Start Your Own E-Commerce Business in Nepal

Okay, so you have a business idea sketched out in a paper in front of you. You know you want to invest in and build your own e-commerce business in Nepal. You understand that having an e-commerce platform for your already existing business multiplies your clientele and revenue by manifold times. But just like in any other creative endeavor, you stumble upon the question “How and Where Do I Start?”. If that’s the case, this article is specifically made for you.

The current era is an era of inter connectivity. As a consequence of internet rapid takeover in the business industry, e-commerce is a profitable market. It’s no co-incidence that the founders of e-commerce giants Amazon and AliBaba are one of the wealthiest people on the planet. After all, isn’t business all about making it easier for your customers to reach out to you and buy your products?

The equation is straightforward: the more customers your business can reach to, the more revenue it generates. And what better way to reach to more customers than to allow them the liberty to browse through your products catalogue from the comfort of their couches?

E-commerce businesses achieve that incredibly well and that single-handedly explains why e-commerce businesses are procuring massive popularity in Nepal.

This article is a comprehensive step-by-step guide to everything you need to know about e-commerce businesses, how to start an online business in Nepal and how to sustain your e-commerce business in the long run and gain competitive edge over your competitors in the market.

Although the ideas in this article are specifically geared towards establishing an e-commerce business in Nepal, it is safe to say this article will help you in materializing your ideas into your own business, wherever or whoever you are.

Below are the seven crucial steps to building your own e-commerce startup business in Nepal.

Brainstorming Business Ideas

The very first step to establishing your own e-commerce business is to brainstorm ideas for your business. This is often the most challenging step because there’s no limit for business ideas.

The key is to come up with as many ideas as possible and then narrow down to a certain number of ideas by eliminating them through analysis and comparison until you land into one idea. The process might seem daunting at first because it’s hard to eliminate one from two equally striking ideas.

Stick to the idea that matters to you the most – one that aligns with your personal and professional goals.

Here’s a short guideline to follow to help you tackle through this step:

• Ask yourself questions that narrow down to an idea.  Questions like “What’s in demand in the market right now?” or “Does this idea help me grow professionally?” or “Is this business idea sustainable in the long run?” really help in coming up with ideas and weighing them.
• Know the market. Take some time researching what’s in demand in the market and plan your idea around those inferences.
• Brainstorming is a creative process. Split some of your time each day for brainstorming ideas for your e-commerce business exclusively.
• Look up online what’s trending and base your business plan around those products to maximize your chances of an early kickstart.
• Take some time to finalize your business idea. Forsee issues you might come across if you stick to that business plan.

Brainstorming is all about coming up with as many ideas as possible. Withhold your inner critic and let the ideas land on the list. After you’ve gathered enough ideas, work on eliminating the ideas that seem redundant to you.

You might want to research the market to know what products are in the highest demand, and base that deduction for choosing the best idea from the list.

Validating Your Idea and Researching

Now that you have an idea in your mind, the next step is to evaluate your idea and validating it through extensive market researching. The business plan for your very first e-commerce business might seem perfect to you but it’s rendered ineffective if there’s little to no demand for your products.

Before anything, you need to know about e-commerce business models and find one that suits your business idea. Business models are frameworks for your business which means they define how your business operates – is your business oriented towards providing service to the customers? or is it more geared towards selling supplies in large bulks?

Listed below are some of the well-known e-commerce business models:

• Dropshipping is where your business acts as a medium between a retailer and the customer. This is a perfect business model if you prefer not to produce and store the products directly.
• Wholesaling is what it sounds like – you store supplies in large amount (warehousing) and sell them in bulk to the retailers. Smart choice if you want to invest up-front.
• Whitelabelling is where you create your own brand and manufacture products yourself. Perfect for expanding your business into a very large scale but highly competitive.
• Subscription is a model where you deliver services or products to your customers in a regular interval of time. Most notable example being Netflix ‘s subscription model.

Business models are also categorized into three types based on who your business interacts with.

• Business-to-Business (B2B) is where your business acts as a source of products for another business company. In other words, B2B model is where one business interacts with another business company.
• Business-to-Consumer (B2C) is a widely used business model where your business is geared towards conducting transactions with consumers directly.
• Consumer-to-Consumer (C2C) is where your business acts as a platform for consumer-to-consumer transactions and you earn either via advertisement or commission or both. Popular example being HamroBazaar and eBay.

Know what category of business model your idea falls into. There are different caveats to each of the business models. Some require high investment upfront while others require extensive marketing from the start. Understand the limitations to each business models and use it as a basis for validating your business idea.

Researching doesn’t stop there though. The very next move is to know if your products are in demand in the market and study the existing businesses working to sell those products, if there are any. This is called Competitive Market Analysis.

