Daraz Final is a Report

CHAPTER 1: INTRODUCTION 1.1 Background of study The data driven for the preparation of this report is secondary data. Internet surfing, consulting library, and literature review were the sources of the data. Daraz.com previously known as kaymu.com was launched in Nepal in May 2014 backed by Asia Pacific Internet Group, the leading online platform in Asia. After holding kaymu as a name for 3 long years, it has turned into daraz.com a year ago.Since its launch, Daraz has become Nepal’s fastest growing market place with more than 2,500 sellers onboard and over 200,000monthly website visits. After rebranding Daraz has totally revamped almost all of its online entity, starting from its logo, name, landing page, Facebook page and even domain name under which it was hosted. Added to that, it has also introduced its mobile apps, the Daraz app, available for both android and iOS. We are surveying on Daraz.com with the aim to review the following steps: The history of online shopping in Nepal along with daraz.com, applications of online shopping, possible threats and security concern, and ethical issues regarding this subject matter. The business model daraz.com uses, infrastructure they employ for smoothen their operation, security mechanism itadapts to secure consumers’ personal data, and payment mechanism; cash or credit cards and more. To know the impact of online shopping in Nepal. To overview the applicability of online shopping in Nepal. 1.2Introduction to online shopping Online shopping is a form of electronic commerce which allows consumers to buy goods and services from the seller over the internet. In the other words, online shopping simply implies buying goods and services over the internet using web browser. Consumers visit the website as per their interest according to their preference on goods and services. In the context of Nepal, online shopping is growing in a fast trend. It has not become even a decade since Nepal has been introduced to online shopping. There are various online shopping sites established in Nepal with the view of enhancing the easy buying and rapid services. Among these emerging sites, Daraz.com has become able to stand itself as competitive and lucrative site in online shopping. It has just become three years since Daraz.com previously known as kaymu.com has launched its operation in Nepal. Daraz is the venture of Rocket Internet; Rocket Internet is a German company headquartered in Berlin that builds online startups and holds shares in internet retail businesses. Daraz.com in Nepal has brought great channeling for entrepreneurs to put their products in the market and observe how growing online business helps them in a situation where doing business is difficult due to banking regulations and limitations. 1.3 Methodology of study Our report is based on research. So, we have made stringent effort to collect data from various sources so that our report will encompass a wide range of information, facts and figures. We have collected data from both primary and secondary sources, however, we have relied more on secondary sources. Under secondary method, we collected the information visiting the website www.daraz.com.np and www.Google.com which were, indeed, full of informative resources, which turn out to be vital. Similarly, under primary sources we collected some information from the personnel of Daraz itself from telephone and contacted the users of Daraz so as to know about their perception towards online shopping. 1.4Limitations of study This report is a partial requirement of practical exam of E-commerce of BBM seventh semester conducted by Tribhuvan University. The report has been prepared and submitted within a prescribed time. Although we did our best to make a comprehensive study of this topic, there’re still some limitations. They are: Since the report is based on secondary data, the findings are based on information collected. This report is conducted under the prescribed format by T.U. for the purpose of practical exam report of Bachelor degree. The study has been prepared under the constraint of the limited time. Thus, detail analytical study could not be conducted. Personnel we contacted through telephone were quite reluctant to provide us handful of information. So, primarily collected data may not be cent percent relevant. CHAPTER 2: COMPANY PROFILE 2.1 Structure of daraz.com: Daraz.com is an online platform that allows customer to buy the branded products. On daraz.com.np every product belongs to popular brand. They don’t offer any local product here. In short span of time daraz.com.np has grown a lot. They are number one online market place of Nepal. Operation of daraz.com is far more different from other typical organizations. There are total 8 departments on daraz.com. These departments are: 1. Sales: The work of sales is to source the buyers who provide quality products, give best service. They sign up the sellers with Daraz. Sometime they had to go to capture the picture of the products along with photographer team. They had to negotiate about the commission. They try to provide the best price of the product after negotiating with sellers as there is no chance of bargaining because the product price given in the website is fixed. 2. Seller management: Seller management manages the sellers account. Help them to give ads, maintain their orders. Help them to be top sellers. To stimulate the sales of the seller they try their level best with the promotion or any types of problem they faced. If any complain generates against the product quality or delivery service of sellers basically they deal with those issue. 