From Brick-and-Mortar to Digital: Nepal’s Retail Sector in Transition

Nepal's retail scene is changing. More people are shopping online. Big and small stores are joining the shift. The mix of phones, internet, and delivery services has pushed shops onto screens. While many still visit local stores, clicks are starting to replace foot traffic.

Shops Are Going Digital

In the past, most people in Nepal went to physical shops for everything—clothes, phones, groceries, or furniture. That’s still true in many towns and villages. But in cities like Kathmandu and Pokhara, online stores are getting stronger.

The COVID-19 lockdown made this change faster. With markets shut down, people had to try online shopping. Many liked it. They found it easy and quick. Even after the lockdowns ended, online buying didn’t stop.

A 2023 Nepal Rastra Bank report said that online payments grew by over 28% in a year. More than 3.2 million people used digital wallets for daily purchases. That shows how fast shopping habits are shifting.

Rise of E-commerce Platforms

Many websites now offer online shopping in Nepal. These platforms list thousands of products—from phones to winter coats. Some of the most well-known names are:

• Daraz – Owned by Alibaba. Offers fast delivery, big sales, and mobile payments.
• Hamrobazar – A top site for secondhand items. Many small sellers use it.
• SastoDeal – Known for electronics, home items, and deals.
• SY Bazzar – A newer but growing site with a clean layout and wide product range.

Each site works a bit differently. Daraz has flash sales. Hamrobazar is more like an online notice board. SY Bazzar focuses on service and easy returns.

According to The Kathmandu Post (Oct 2023), Daraz had over 6 million users in Nepal. But local platforms are catching up. SY Bazzar, for example, saw a 60% jump in traffic over one year, based on internal data shared with OnlineKhabar.

What’s Driving the Change?

Several reasons are behind the move from street shops to online stores:

• Smartphone Use: Over 70% of Nepalis now own a smartphone.

• Internet Growth: Cheaper mobile data makes it easy to browse and buy.
• Cashless Payments: Apps like eSewa and Khalti help pay online.
• Delivery Options: Riders deliver orders even to outer districts.

Also, people have less time. Many prefer to shop from their couch instead of spending hours in traffic.

Case Study: Daraz’s 11.11 Sales

The biggest test of online retail was Daraz’s 11.11 Mega Sale in 2022. They had over 1 million visits in a single day. Phones, TVs, and fashion items sold out fast. Some items were even delivered within 24 hours in Kathmandu.

According to MyRepublica, over 60,000 orders were placed that day. Daraz used 1,200 delivery riders and opened temporary sorting hubs to keep up. This event proved that online retail in Nepal can handle large demand when planned well.

Small Sellers Are Joining Too

It’s not just big brands. Small stores and home businesses are also using these platforms. Sellers list items on Daraz, SastoDeal, or SY Bazzar to reach new customers.

Even people who knit woollen hats or bake cakes now sell through Facebook or TikTok and deliver via Pathao or Foodmandu.

This gives more people a chance to earn from home. It also brings variety and local feel to online stores.

Challenges Still Remain

Online shopping is not perfect. Some issues still hold it back:

• Late deliveries in rural areas
• Fake or poor-quality products
• Trouble with returns or refunds
• Extra delivery charges

People still trust local shops more when buying things like gold, electronics, or furniture.

To fix this, platforms must be more honest and quicker with service. Trust is the key to long-term success.

Future Looks Bright

More people now search online before buying. Even if they visit a shop later, they want to compare prices first. This mix of online and offline will shape the future.

According to research by Nepal Telecommunications Authority, over 43% of internet users have tried online shopping. That number will grow as more services reach rural areas.

If you’re looking to try or improve online shopping in Nepal, you can check out SY Bazzar. The site is user-friendly and gives buyers many choices.

Final Thoughts

Nepal’s retail sector is changing fast. Shops are now open 24/7, not on streets but on screens. Buyers like the ease. Sellers like the reach. While street shops won’t disappear, the online shift is clear.

With trusted platforms like Daraz, Hamrobazar, SastoDeal, and SY Bazzar, more people are turning to the web to shop. The road from brick-and-mortar to digital is well underway, and there’s no turning back.