E-commerce in Nepal: Complete Setup Guide for Starting an Online Business

The pandemic changed everything for businesses in Nepal. Almost overnight, businesses that had been selling only through physical shops discovered that their customers were online — searching for products on their phones, buying through Facebook, and expecting home delivery. E-commerce in Nepal went from a “nice to have” to a survival necessity for many businesses.

Today, e-commerce in Nepal is growing fast. Online shopping platforms like Daraz have millions of users. Thousands of small businesses sell through Facebook and Instagram. Payment apps like eSewa and Khalti have made digital payments normal for everyday Nepali consumers. The opportunity to sell online in Nepal has never been greater.

This complete guide will walk you through everything you need to know to start and grow an e-commerce business in Nepal — from choosing the right platform and setting up payments, to handling delivery and marketing your store.

Table of Contents

• Is E-commerce Right for Your Business in Nepal?
• Choosing Your E-commerce Platform
• Payment Gateways in Nepal
• Logistics and Delivery in Nepal
• Legal Requirements for E-commerce in Nepal
• Building Your E-commerce Website
• Marketing Your Online Store in Nepal
• Common Challenges and How to Solve Them
• Success Stories — E-commerce is Working in Nepal

Is E-commerce Right for Your Business in Nepal?

E-commerce works well for many types of businesses in Nepal, but not all. Before investing in an online store, ask yourself these questions:

• Can my product be photographed attractively and described clearly online?
• Can I reliably ship or deliver my product to customers across Nepal?
• Is my product something people search for and buy online in Nepal?
• Am I willing to manage orders, respond to inquiries, and handle returns?

E-commerce works extremely well for: Clothing and fashion, handicrafts, electronics accessories, health and beauty products, books and stationery, food products (packaged), furniture, and home goods.

E-commerce is more challenging for: Fresh food requiring immediate delivery, services that require physical presence, highly customized products, and items that require in-person demonstrations.

If your business fits the first category, read on — this guide will help you get started the right way.

Choosing Your E-commerce Platform

The platform you choose is the foundation of your online store. Here is how the main options compare for Nepal:

Platform	Cost	Ease of Use	Nepal Payment Integration	Best For
WordPress + WooCommerce	Low–Medium (NPR 25,000–80,000 setup + hosting)	Medium — needs some learning	Yes — eSewa, Khalti, FonePay plugins available	Most Nepali businesses — best value
Shopify	Medium–High (USD 25–79/month ongoing + setup)	Easy — beginner-friendly	Limited — Nepal gateways need workarounds	Larger stores, international sales
Custom-built Store	High (NPR 150,000–500,000+)	N/A — you use it, developers build it	Full control — any gateway	Enterprise, unique requirements
Daraz (Marketplace)	Commission-based (no upfront cost)	Easy — Daraz handles most things	Yes — handled by Daraz	Side business, testing products, extra channel

Our recommendation for most Nepali businesses: Start with WordPress + WooCommerce. It gives you full control over your store, excellent Nepal payment gateway integration, strong SEO capabilities, and a one-time setup cost rather than ongoing monthly fees. It scales well from a small 20-product store to a large catalogue of thousands of items.

Payment Gateways in Nepal — eSewa, Khalti, FonePay, ConnectIPS, Bank Transfer

Payment is the heart of any e-commerce business. Nepal now has several reliable digital payment options:

eSewa
Nepal’s largest digital wallet with over 20 million registered users. Integration into your website allows customers to pay directly from their eSewa balance. Setup requires business registration with eSewa and a merchant account. Integration fees apply.

Khalti
A popular digital payment platform with strong developer support and easy API integration. Khalti is known for being developer-friendly, making it a preferred choice for e-commerce stores. Also requires business registration and merchant account.

FonePay
A QR-based payment network supported by multiple Nepali banks. Particularly useful for in-person payments but also integrable for online checkout. Popular with customers who prefer bank account payments over wallets.

ConnectIPS
Operated by the Nepal Clearing House Ltd, ConnectIPS allows direct bank-to-bank transfers. It is trusted by consumers who prefer banking transactions over digital wallets. Setup involves registration through NCHL.

Cash on Delivery (COD)
Do not underestimate COD. Despite the growth of digital payments, many Nepali online shoppers — especially first-time buyers — still prefer to pay in cash when the product arrives. Offering COD significantly increases your conversion rate, even if it adds some operational complexity.

Logistics and Delivery in Nepal

Delivery is one of the biggest operational challenges for e-commerce in Nepal. Here is what you need to know:

Inside Kathmandu and Pokhara: Same-day or next-day delivery is possible and expected. Services like Pathao, Delivery Club, and Lalitpur-based local couriers handle urban delivery efficiently. Cost per delivery typically ranges from NPR 60–150 within the city.

Outside major cities: This is where it gets challenging. Delivery to Butwal, Biratnagar, Dhangadhi, or rural areas takes 2–5 days and costs more. Companies like Sajha Yatayat, Prabhu Courier, and Nepal Post can help, but reliability varies.

Your options for delivery:

• Own delivery team: Best for local delivery, expensive to scale
• Pathao or similar platforms: Best for urban, on-demand delivery
• National courier services: For Nepal-wide delivery — Prabhu Courier, Sajha, Bluedart
• Bus transport (Yatayat): Affordable option for non-urgent deliveries to other cities

Key tip: Always provide tracking information to customers. One of the biggest complaints from Nepali online shoppers is not knowing where their order is. Even a simple WhatsApp update goes a long way.

