frequently entails wholesale transactions, such as when
a producer supplies goods to a shop or when a software provider licenses a product to
another business.
Consumer-to-Business (C2B): This business model takes place when consumers
provide businesses with goods or services. It could entail independent contractors,
consultants, or influencers offering their knowledge or original work to businesses.
Business-to-Government (B2G) e-commerce refers to the sale of goods or services by
enterprises to organizations or departments within the government. Examples include
internet portals for submitting bids and proposals or government procurement
processes.
Overall, e-commerce continues to change and influence the landscape of modern business,
opening up new options for business owners and giving customers easy methods to shop and
interact with brands.
1.1.2 COVID-19
The global pandemic known as COVID-19, or "coronavirus disease 2019," has had a
significant influence on society since it first emerged in late 2019. The severe acute respiratory
syndrome coronavirus 2 (SARS-CoV-2), a brand-new coronavirus that mostly spreads by
respiratory droplets, is responsible for the illness. In Wuhan, Hubei province, China, the first
cases of COVID-19 were reported in December 2019. Within the city, it expanded swiftly, and
later, it moved to other regions of China. The pathogen had penetrated international borders by
early 2020, causing a global health emergency.
Mild to severe COVID-19 symptoms can include fever, coughing, shortness of breath,
exhaustion, body aches, sore throats, and a loss of taste or smell. In extreme situations, the
illness may result in organ failure, pneumonia, acute respiratory distress syndrome (ARDS),
2
and death. People who are older or who already have health issues are more prone to serious
illness.
Governments and health organizations employed a number of strategies to stop the virus'
spread, including mass testing, contact tracing, quarantine and isolation techniques, social
seclusion, mask regulations, and travel restrictions. These precautions were taken in an effort
to lower the transmission rate, prevent overburdening of the healthcare system, and preserve
lives.
Countries all across the world have put various measures in place in response to the COVID-
19 pandemic to stop the virus's spread. These precautions consist of mass testing, contact
tracking, quarantine and isolation guidelines, social seclusion, mask requirements, travel bans,
and lockdowns. Additionally, vaccines have been created and are being used to help protect
people from serious sickness and lower transmission rates.
E-commerce in Nepal has been greatly aided by online marketplaces. These platforms offer a
digital marketplace where companies and individuals may present their goods and services,
get in front of more people, and enable transactions online. In Nepal, well-known e-commerce
sites include Daraz, Sastodeal, and Hamrobazar. The expansion of e-commerce in Nepal has
given entrepreneurs and small businesses new opportunities to grow their customer bases,
build an online presence, and compete with more established companies. Additionally, it has
3
opened up jobs in sectors like logistics, delivery services, digital marketing, and customer
service
Consumer behavior has significantly changed in recent years, with more individuals choosing
to purchase online for a variety of goods, including electronics, clothing, groceries, and
household goods. The ease of doorstep delivery, adaptable payment methods, and the
opportunity to contrast pricing and product reviews have all helped e-commerce become more
and more popular in Nepal. E-commerce is gradually changing how individuals in Nepal buy
and sell goods and services while also providing ease, accessibility, and financial
opportunities. The industry is anticipated to significantly contribute to the economic growth
and development of the nation as it continues to develop and adapt to the shifting needs of
consumers.
When e-commerce was initially introduced in Nepal in 1999, it offered the gift-sending
service, enabling Nepali’s residing abroad, particularly in the United States, to send gifts to
their friends, relatives, and loved ones .Despite the fact that e-commerce in Nepal began in
1999, and the industry is still developing at a slow rate. When it first began, only a small
number of people had access to the internet, and online retailers only displayed pricing in
dollars ($) after adding surcharges. As a result, anyone sending gifts internationally had to pay
a higher price. Since even the internet was scarce and extremely expensive, very few
businesspeople risked to lessen this effect, instead contributing to the development of a grey
market by operating their operations in this manner.