3. Human resource: Human resource deals with the recruiting, selection, compensation, promotion, taking interview, leave related issue, managing turnover rate, record of overall performance etc. 4. Finance: Finance department takes care of Daraz’s financial works. They take care of planning, investing, expenses, future forecasting etc. 5. Administrator: There work is to deal with the other country managers, overall planning, monitoring the workforce, changing in work. More or less admin take care of each and every sector. 6. Public relation: Public Relation works with different parties who are attached with Daraz, arranging different events, deals with the reputation of the organization or if any problem arises or crisis handling. 7. Quality control: Quality control department deals with product listing, giving the details of product, approve the listings, uploading the product pictures and editing of the pictures. Moreover they also ensure the quality of the product which is going to upload in the website. 8. Customer service: customer service of Daraz.com.np is bit different than other organization. They had to validate the orders, order processing, receiving the inbound calls, and handling complains. They had to ensure the customer is satisfied so that they buy again. 2.2 Item available in Daraz.com Daraz is an instant solution for purchasing varieties of items of goods under a same website. Different sellers offer verities of items of products on Daraz website. Buyer can easily find and know about the products from daraz’s webpage and order them easily. The product lines of Daraz are shown below: Clothing Men's clothing Women's clothing Men's Accessories Women's Accessories Kids & Babies Clothing Sunglasses Footwear Men's shoes Women's shoes Kids' & Babies' Shoes Shoe Accessories Jewelry Rings Earrings Bangles & Bracelets Necklaces & Pendants Jewelry Sets Other Jewelry Watches Men's Wrist Watches Women's Wrist Watches Kids' Watches Unisex Watches Mobiles & Tablets Mobiles Tablets Mobile Accessories Computers Laptops Printers & Scanners Desktop PCs Computer Accessories Electronics Cameras Audio TV & Video Gaming Other Electronics Power Banks Home & Living Home Appliances Home Decor Furniture Kitchen & Dining Gardening Health & Beauty Skin Care Hair Care Perfumes Cosmetics Medicine & Health Care Toys, Kids & Babies Toys Baby Products Gifts Books & Media Bengali Books English Books Movies & DVDs Magazines Music Stationary Sports & Outdoors Cricket Football Sports Equipment Sports Clothing Sports Shoes Fitness Equipment Figure1: items available in Daraz.com 2.3 Buying and selling process: Unlike other websites, Daraz provides very flexible and user friendly process for both the seller and buyers to get registered in the website. Both the process is described below: 2.3.1 The buying process: To purchase something, one must have an account in daraz. One simply needs to register by providing some basic information (name, address, birthdate, phone number etc.). Once buyer likes something s/he places an order by clicking buy now. After this, a text message/email is sent with a code to validate the purchase. If the buyer validates it, the seller can see it when they login to their account and then seller is responsible for calling up the buyer, confirming the order, answering to any necessary queries, and deliver the product. If the buyer is unable to validate the order, a customer service agent from daraz calls the buyer up and validates the order and then the seller’s process starts as mentioned above. This process generally takes about 2-5 working days and the buyers usually get it by then unless there are other issues. Most sellers provide cash on delivery to buyers. Following is the process showing how customer can buy through Daraz’s website: Select the desired category Click on the desired category Customer can see all the product under that category Click on the preferred product The customer need to register his/her own account Figure 2: Buying process in daraz The customer will get the email Verify the email After verifying the seller will get an email from Daraz regarding the order and accordingly s/he will deliver the product to the customer. Figure 3: Product detail 2.3.2. The selling process: To sell through daraz, one needs to have an account as well. Once an order is placed it is showed in the account where details of the buyer is given with the product details (the one that the buyer choose.). The job of the seller is to contact the buyer, confirm the order, answer queries of the buyer (if any) and deliver the product. The seller pays daraz a percentage commission on the final sale amount. The advantage seller gets is the fact that the product stay with them so they are not stuck with stock that hasn’t sold. Also they get free marketing via Daraz. 2.4 E-commerce used: 2.4.1 Business to business (B2B): B2B e-commerce is simply defined as e-commerce between companies. These are the type of e-commerce that deals with relationships between and among businesses.Daraz.com also perform buying and selling of goods to the business organizations. The product of business organization can be sold through daraz.comdaraz.com sells its product an intermediate buyers who the sell the product to the final consumer. Figure 4: B2B model Following are the architectural models in B2B e-commerce: 1. Sell-side marketplace: B2B model in which organizations sell to other organizations from their own private e-marketplace and from a third party site. The key mechanisms in the sell-side model are: Electronic catalogues that can be customized for each large buyer and forward auctions. 