• Scope in towards your market. If your market isn’t a competitive place, it’s less likely that the market is profitable and “trendy”.
• Determine who your competitors are. Do they provide the same products as you do or are their products a substitute to yours?
• Compare the services and prices of your competitors. Aim to set the prices below your competitors’ to maximize traffic.
• Analyze how your competitors promote. Know their marketing strategies and aim to implement an augmented version of theirs.
• Observe their social media presence and analyze what makes them successful or unsuccessful in that regard.

With enough researching, you should be able to identify your customer group and know how the competitors function in the market. This information is vital for future success of your e-commerce business.

Drafting a Business Plan

Okay, you have your business idea. You know what business model you’re encasing your business with and you validated your idea through extensive market research. What next? Time to draft a solid business plan.

Write down everything you’ve researched so far – your idea, the business model, the structure of your company, your target audience, your competitors in the market and how they function, your expected investment and other financial info.

Ask yourself crucial questions – “Can I operate without infrastructure for storage?“, “How many employees will I need?“, “What marketing strategies will help me reach my expected audience? Is it via social media advertisement or through newspaper ads?“, “Why should people buy my products over competitors’?“, “Is it a viable option to partner with another investor?” and so on. These questions help you solidify your e-commerce business idea and gives you a clear vision to move ahead.

As important as it is to conduct a proper market research before drafting a business plan, it is also pivotal to consider business exit strategies. Besides, you should be prepared for the worst and if you see your business in the verge of sinking, the exit strategies will aid in minimizing the loss to a large extent.

Refer to this article by Business.com about business exit strategies.

So far, you turned a raw business idea into a well thought-out and validated business idea – thanks to market research and analysis. From a scribble of multiple ideas, you now have a documented business plan with you.

Up until now, your idea sits in a piece of paper. The next four steps is all about materializing your e-commerce business idea into life.

Creating a Professional Website

Without a professional website, your e-commerce business is non-existent. It’s like having  a wholesale business without a storage unit or warehouse.

The very first step to turning your e-commerce business idea into life is to create a website for your business. Moreover, E-commerce websites need to be secure, robust and elegant-looking at the same time. Choosing a professional web development agency for getting your website built will save you a lot of time, hassle and money in the long run.

You need to know what features you require in your website as that can cut down a chunk of budget. Check out our guide on choosing a plan for website development and design in Nepal.

Building a website is a three-step process that includes the following:

• Domain Registration: Secure a domain for your website. Prices vary depending on the registration company. If you’re looking for an affordable domain registration company, we can be your choice.
• Web Hosting: You need a web hosting server to host your website files and databases. Delta Creation offers reliable web hosting service in Nepal, if you’re in need for that.
• Design and Development: Includes graphical designing and loading in features and functionalities that makes a good e-commerce website.

Delta Creation provides affordable web development services in Nepal and we’ve been doing so for the past 14 years. So, reach out to us if you’re in need of an affordable yet professional web development agency in Nepal.

Solidifying Your Brand

If there’s one element that makes your business stand out among other similar businesses, it’s your brand. Your brand encapsulates your business’s worth, reputation, vision and goodwill. It is what identifies your business among the huge stacks of businesses in the marketplace.

So, “How do I solidify my company’s brand?”, you may ask. Well, there’s no definitive answer to that. Your brand amasses reputation and goodwill the better your business performs in the market.

With that said though, it is extremely significant to have a worthwhile first impression of your company to your customers and that’s achievable by having a set of components properly set and thought-about:

• Name: There’s insanely high liberty to pick a name for your business, after all, it’s your own company. Minimalist and catchy names tend to leave a durable impression on your customers.
• Logo: A professional logo is a requisite for cementing your position in the e-commerce market arena. Your brand’s logo should look professional, minimally elegant yet enough to deliver your business’s objective. Therefore, feel free to contact us if you’re in search of a professional logo designing company in Nepal.
• E-Mail Marketing: After having an online e-commerce website set-up, email marketing is quintessential in driving conversions. Set up coupons, Thank-You emails and up sells. This helps to turn your visitors into potential customers.
• Social Media Presence: Asserting your presence in social media platforms beforehand ensures more outreach to your audience. Social media advertisement and marketing is a vital part of your business’s success.

Setting Up For Launch

Now that you have your website and branding ready, it’s time to launch your business and tread the entrepreneurial journey.

First off, register your e-commerce business legally. Every country has different registration processes that you have to go through. For registering an e-commerce business in Nepal, the process looks like this:

• Reserve your business’s name at the Office of Company Registrar (OCR). If the name for your e-commerce business is already taken, you might have to come up with a new name.
• Submit required official documents to OCR. Refer to this article to know about the required documents.
• Obtain a VAT or PAN Registration Certificate from Inland Revenue Department prior to the launching of your business.