Today, Nepal has increasingly embraced the e-commerce industry, and there are numerous e-
commerce platforms there. The most well-known online shopping sites in Nepal are Sasto
Deal, Gyapu, Hamrobazar, Daraz, etc. The most notable and significant one is Daraz, which
was formerly known as Kyamu and is now known as Daraz after being acquired by the
Alibaba Group. Another competitor platform in a related industry is Sasto Deals. They began
their business journey in December 2011, and it is presently one of Nepal's top online retailers,
with a large customer base and a number of local and international partners and suppliers.
(SastoDeal, 2021).
4
Today's world is seeing an increase in the use of electronic transactions in a variety of
industries, including online shopping, restaurant ordering, ticket booking, taxi reservations,
hotel room reservations, and more. The e-commerce trend is starting to gain traction in
developing countries like Nepal. However, as a result of the COVID 19 pandemic's multiple
phases, e-commerce has also exploded in Nepal. The prolonged lockdown makes it impossible
to physically purchase necessities of life. As a result, customers started to comprehend how
simple and practical it was to buy goods and services online. E-commerce is growing
increasingly widespread as a result of increased public awareness of its advantages and reach.
Due to the COVID-19 epidemic, people all over the world have learnt a lot of things, but most
significantly, they have come to understand the importance of e-commerce and digitization in
daily life. Despite certain negative aspects, the COVID epidemic has raised people's awareness
of and interest in e-commerce. Most significantly, during this time, there has been a marked
rise in the use of e-commerce to satisfy people's basic needs. The various mobile wallet
payment systems in Nepal, such as kalti, imepay, esewa, etc., has also been providing the
services in the practice of ecommerce in Nepal by way of electronic payments. Several
Nepalese banks have also managed their services for electronic payment for practice of
ecommerce.
First off, people turned increasingly to internet shopping as a safer alternative to traditional
brick-and-mortar retailers as a result of the pandemic. Customers flocked to e-commerce
platforms to buy a variety of things, including groceries, household goods, electronics, and
even luxury goods, as physical outlets temporarily closed or operated with low capacity.
5
Businesses adjusted to fulfill the increased demand as a result of this change in customer
behavior, which resulted in an increase in online sales.
Thirdly, the international scope of e-commerce made it possible for companies to reach out to
untapped markets. International travel limitations made it difficult for consumers to shop in-
person, so they resorted to online marketplaces to access goods from all around the world.
This gave companies the chance to access a wider customer base and broaden their reach.
With consumers feeling more at ease making purchases from other countries and taking
advantage of the simplicity of international shipping, cross-border e-commerce experienced
tremendous development.
In conclusion, the COVID-19 epidemic has significantly impacted the e-commerce industry. It
has sped up the transition to online purchasing, sparked digital change, and created new
business prospects. E-commerce is probably going to continue to be a dominant force in the
global retail landscape, impacting how customers purchase and businesses run, as the world
continues to recover and adapt to the post-pandemic age.
6
demand for e-commerce platforms in Nepal. The pandemic hastened Nepalese customers' use
of digital platforms and internet purchasing. People who had previously been wary of or
unfamiliar with e-commerce gradually accepted it as their main method of buying necessities,
groceries, and other commodities. Even if things return to normal, this change in customer
behavior is anticipated to have a long-lasting impact on Nepal's e-commerce sector.
However, the epidemic also presented a number of difficulties for e-commerce companies
based in Nepal. Delivery delays were caused by the disruption of supply chains and logistics
caused by the restrictions and lockdowns. The increased demand was difficult for e-commerce
platforms to meet due to logistics issues and a shortage of labor. Businesses were forced to
change by using contactless delivery techniques, streamlining their supply chains, and
collaborating closely with logistical partners to guarantee on-time delivery. Positively, the
pandemic gave local business owners and small companies the chance to create an internet
presence. To stay afloat during the lockdowns and increase their consumer base outside of
brick and mortar stores, several traditional merchants made the switch to e-commerce. Since
local e-commerce platforms and marketplaces grew as a result, the economy in Nepal was
supported and new business chances were made.