2. Buy-side Marketplace: B2B model in which organization buy needed products or services from other organizations electronically often through a reverse auction. 3. Electronic Exchange: Refers to e-market place where there are many buyers and many sellers; open to all business organization. Also known as e-hubs or portals. 2.4.2 Business to consumer (B2C): B2C e-commerce is simply defined as e-commerce between business and consumer. These are the type of e-commerce that deals with relationship between and among businesses and final consumer. Daraz.com have helped consumer to get product easily. Consumer can get desired product through online with the help of this website; daraz.com. Daraz.com.np can be the example of B2C because customer can choose their product and place their order. The B2C model of e-commerce is more prone to the security threats because individual consumers provide their credit card and personal information in the site of a business organization. For example; we need to register in Daraz.com.np to purchase something. While registering process we need to provide our detail. In addition, the consumer might doubt that his information is secured and used effectively by the business organization. This is the reason why B2C model is not widely accepted. Figure 5: B2C model Common B2C e-business models include e-shops and e-malls. 1. E-Shops: It sometimes referred to as an e-store or e-tailer, is a version of a retail store where customers can shop at any hour of the day without leaving their home and office. 2. E-Mall: It consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops. An e-mall may be generalized or specialized depending upon the product offered by the e-shop it host. 2.5 SWOT analysis of Daraz.com: SWOT analysis is a method used to evaluate the Strengths, Weakness, Opportunities and Threats involved in a project or an organization. Strength of a business gives advantage over other. Weakness places the business at a disadvantage relative to others. SWOT analysis of Daraz.com is shown below: 2.5.1 SWOT analysis Strength They recruit young and energetic people for their organization. They believe that this type of organization needs young people because it is not like traditional organization. Its marketing policy is also strength. They arrange different contest and competition. Weakness: Daraz.com has some problem with their operation process. To source more sellers sometimes they don’t judge capability whether they are capable enough to business with Daraz or cope with the process. Inability to improve the state of goodwill they possess in the market. Opportunities: People are more interested to do side business. Daraz is helping them do so. Already they have above 10000 sellers. If they can properly manage, it will increase more. A lot of people are using internet now a days, and the internet subscription rate is growing at a satisfactory rate, so it is also an opportunity for an online market like Daraz.com. Threat: Since there are lots of online shops now days, it can be threat form Daraz. The delivery charge and delivery period is quite long, if they can continue their business with same charge and delivery time, they can gradually lose market share as competitors always tries to take advantages. CHAPTER 3: WEBSITE ANALYSIS OF DARAZ.COM To analysis the daraz website properly, we need to do a proper analysis of other factor like web usability, Meta title, Meta description, SEO, site map and etc. which are listed below: 3.1 Web Usability: In e-commerce, web usuability is all about customer satisfaction and the tools and imagination organization and professionals use to achieve and maintain related destination. Web usuability is the ease of useof internet site. Some broad destination of usability are the intro of information and alternative in a clear and concise way, a lack of ambiguity and the arrangement of important particular in appropriate areas.simply usability is the extent to which a product can be used by specified users to achive specified goals with effectiveness, efficiency and satisfaction in a specified context of use. 3.2 Customer Satisfaction: The quality of the online relationship with your users and how well your website meets theirs needs has a direct influnce on your bottom line. Web usability testing is often conducted to find out what users expercience are on a website, and the feedback from customers are used to implement improvements. 3.3 User benfits from Web usability: Our visitors can benefit from usability, because: They will be satisfied, not frustrated, with the entanglement web site or Cartesian product. They will enjoy interacting with the web site or product. They will achieve their goals effectively and efficiently. They will cultivate confidence and trust in the product or web site. 3.4 Providers benefit from usability: As a supplier, you may benefit from unstableness in many ways, including: Reduced growing time and costs, reduced support costs, reduced user errors, reduced training time and cost, Return key on Investiture. 3.5 Navigation: Navigation refers that how many layers you have and how is your menu. For a good navigation of a website it should have maximum three layers. In daraz.com’s website, it has four (04) layers. 3.6 Site map: In the definition of site map we may say that site map is a file where you can list your web pages to tell Google and other search engine about a company and its content. In our website, daraz Nepal has a site map and it is well organized. 