After your documents are examined and approved by OCR, you will be issued a certification for your company’s successful registration. The whole process can take from 7-10 days.

More likely than not, your e-commerce business requires shipping products. If that’s the case, the next consideration is coming up with shipping and fulfillment plan:

• Set your shipping rates and methods. Decide if it’s a viable option to offer free shipping or delivery services to your customers. Specify if you want to deliver your products internationally or locally.
• Calculate the cost of shipping. Weighing the products and charging based on the weight is typically a preferred in most e-commerce businesses. However, if your shipping strategy calls for a different option for charging, specifying them is key.
• Mention your packaging methods and charge based on the type of packaging.

This article explains everything you need to know about shipping and fulfillment rates.

Launching an advertisement campaign for your business greatly helps to kickstart your e-commerce business. Here’s a quick checklist to help you in the process:

• Define your advertisement goals. Is your advertising goal to reach to more audience? or is it to advertise about a specific product that’s exclusive to your e-commerce shop? Or is it about a unique service that your e-commerce website provides? Or is it about a discount offer you’re providing to your first 100 customers?
• Be specific about your target audience. Developing buyer personas help to scope in to your target audience and advertise to them specifically. Be specific about the age group, demographics, income and habits of your target customers.
• Set a timing for your ad campaign. A well-timed ad campaign can substantially improve your sales and goodwill. A good rule of thumb is to launch an ad campaign during a major festival or an event. You can even prefer to sponsor events if your budget allows.
• Choose your advertisement methods. The way you advertise depends on your type of business, budget and most importantly, your target audience. Digital marketing, which includes Facebook Advertisement and YouTube marketing is a popular outlet for ads these days. We, here at Delta Creation, do offer professional and affordable digital marketing services in Nepal. You can contact us for more details and pricing. If pay-per-click ads are appropriate for your business, Google AdWords and Bing Ads are great choices. Therefore, Choose advertisement methods that fit your budget and audience and don’t over saturate your ads.

The key steps to launch your very first e-commerce business is to register your business legally, fixate shipping methods and plans (if your business includes delivering products to businesses or customers) and launch an effective advertisement campaign targeting your expected group of audience.

Post-Launch Marketing

Striding on an entrepreneurial journey means you have to put as much effort post-launch as you did pre-launch. After your e-commerce business is properly configured and launched, it’s now time to leverage your company’s valuation and expand to a wider range of demography. Marketing is the key ingredient in doing just that.

You have a generous amount of traffic driving into your e-commerce business or store. By investing your time and effort in properly marketing your business, it gets easier to convert your traffic into sales and in turn, drive more traffic:

• Advertise in various social media platforms. If needed, hire a social media handler to regulate posts and feeds in all of your social media accounts. Launch regular advertisement campaigns in Facebook, YouTube, Pinterest and Twitter.
• Utilize Search Engine Optimization (SEO) in your website. The higher your website ranks in web search results, the more traffic you’re going to get. SEO helps you in that. Our SEO Services here at Delta Creation has been trusted by many all around Nepal. Besides, we can help you write SEO-focused content for your website and help your website rank high in search results. Contact us for detailed information about our SEO Services.
• Develop mobile applications for your e-commerce business. Mobile applications assist you in reaching to more customers, driving traffic and potentially turning traffic into sales. As mentioned before, people are more likely to buy your products if you make it convenient for them to do so. Choose a professional mobile app development company to get your applications built. If you’re looking for an affordable and professional mobile app development company in Nepal, Delta Creation might be your best bet. Learn more about our mobile app development services.
• Measure your progress through analytics. Track your website’s traffic via Google Analytics. This provides you detailed information about your audience as well and what specific product are they most interested in. Consequently, you can use Facebook Business to manage your Facebook pages and monitor ad performance and traffic. Set up a Google Business account to increase your e-commerce business’s visibility. If you decide on partnering with us for digital marketing, we take care of every little step that counts to increase traffic and sales for your business.

Wrapping Up

E-commerce business is an extremely lucrative yet competitive market. Building your own e-commerce business is an overly challenging yet rewarding process, more so in Nepal where the marketplace calls for more e-commerce businesses.

Moreover, learning to grab a foothold in the e-commerce business industry teaches you so much about how the market functions, how to sell your brand, how to attract more audience and how to stand out in a crowd of clashing businesses.

We hope this guide was a worthwhile read and we hope this will prove to be a useful guide in helping you establish your very first e-commerce business in Nepal. Make sure you enjoy whatever you do during your entrepreneurial voyage. We wish you a very good luck!

Thanks for reading.