The pandemic hastened Nepal's adoption of electronic payment systems. More people are
embracing mobile wallets, online payment gateways, and other digital payment methods due
to hygiene concerns and a decline in cash use. The transition to digital payments facilitated
convenience and improved customers' overall e-commerce experiences.
The pandemic also highlighted the significance of health and safety regulations in the e-
commerce sector. To safeguard both their employees and customers, businesses established
more stringent hygiene procedures, contactless delivery, and safety regulations. Building
client loyalty and pleasure grew more dependent on establishing trust and confidence in the
security of online commerce.
7
While the pandemic brought about a number of difficulties, it also served as a spur for e-
commerce's expansion and advancement in Nepal. In the post-pandemic period, the e-
commerce sector is anticipated to experience further breakthroughs, innovation, and more
digitization as more customers and businesses continue to embrace online buying.
8
Last but not least, the epidemic increased fraud and cybersecurity dangers.
Cybercriminals used the opportunity to access e-commerce sites that were vulnerable
and steal financial and personal data. To reduce these threats, businesses had to make
significant security investment and educate customers about online safety.
In general, the COVID-19 epidemic posed serious issues and difficulties for Nepali e-
commerce operations. Among the main difficulties encountered were disrupted supply chains,
a lack of skilled labor, capacity concerns, restricted internet access, shifting consumer
preferences, and an increase in cybersecurity threats. However, in the midst of the shifting e-
commerce market, companies that could adapt, use government assistance, and put successful
strategies into place became stronger.
Due to extreme demand, one popular online retailer in India, Big Basket, was forced to shut
down business. Another faced a similar problem and was forced to limit customer admission
to only existing customers, i.e., willfully ignoring new ones for a period of time. Additionally,
due to extreme demand, Amazon briefly started favoring larger orders over smaller orders.
Kunchaparthi, 2121.
The ecommerce sector is growing globally during COVID-19. Aside from the limitations and
restrictions brought on by COVID-19, buyers have found that making purchases from home
has been the safest course of action during this coronavirus pandemic (OECD, 2020).
9
Longer product delivery times, challenges brought on by movement restrictions, social
isolation, and lockdown are all problems that businesses encounter with e-commerce. The
COVID-19 epidemic has impeded the shipping procedure (Bhatti et al., 2020). Since the
existence and consequences of COVID-19 are unknown, many private brick-and-mortar
businesses have been compelled to go online, and COVID-19 has had a significant long-term
impact on consumer purchasing habits as well as the private company sectors. (Portugal,
Ungerer, Molinuevo, & Rovo, 2020).
Quality products that are advertised as being available are occasionally not delivered for a
variety of reasons, including inaccurate, damaged, or faulty products upon delivery,
insufficient storage facilities that cause product deliveries to be delayed or never shipped, and
buyer reluctance due to the unreliability of digital payments (Vaidya, 2019).
It's challenging to foresee the scope of changes that this emergency will bring in a time of
extreme vulnerability. This means that the long-term trajectory of the effect will be
significantly influenced by the accessibility of e-commerce environments and the extent to
which reforms aimed at enhancing the e-commerce industry are implemented (UNCTAD,
2020).
Since Nepal only accepts limited amounts of dollars, many of these e-commerce companies
don't have mobile apps, which forces customers to shop online using personal computers. In
addition, these businesses frequently have poor after-sales reliability and customer service,
which makes it difficult and problematic to receive goods from international suppliers (Malla,
2018).
10
1.4.1 General objective
The general objective of this report is to evaluate the impact of COVID-19's effects on Nepal's
E-commerce activities.
Determining the issues and challenges with the current e-commerce processes may be
helpful.
To strengthen standards for the benefit of the economy of the country, governments
may find it useful to assess the existing condition of e-commerce business rules in
Nepal.
It would help to develop concepts for existing e-commerce systems in Nepal and to
improve many areas that significantly benefit e-commerce enterprises for upcoming
new establishments.