Legal Requirements for E-commerce in Nepal

Operating an e-commerce business in Nepal requires proper legal compliance:

• Business Registration: Register your business with the Department of Commerce, Supplies and Consumer Protection or the relevant municipality. This is required to open payment gateway merchant accounts.
• PAN Registration: A Permanent Account Number (PAN) is mandatory for any business transaction. Register with the Inland Revenue Department (IRD).
• VAT Registration: Required if your annual turnover exceeds NPR 50 lakhs (Rs. 5,000,000). Consult a CA for guidance on when and how to register.
• E-commerce Policy 2079 (2022): Nepal published an official e-commerce policy in 2079 BS that outlines obligations for online sellers, including consumer protection requirements, data privacy considerations, and digital payment mandates. All e-commerce businesses should be familiar with this policy.
• Consumer Protection Act: Online sellers must provide accurate product descriptions, fair return policies, and honest pricing. Misleading consumers online can have legal consequences.

Building Your E-commerce Website — Step by Step

1. Choose and register your domain name (e.g., yourbusiness.com.np). A .com.np domain costs around NPR 800–1,500/year and gives a professional, Nepal-specific identity.
2. Choose reliable hosting — for Nepal businesses, a hosting provider with servers in or near Nepal or India gives faster loading speeds for local customers. Budget NPR 5,000–15,000/year for quality shared or VPS hosting.
3. Install WordPress and WooCommerce — most hosting providers offer one-click WordPress installation. WooCommerce is a free plugin that turns your WordPress site into a full online store.
4. Choose and customize your theme — pick a clean, mobile-friendly WooCommerce theme. Premium themes cost USD 20–60 and are worth the investment for professional appearance.
5. Upload your products — high-quality photos (at least 3 per product), clear descriptions, accurate pricing, and proper categories. This is time-consuming but essential. Do not cut corners here.
6. Integrate Nepal payment gateways — install eSewa and Khalti plugins, complete merchant registration, and test thoroughly before going live.
7. Set up delivery/shipping options — configure shipping zones (Pokhara, Kathmandu, rest of Nepal) with accurate costs.
8. Place test orders — before launching publicly, place test orders and run through the entire customer journey yourself. Fix any issues you find.
9. Launch and promote — announce on Facebook and Instagram, tell your existing customers, and start your marketing activities.

Marketing Your Online Store in Nepal

Building the store is only half the work. Bringing customers to it is the other half:

• Facebook Shop: Set up a Facebook Shop linked to your website. This allows customers to browse products on Facebook and buy through your website. With 14M+ Facebook users in Nepal, this is essential.
• Instagram Shopping: If your products are visual (clothing, handicrafts, food), Instagram Shopping tags allow customers to tap a product in your photos and go directly to purchase.
• SEO for product pages: Optimize product titles and descriptions with keywords Nepali customers actually search for. “Dhaka fabric bag Nepal”, “pashmina shawl online Nepal” — these keywords bring long-term organic traffic.
• Facebook and Instagram Ads: Target specific audiences in Nepal by age, location, and interest. Even NPR 5,000–10,000/month in ads can generate meaningful sales for a new store.
• WhatsApp Business: Many Nepali customers prefer to ask questions over WhatsApp before buying. Set up WhatsApp Business with your product catalogue and automated responses.

Common Challenges and How to Solve Them

Challenge: Customers do not trust online payment
Solution: Offer Cash on Delivery as an option. Display eSewa and Khalti logos prominently. Show customer reviews and testimonials. A secure (HTTPS) website also builds trust.

Challenge: Delivery reliability outside Kathmandu/Pokhara
Solution: Be honest about delivery timelines. Partner with reputable courier services. Provide tracking updates via WhatsApp or SMS. Offer free delivery above a minimum order value to encourage larger orders.

Challenge: Returns and refund management
Solution: Write a clear, simple returns policy and display it prominently. Make returns easy for the customer — this builds long-term trust even if short-term it costs you some money.

Challenge: Cash-on-delivery preference increases return rates
Solution: Require phone verification for COD orders over a certain amount. Take a small advance deposit for high-value COD orders. Build a database of reliable COD customers over time.

Success Stories — E-commerce is Working in Nepal

E-commerce is not theoretical in Nepal — businesses across the country are succeeding. Here are some categories where online selling has transformed businesses:

Fashion and Clothing: Nepali clothing brands selling ethnic wear, modern fashion, and customized garments have built strong followings on Instagram and Facebook, with orders coming from across Nepal and even from Nepali diaspora abroad.

Handmade and Artisan Products: Pashmina, Dhaka fabric, handmade jewellery, thangka paintings, and handcrafted goods — these uniquely Nepali products have found international buyers through e-commerce websites.

Electronics and Accessories: Phone accessories, IT peripherals, and electronics — categories that people actively search for online — have seen e-commerce stores compete successfully with physical shops by offering competitive pricing and home delivery.

Food Delivery: In Pokhara, Kathmandu, and Chitwan, restaurant and food businesses have built delivery operations that generate significant revenue alongside their dine-in operations.

The opportunity in e-commerce in Nepal is real and growing. The businesses that start now, build properly, and market consistently will be the ones that dominate their categories in the years ahead.

For an honest look at how much an e-commerce website costs to build, read: How Much Does a Website Cost in Nepal?

Once your store is live, make sure you have a solid digital marketing strategy to drive traffic and sales — without customers, even the best e-commerce site generates nothing.