3.7 SEO: It plays a vital role to improve the visibility of a website or search engine and to ensure a better usability for human visitor. SEO stands for Search engine optimization. SEO can improve your website traffic. Daraz Nepal has not proper SEO. While you will search for the best online shopping in Nepal then it will not show you the DAraz.com. 3.8 About us contact us pages: About us page option is for informing the customer and seller about the company and letting them know about the current promotions and news. 3.9 Meta Title: Meta title is some keywords which are used to find the particular products or website directly from any search engine like- Google, yahoo and etc. in Daraz.com.np they do not have proper metatitle and that is why they do not have any organic search position in Google. 3.10 Meta Description: Meta description is similar to Meta title but in Meta description there will be short descriptions where the items of products and services will be described. CHAPTER 4: OBJECTIVES OF THE STUDY  To determine the factors and attributes which influence online buying behavior of consumers in daraz.  To study the customer’s satisfaction level with regard to daraz online shopping.  To identify the key product and service categories opted by Customers depending on their profile.  To know about the infrastructure and technology adopted by daraz.  To know about the policies and strategies that daraz has formulated to gain competitive position in the market.  To know about strength, weakness, opportunities, and threats lying in front of daraz. CHAPTER 5: FINDINGS AND ANALYSIS From the above survey, we could find out that Daraz.com.np is one of the successful online shops. Online shopping had been increasing now days. Daraz.com.np will face lots of challenges in future as e-commerce industries in Nepal is growing. Ebay.com, sastodeal.com, hamrobazar.com, amazon.com, and etc. are the competitors of Daraz. So for being the best online e-commerce company of Nepal, it need to provide best customer services cause with the best service, number of customer would also increase. Now days, most of the people perform online shopping for their ease. In addition with this, it might be said that Daraz always relies upon the dealers or suppliers of products because they are not storing the product. After analyzing the survey statistics and secondary data, we have tried to narrate them with my report objectives. Furthermore I have tried to find out customer expectation and perception about Daraz Nepal. On the survey I have picked random 100 people through online. They put their opinions on the survey questioners. They have measured the service quality of Daraz Nepal through several questions and measurement scales, ratings and points. The findings are given below: 5.1 Age Group: On the survey I have found that most of the consumer who purchase and visit daraz website are in range of 20-25 years old. This age group also demonstrates the maximum number of internet users. They have several choice of online shopping. But generally their main concern is product quality, price, delivery duration and etc. Figure 5.1: survey result age group 5.2 Gender: From the above survey I could find out that almost 65% male and only 35% female participate in online shopping. From this data it can be said that more male visit Daraz website than female. Figure 5.2: survey result gender 5.3 Profession: Getting known about the profession of the website visitor has a great importance. From that idea, I wanted to know about the profession of the visitors. Here from the survey I get to know that almost 70%visitor and consumer are students. However a very less consumers are service holder are 29%. There are some consumer who is both students and service holder. Only 3% consumer is business man and 3% are others. This data clearly gives an idea that daraz Nepal should emphasize on the students specially. Figure 5.3: survey result of profession CHAPTER 6: CONCLUSION AND SUGGESTIONS 6.1 Conclusion After the completion of this project, we come to know that Daraz.com is one of the leading online shopping sites of Nepal. This site is adopting new technologies and making the interface of the website user-friendly. Also it has been adding up new products and services to the site putting the consumers’ preference, income, and accessibility into account. It is rendering the easy selection of products, price comparison, ordering, and fastest delivery of goods and services to the consumers. It has provided the consumer compatible payment mechanism; cash on delivery, credit card payment, and more. Daraz.com holds no inventory to itself thereby directly providing platforms for the users in the both aspects of buyers and sellers. It caters the wide range of products of various brands and the variety in products; electronic gadgets and home appliances, fashionable wears and accessories for men and women, books, and many more. Thus, it is the leading shopping site of Nepal. Likewise, with the help of this project, we can analyze the current situation of online shopping in Nepal by relating Daraz.com to this scenario. 6.2 Suggestions This site is quite location centric that is it has highly centered itself to Kathmandu valley more than other location. So this should initiate its operation to other location too. Home delivery service is available in limited areas. So it should expand this service to wide range of area. Delivery services should be made as quick as possible so as to achieve customer satisfaction. It should make itself accessible to large range of consumers; affluent or nonaffluent groups.