Reviewing and analyzing the issues and challenges faced during the pandemic and
suggesting new directions for research may be helpful for academics in the future.
12
Due to the influence and introduction of cutting-edge technology from both nearby countries
and abroad, Nepal is poised to become a success in e-commerce. In Nepal, e-commerce seems
to be doing well. Many people enjoy doing their shopping and using internet services. Online
services and e-commerce portals are expanding rapidly. The future of e-commerce in Nepal
will improve as a result of the growing competition caused by the country's increasing number
of e-commerce websites.
The e-commerce sector in Nepal is still growing. It only recently started to expand. Despite
the fact that governments were hesitant to recognize e-commerce as a legitimate industry,
several FinTech companies that offer digital payment and gateway services for online
transactions have been instrumental in enticing conventional consumers to switch to online
shopping. Consumer preferences and behaviors among Nepali consumers have advanced as a
result of the Covid-19 scenario (Puri, 2020).
Gyapu was one of the first new ecommerce companies to launch in Nepal amid the Covid-19
pandemic. It was able to provide service to a large number of customers quickly. Gyapu plans
to expand its operations throughout Central Asia from its headquarters in Nepal, in contrast to
Daraz, which maintains a headquarters outside of Nepal. On the other hand, it is far easier to
create a written corporate expansion plan than it is to really implement it in compliance with
cross-border protocols and regulations (Puri, 2020).
The online purchasing awareness is very strong in the Nepalese e-commerce industry. On the
other hand, brand-new online business owners should be mindful that the Nepali e-commerce
market is still in its early stages. Emerging businesses should look beyond Kathmandu and
include much smaller vendors in a genuine value logistics chain before actually investigating
cross-border potential. In terms of satisfaction, more assurance and authenticity are required
(Puri, 2020).
In 2021, the COVID-19 pandemic's second wave struck damage mostly on the world
economy. All industries were readjusting their plans and working to recover. Despite the fear
13
and doom, the e-commerce industry grew significantly throughout the first and second phases
of the epidemic.
The year 2021 will be remembered as a turning moment for the ecommerce platform and its
users because of the extensive usage of virtual meetings, social distance, and face masks, as
well as a huge immunization effort against Covid-19.
After the initial shutdown on March 24, 2020, the number of Nepali online shoppers
increased. Since they were required to stay at home during the second lockdown, which started
on April 29, 2021 and lasted four months, more people started making purchases online.
Despite the markets reopening after the phase-out of stay-at-home orders in September, e-
vendors were able to retain their customers, and their business did not suffer. Ecommerce
companies claim that consumers now have more faith in the services offered by online sellers.
Due to consumers' increased confidence in the services offered online, market demand for
online during the second shutdown was higher than it had been the previous year (Otaru &
Enegesel, 2021).
Demand for e-commerce services surged during the shutdown as more people began to trust
the services, according to M.D. of Daraz Nepal Lino Ahlering. The use of social commercial
transactions is growing, deliveries are prompt and on time, and the acceptance of electronic
transactions is rising along with internet access, all of which are contributing to the expansion.
According to Nepal Rastra Bank, internet transactions reached a total of Rs. 4.93 trillion
between mid-October and mid-November 2021, up from Rs. 200 billion during the same time
the year before. During the course of the investigation, the number of transactions increased
from 34 million the year before to 48.66 million. Entrepreneurs in the digital payment sector
claim that the major issues facing the sector are digital literacy, the digital divide, and trust.
Since people still believe in monetary transactions, changing behavior is the only way to build
confidence.
14
1.9 Research Methodology
15
As the study is based on a case study of the ecommerce platforms daraz and sasto deal and the
effect of COVID-19 on those platforms in Nepal, this strategy is also used as a component of
the research strategy.
