Kathmandu, July 4

On April 30, Jason Baidya ordered a book, Muddy Wolf at Red Rocks, by Joe Bonamassa using e-commerce platform called WishKart Nepal and transferred Rs 3,250 via e-Sewa, an online payment platform, to make the purchase.

The 40-something from Kathmandu was then told to wait for 20 days. After 20 days, the good was not delivered. Baidya then called the online shop and was told to wait for a week.

Many weeks have passed since then, but the book has not been delivered.

He has since been querying through Facebook Messenger. But since Monday, he has not been able to do that as well, as he has been ‘blocked’ in WishKart’s messaging platform.

“This is fraud, isn’t it?” Baidya questioned.

Baidya is not the first person to be duped by WishKart, which allows customers to place orders for goods that they wish to purchase from Indian e-commerce platforms like amazon.in and Flipkart. The online store’s Facebook page is filled with complaints from unsatisfied customers.

“The goods have to go through a lengthy process at customs offices,” said RaunakRauniyar, manager of WishKart. “Hence, the delay.”

“Well, if that was the case, why didn’t they explain it to me instead of blocking me on Messenger?” questioned Baidya.

Proliferation of e-commerce

A big portion of Nepal’s population still prefers to visit brick-and-mortar stores to purchase goods and services. But this trend is slowly changing in urban areas, where people have access to faster internet connection at relatively cheaper rates.

This has led to rise in number of online stores, especially on Facebook, where wannabe entrepreneurs, who do not have adequate capital to open a brick-and-mortar store, have created pages to sell goods such as footwear, watches, apparels, electronic items and mobile accessories.

It is not known how many online stores are operating in Nepal or how many people are shopping online. But according to a report titled ‘E-commerce Trends in Nepal’, prepared in 2015 by Kaymu — an online store which has since merged with daraz.com — 53 per cent of the e-commerce transactions take place in Kathmandu, followed by Biratnagar (23 per cent), Pokhara (eight per cent) and Chitwan (four per cent).

Although the size of online market in Nepal is still very small, the Kaymu study found that people who revisit an online store are twice as likely to make a purchase than first-time visitors. What’s more, 0.8 per cent to 2.4 per cent

of the visitors who visit an online store in Nepal make the purchase.

This e-commerce conversion rate is similar to the global conversion rate of 2.6 per cent recorded in the first quarter of 2018, as per the figures of Statistica, a provider of global market and consumer data.

It is a sign that the volume of e-commerce in Nepal may be small, but as many people here are likely to make a purchase if they visit an online store as people living in other parts of the world.

These data and trends paint an optimistic picture for the future of e-commerce in Nepal. Yet what is worrying is the emerging trend of online stores taking customers, like Baidya, for a ride.

Lack of regulations

“We have heard of a few fraudulent cases, but have not been able to take any initiative to control these activities, as nobody has formally lodged a complaint,” said Superintendent of Nepal Police Nabin Aryal, who looks into cases of cyber crime.

Many online customers shy away from filing police complaints because the amount involved is small. Take Era Shrestha, for instance, who had bought a bag from a renowned online shop but was delivered a damaged one. The store initially said the product would be replaced. But it didn’t even after more than a week of complaining. Shrestha eventually gave up, as the bag was worth only Rs 1,200.

Sujata Awale went through similar experience when she was delivered a sari that didn’t match the colour and quality mentioned on the site of an online store. “I initially told the delivery boy I wouldn’t accept it, but after he said he won’t take it back, I kept it because I had already paid for it,” she said.

Problems encountered by Shrestha and Awale are quite common among consumers who have bought goods from online stores. But it is not known how these problems could be resolved, as police do not entertain such cases and there is no authority to look into these issues.

“Malpractices are gradually being seen in online marketplaces because there is no mechanism to register online stores and neither are there laws to regulate them or their activities,” said Amun Thapa, founder of sastodeal.com, one of the popular Nepali online stores. “If appropriate laws are enforced, there’ll be a cutback in unprofessional conducts.”