Chapter 2: E-Commerce
Scope of E-commerce in Nepal
E-commerce, or online business, is a growing industry in Nepal with a lot of potential for growth in the future.
Here are some of the factors contributing to the scope of e-commerce in Nepal:
Growing Internet and Smartphone Usage: The number of internet and smartphone users in Nepal has
been increasing rapidly over the years. As of 2021, more than 40% of the population in Nepal are internet
users, and this number is expected to increase in the coming years. The availability and affordability of
smartphones are also contributing to the growth of online business in Nepal.
Rapid Urbanization: Nepal is rapidly urbanizing, with more people moving to cities in search of better job
opportunities and a better standard of living. This demographic shift is creating a population of urban,
tech-savvy consumers who are comfortable with online shopping.
Increasing Disposable Income: Nepal's economy has been growing steadily in recent years, with an
increasing number of people earning higher incomes. This is creating a middle class with greater
purchasing power, which is driving demand for more diverse and higher-end products that are often
available online.
Government Support: The Nepalese government is taking steps to promote the growth of e-commerce
in the country. The government has developed a legal and regulatory framework for e-commerce,
invested in infrastructure, provided education and training programs, and offered financial support to
businesses engaged in e-commerce. This support is expected to create a more conducive environment
for online businesses to grow in Nepal.
COVID-19 Pandemic: The COVID-19 pandemic has accelerated the shift to online shopping in Nepal, with
more people avoiding physical stores due to health concerns. This has created new opportunities for e-
commerce businesses in the country.
Overall, the scope of e-commerce in Nepal is promising, with strong growth potential driven by increasing
internet and smartphone usage, rapid urbanization, rising disposable income, government support, and the
impact of the COVID-19 pandemic. As more Nepalese consumers become comfortable with online shopping,
e-commerce businesses in Nepal can tap into this potential and contribute to the country's economic growth.
Government steps in implementation of e-commerce in Nepal
The Nepalese government is taking several steps to promote the implementation of e-commerce in Nepal.
Here are some of the ways the government is supporting the growth of e-commerce:
Legal and Regulatory Framework: The government has developed a legal and regulatory framework to
facilitate e-commerce in Nepal. The Electronic Transaction Act, 2063 (2008) provides legal recognition to
electronic transactions and e-signatures, while the Consumer Protection Act, 2075 (2019) protects the
rights of online consumers.
Infrastructure: The government is investing in infrastructure to support the growth of e-commerce. This
includes building high-speed internet networks and developing online payment systems.
Education and Training: The government is investing in education and training programs to develop the
skills and expertise needed to work in e-commerce. This includes funding for universities and vocational
training programs, as well as initiatives to train entrepreneurs in e-commerce.
Financial Support: The government is providing financial support to encourage the growth of e-
commerce. This includes funding for start-ups and small and medium-sized enterprises (SMEs) that are
engaged in e-commerce.
Partnerships: The government is forming partnerships with private companies and other organizations to
promote the development and adoption of e-commerce in Nepal. This includes collaborations on
research projects and initiatives to promote the use of e-commerce in various industries.
Promotion of Digital Payments: The government is promoting the use of digital payments to facilitate e-
commerce in Nepal. This includes initiatives to develop online payment systems and promote the use of
mobile money.