16
1.10 Limitations of the study
The following are potential restrictions for the study "Ecommerce and COVID-19: Issues and
Challenges”:
17
CHAPTER II
The systematic presentation and analysis of primary data are provided in this chapter. For the
purpose of the study, various statistical and regression models mentioned in the preceding
chapter were applied. Three sections make up this chapter. The major data presentation and
analysis, as well as the findings of the questionnaire survey, are covered in the first part. The
examination of the regression model, including correlation analysis, is covered in the second
section. Conclusions based on the results of the primary data analysis are covered in the third
section of this chapter.
This study is based on primary data analysis and mostly addresses the components of a report
on e-commerce practices and COVID-19: issues and challenges in Nepal. This section
presents the findings from a questionnaire survey that was given to several college-level
students. There is a set of survey questions available, including multiple choice, likert scale,
and yes/no questions. The next sections describe the profile of the respondents, together with
their individual traits and survey findings. To properly analyze the data, the percentage, mean,
and weighted average mean value have been calculated.
18
2.1 Demographics Characteristics
(This table and statistics display the number of respondents divided down by gender,
age category, and level of study as determined by the questionnaire survey utilized for
the study. Number denotes the total number of respondents in each category, while
percentage is the proportion of respondents in a given category to the overall sample.)
Below 18 7 7.8
18-22 43 47.8
23-25 35 38.9
Above 25 5 5.6
Total 90 100.0
50
45 43
40
35
35
30
25
20
15
10 7
5
5
0
Below 18 18-22 23-25 Above 25
19
The age distribution of the 90 participants in the study "E-COMMERCE PRACTICES AND
COVID-19: ISSUES AND CHALLENGES IN NEPAL" suggests that it was a diverse group.
The majority of responders (47.8%) were between the ages of 18 and 22 while 38.9% were
between the ages of 23 and 25. 7.8% of respondents were under the age of 18 and 5.6% were
above the age of 25, respectively. This distribution sheds light on how people of different ages
view the difficulties and practices of e-commerce during the COVID-19 pandemic in Nepal.
Female 50 55.6
Male 40 44.4
Total 90 100.0
20
There were 90 respondents overall, of whom 55.6% identified as female and 44.4% as
male, according to the study "E-COMMERCE PRACTICES AND COVID-19: ISSUES
AND CHALLENGES IN NEPAL." The knowledge of potential differences in experiences
and points of view across genders is improved by the entire perspective on e-commerce
activities and difficulties during the COVID-19 situation in Nepal that is provided by this
balanced gender representation.
Personally
Frequency Percent
Experienced
No 51 56.7
Yes 39 43.3
Total 90 100.0
21
According to the graph, 56.7% of respondents said "No," suggesting that they had not
personally encountered the topic. However, 43.3% of respondents said "Yes," indicating that
they had. This visual representation clearly illustrates the difference between respondents who
have and have not dealt with the particular aspects of the investigation, giving participants'
individual experiences with e-commerce practices and difficulties during the COVID-19
situation in Nepal.
22
The graph shows a wide range in shopping frequency: 72.2% said they shopped rarely, 15.6%
said they never shopped, 6.7% said they shopped monthly, 4.4% said they shopped weekly,
and only 1.1% said they shopped daily. The spectrum of purchasing habits prior to the
pandemic is clearly depicted visually, highlighting the predominate inclination toward
irregular shopping habits. By providing context for assessing the influence of e-commerce
practices and difficulties inside the COVID-19 scenario in Nepal, this knowledge helps to
better comprehend participants' historical purchase behavior.
23
The graph demonstrates the wide range of consumer preferences: books, office supplies, and
equipment for the workplace made up 5.7% of purchases, while fashion and clothing
accounted for 54.5% of purchases, electronics and gadgets made up 21.6%, products for
beauty and health made up 25%, food and household goods made up 23.9%, and products for
electronics and gadgets made up 25%. 14.8% of respondents also mentioned other things.
24
The graph shows that there are many different factors that influence people's decision to make
a purchase: convenience was mentioned by 26.1% of participants, a wide selection of products
appealed to 30.7%, saving time was crucial for 44.3%, avoiding crowded stores was a concern
for 27.3%, and 15.9% mentioned discounts and offers as a factor. 11.4% of respondents added
further explanations. The wide range of variables that affected participants' pre-pandemic
shopping decisions are well-represented in this visual representation.
25
The graph shows that different people have different buying habits. Of those surveyed, 38.9%
said their frequency of shopping remained the same, while 31.1% reported a minor rise and
12.2% a slight reduction. Additionally, 7.8% said their shopping had substantially increased,
while 8.9% said it had significantly dropped. Insights into the shifts in consumer behavior and
their implications for e-commerce practices and issues in Nepal during the COVID-19 era are
shopping habits have changed in response to the epidemic.
26
The graph shows a variety of regularly purchased things during the pandemic: groceries,
household goods, and health and safety products were all reported at 42.5%, while
entertainment items were bought by 20.7% of consumers and work-from-home tools by 5.7%.
Additionally, 24.1% said they had purchased additional things. Effectively capturing the
variety of products that respondents used during the pandemic, this graphic representation
sheds light on changes in consumption habits as well as potential obstacles and opportunities
for e-commerce operations in Nepal at the time.
2.1.9 Classification of respondents according to the challenges they faced while online
shopping during pandemic.
28
A wide range of confidence levels are shown in the graph: 50% of respondents claimed to be
neutral, 22.2% to be just a little bit confident, and 17.8% to be very confident. On the other
hand, only 3.3% said they felt very insecure, while 6.7% admitted to feeling slightly insecure.
A crucial element of Nepal's e-commerce practices during the COVID-19 era is highlighted by
this visual representation, which accurately depicts the participants' varied levels of confidence
in the security of online transactions. These observations help explain why consumers have
different levels of confidence in the security of online transactions.
No 66 73.33
Yes 24 26.67
Total 90 100.0
29
According to the graph, 73.33% of participants had no security worries, compared to 26.67%
who did. Insight into the prevalence of security-related issues among customers who engaged
in e-commerce practices during the COVID-19 era in Nepal is provided by this graphical
representation, which successfully portrays the distribution of experiences linked to security
challenges.
Yes 31 34.44
Total 90 100.0
30
According to the graph, 34.44% of participants had internet problems, compared to 65.56% of
individuals who did not. This graphical representation clearly illustrates how common internet
connectivity issues are among consumers who engage in e-commerce activities in Nepal
during the COVID-19 period. The issues that may affect e-commerce practices during the
pandemic are better understood thanks to these insights that shed light on potential obstacles
that users may have encountered when attempting to interact with online buying platforms.
Neutral 50 55.6
31
According to the graph, 55.6% of participants kept a neutral attitude, 27.8% thought their trust
had grown slightly, and 5.6% said it had grown significantly. On the other hand, 2.2% saw a
considerable decline in trust, while 8.9% saw a modest decline. The different effects of the
pandemic on participants' levels of trust in online purchasing platforms are clearly
communicated through this graphical representation, which also sheds light on how consumer
attitudes have changed in connection to e-commerce activities in Nepal during the course of
the COVID-19 period.
No 28 32.18
Yes 59 67.82
Total 90 100.0
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According to the graph, 32.18% of respondents did not experiment with new e-commerce
platforms while 67.82% did. This graphical illustration clearly illustrates the percentage of
participants in Nepal's COVID-19 who looked into new e-commerce platforms, demonstrating
just how willing customers were to try out other online buying possibilities. These perceptions
help us comprehend how adaptable and ready consumers are to accept the changes in the e-
commerce environment brought on by the epidemic.
No 18 20.22
Yes 71 79.78
Total 90 100.0
33
According to the graph, 79.78% of participants think the pandemic will actually cause long-
lasting changes in online buying habits, while only 20.22% disagree. The respondents'
prevailing viewpoint is effectively illustrated in this graphical representation, which also
emphasizes the broad expectation of long-lasting changes in e-commerce habits as a result of
the COVID-19 scenario in Nepal.
34
CHAPTER III
SUMMARY AND CONCLUSION
This chapter deals the brief summary of the entire study and highlights major findings of the
study. Moreover, the major conclusion is discussed in separate section of this chapter that is
followed by some implications and recommendations regarding a report on e-commerce
practices and covid-19: issues and challenges in Nepal.
Finally, the chapter ends with the scope of research in the same field.
3.1 Summary
The fast growth of digital marketplaces and e-commerce platforms in Nepal both before and
after the epidemic has demonstrated the potential for these technological developments to
transform conventional business models. The adoption of online platforms has accelerated due
to the pandemic-induced limitations on physical mobility and the increased importance of
safety precautions, allowing customers to purchase goods and services without risking their
wellbeing. In addition to preserving public health, this change has given businesses a practical
way to continue operating even in the face of extraordinary interruptions.
In-depth analysis of how the COVID-19 pandemic in Nepal has impacted internet shopping, or
E-commerce, is provided in this paper. I examined both how consumers and corporations
utilize the internet to make purchases. It's like a significant shift in the way we shop, especially
in light of the pandemic. I discovered that the epidemic has greatly increased the importance
of e-commerce. Many people used online shopping to buy the products they needed without
leaving their houses during lockdowns and restrictions. Businesses have to change and
continue using the internet to market their goods. This enabled them to endure during difficult
times.
But there are also difficulties. Due to transportation issues, delivering goods to people's houses
became challenging. Some people in Nepal were unable to take advantage of online shopping
because not everyone has simple access to the internet. Additionally, there is a lot of
35
competition among firms as a result of how quickly e-commerce expanded, so they must
develop new strategies to stand out.
Everyone must cooperate in order for e-commerce to function more effectively. The
government, those who set the laws, corporations, and nonprofit organizations that support
society ought to work together. They can work to increase internet accessibility and establish
guidelines for fair and safe online transactions. We also discovered that in order to keep their
clients pleased, firms need to be innovative and think of fresh concepts.
The learnings from this crisis must serve as beacons directing E-commerce practices in the
direction of resilience, adaptation, and social responsibility as Nepal navigates through the
unknown beyond the epidemic. It is evident that e-commerce has the ability to encourage
societal improvement and economic growth. The E-commerce sector in Nepal has the
potential to become a pillar of the country's prosperity by utilizing technology, embracing
innovation, and encouraging a spirit of cooperation. It will provide practical answers to both
economic problems and social goals.
3.2 Conclusion
Based on the research objectives and the observed outcomes and findings, the conclusion can
be divided into a variety of categories, including,
Although the majority of people in Nepal are not very familiar with the practice of
ecommerce, the restriction on movement was without a doubt the key cause to improve
ecommerce practice in Nepal. Thus, it is evident that most residents of Nepal's major
cities are familiar with e-commerce activities, and even those who live outside of these
areas have begun to comprehend and develop a sense of trust in it as a result of
engaging in it. They are also aware of its advantages and disadvantages as a result of
practices during pandemics.
Customer preferences for e-commerce practices can be discussed in a variety of
contexts, but this study is specifically focused on the pandemic scenario, so the author
came to the conclusion that consumer preferences for e-commerce over in-person store
visits are highly positive and significant, demonstrating that people were aware of the
perceived health risk during the pandemic and that, as a result of pandemic protocol, it
36
was even problematic so the people had to make alternative plans. Ecommerce was the
greatest way to solve those issues, therefore people adapted and carried on with their
practices despite the harsh conditions of pandemic times. Despite various problems and
difficulties, e-commerce companies like Daraz made a significant contribution to
meeting consumer needs.
1. Has the pandemic in Nepal caused the Nepalese population to grow even more?
2. After the COVID-19 epidemic, what are customer preferences?
3. How do the results of this investigation compare to those of the subsequent
study, and what are the differences?
37
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Techniques. Retrieved from datapine: https://www.datapine.com/blog/data-analysis-methods-
and-techniques/
Dangol, J., Chitrakar, S., & Yoo, K.-S. (2020). Impact of COVID-19 on Nepalese Small and
Medium Enterprises.Journal of Business and Social Sciences Research, 05(02), 01-14.doi:
https://doi.org/10.3126/jbssr.v5i2.35230
Ghandour, A., & Woodford, B. J. (2020). COVID-19 Impact on E-Commerce in UAE Ahmad.
Proceedings - 2020 21st International Arab Conference on Information Technology, ACIT
2020 (pp. 01-08). Giza, Egypt: IEEE.doi:10.1109/ACIT50332.2020.9300077
Hasanat, M. W., Hoque, A., Shikha, F. A., Anwar, M., Hamid, P. B., & Tat, P. H. (2020). The
Impact of Coronavirus (Covid-19) on E-Business in Malaysia. Asian Journal of
Multidisciplinary Studies, 03(01), 85-90. Retrieved01 02, 2022
Malla, S. (2018). Online Shopping Behaviour Among Young Consumers in Kathmandu, Nepal.
Satakunta Universityof Applied Science, 1-69.
38
OECD. (2020, 10 07). Unpacking E-commerce. E-commerce in the time of COVID-19, 1-10.
Pathak, C. (2020). DIGITAL ECOMMERCE. A case study of Daraz online shopping store in
Nepal, 58.
Puri, B. (2020, 07 09). E-commerce in Nepal: Issues and opportunities. Retrieved from
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opportunities.html
Singh, A. M. (2017). Pahilo.com: A Comprehensive B2B Ecommerce Module for Nepal, 1-12.
UNCTAD. (2020). COVID-19 and E-Commerce: IMPACT ON BUSINESSES AND POLICY
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doi:10.36713/epra1013
39
APPENDIX
Dear Respondents,
In order to obtain important insights on the e-commerce practices used during the
COVID- 19andemic and the related problems and challenges in Nepal, I am
conducting a research study as part of an academic project. Your participation in
this study is essential because it will help me understand the impact of e-commerce
on businesses and consumers during the pandemic. The data received from thus
questionnaire will be used to create a thorough report that can help Nepal address
problems and advance its e-commerce practices.
Demographic Information
Below 18
18-22
23-25
Above 25
40
2. Please select your gender *
Male
Female
3. Have you personally experiences any direct effects of COVID-19( e.g., contractedthe
virus, losing a loved one, experiencing financial issues, etc.)?
Yes
No
4. Before the COVID-19 pandemic, how frequently did you shop online?
Never
Rarely
Monthly
Weekly
Daily
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5. What things did you normally buy online? (Click each applicable option.)
6. What were the main reasons for online buying before the pandemic? (Click all thatapply)
Convenience
7. How has your online shopping frequency changed since the COVID-19 outbreak?
Decreased significantly
Decreased slightly
Remained the same
Increased slightly
Increased significantly
42
8. What products have you purchased more frequently online during the
pandemic?(Select all that apply)
9. Were there any specific challenges you faced while shopping online during
the pandemic? (e.g., delivery delays, limited product availability)
Yes
No
10. How confident were you in the security of online transaction during the pandemic?
Very confident
slightly confident
Neutral
Slightly unconfident
Not at all confident
43
11. Have you encountered any security-related issues or scams while shopping onlineduring
pandemic?
Yes
No
12. Did you face any challenges related to internet accessibility or connectivity while
engaging in Ecommerce activities during the pandemic?
Yes
No
13. How has COVID-19 influenced your trust in online shopping platforms?
Decreased significantly
Decreased slightly
Neutral
Increased slightly
Increased significantly
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.
14. Did the pandemic lead you to try new Ecommerce platforms that you hadn't used
Before?
Yes
No
15. Do you believe that the experiences during the pandemic will lead to a lastingchange
in online shopping behavior in Nepal?
Yes
No
45