Beginner's 10-Step Plan to Build an eCommerce Business in Nepal

This is going to be a step-by-step plan and guide to build an eCommerce business in the Nepali market. Since the title says "beginners," we are focusing on a small investment eCommerce business.

1. Choose Your Niche

One of the smartest ways to choose what to sell online is by using the “Ikigai + market fit” approach. This means you should focus on four things: what you love (passion), what you're good at (skills), what people are looking for (market demand), and what can make you money (profitability). Start by taking a pen and paper and writing down a few product or business ideas. Compare them based on these four points and pick the one that stands out the most.

Since you're planning to sell online, it’s easier to figure out your potential customers using search data. Search volume tells you how many people are looking for that product each month. You can check this using free tools like Semrush, which gives you 10 free keyword searches daily. Just go to the site, type in a keyword related to your product (called a seed term), and it will show you how many people are searching for it. This helps you understand demand. You can also use keywordtool.io as an alternative for checking search volume.

Once you go through this process and choose a product, let’s say you decide to sell earrings inside the Kathmandu Valley, you now have an idea backed by both passion and market demand. This gives you a much better chance of success when launching your eCommerce business.

2. Register Your eCommerce Business

Registering an eCommerce company in Nepal involves a few key steps: reserving your business name, submitting documents, paying fees, registering for tax, and setting up operations. The process usually takes about 7 to 14 days and can cost between NPR 50,000 to NPR 100,000, which includes legal and basic digital setup.

Once your business is registered, focus on things like tax compliance, opening a business bank account, and setting up your online store with secure payment options and clear customer policies.

Many people also hire a law firm to help with the paperwork and process, which can make things easier and faster. Even if someone else handles the setup, it’s still important for you to learn the basics yourself. Also, don’t forget to read the newly updated eCommerce bill of Nepal, as it includes rules that every online seller should know.

3. Get PAN or VAT Registration

A PAN (Permanent Account Number) is a 9-digit number given by the Inland Revenue Department of Nepal to identify taxpayers like businesses, freelancers, and working individuals. If you run a small business or work for someone, you’ll likely need a PAN to pay taxes, open a business bank account, or issue official bills. There are two types: Personal PAN for individuals and Business PAN for companies or firms. Getting a PAN is free and easy. You can apply online through the IRD website or the Nagarik App by filling out a form, uploading your photo and ID like a citizenship copy, and selecting the nearest tax office. After submitting the form online, you print it and take it to the IRD office for final approval. Once they check your details, you’ll get your PAN in a few days. Having a PAN helps you run your business smoothly and follow the rules set by the government.

4. Build a User-Friendly eCommerce Website

If you're planning to start an eCommerce website in Nepal, you have several options like Shopify, custom-built sites, or WooCommerce. But for beginners, WooCommerce is the best choice. It's easier to use, especially for non-technical people, thanks to its drag-and-drop features. It also has low maintenance costs, which makes it perfect for small businesses. One of the biggest advantages is that WooCommerce supports helpful plugins that can handle important parts of your online marketing, such as SEO and paid ads.

You can hire a freelancer or an agency to build your site. On average, the cost of building a WooCommerce-based eCommerce site in Nepal is around NPR 50,000 or more. Be careful not to fall for extremely low-price offers. Instead, research at least 10 eCommerce website development agencies in Nepal and choose one that seems trustworthy and experienced.

When hiring someone, make sure they consider basic SEO settings right from the beginning. Also, ask them to connect your website with tools like Google Analytics and Facebook Pixel. These are very important for tracking your visitors and understanding what works. Setting up the Facebook Pixel is especially important in Nepal, as Meta ads (Facebook and Instagram) usually bring in the most leads and customers.

5. Set Up Payment Gateways

To integrate a payment system for a small eCommerce site in Nepal, you need to first choose a local payment gateway like Khalti, eSewa, IMEPay, or Fonepay that supports online transactions. After choosing one, you need to create a merchant account with them by submitting your business details, PAN number, company registration documents, and bank account info. Once approved, they will give you API keys and integration guidelines. If you have a developer, they can use these APIs to connect the payment system to your website, allowing customers to pay using mobile wallets, debit/credit cards, or direct bank transfer. Most providers also offer plugins for platforms like WooCommerce, Shopify, or custom sites, which makes integration simpler. After setup, you should test the payment process to make sure it works properly before going live. This setup allows your customers to pay easily and safely while you receive payments directly to your bank.

6. Arrange Delivery & Logistics

To arrange delivery and logistics for a small eCommerce site in Nepal, you can partner with local courier services like SastoDeal Delivery, Pathao, Delivery Nepal, or Aramax. First, contact these companies to open a business delivery account by providing your business details like PAN, address, and contact information. Once you're registered, they will guide you on how to book pickups and track deliveries. Many courier partners also offer plugins or dashboards that can be connected to your website, so orders can be processed and shipped easily. You’ll need to decide if you want to offer cash on delivery, prepayment, or both. After receiving an order, you pack the product, generate a delivery slip, and request a pickup from the courier. The delivery partner will then handle the shipping and, if it’s a cash-on-delivery order, they will send the money to your bank after successful delivery.

8. Create a Marketing Plan

To grow your business, you need a clear marketing plan that uses simple and effective digital methods. Start with SEO, which means making your website easy to find on Google and other search engines. Then, run ads on Facebook and Google to reach more people who might be interested in your products or services. Create and share useful content like blog posts, videos, or social media updates that help people learn about what you offer. Use email to stay in touch with your customers by sending them news, offers, or helpful tips. You can also work with influencers who already have a lot of followers to help spread the word about your brand. The most important thing is to be consistent, because showing up regularly builds trust and helps people remember your business.

9. Focus on Customer Experience

To keep customers happy and coming back, you need to focus on giving them a great experience. Start by offering clear return and refund policies so they feel safe buying from you. Make sure your delivery is fast and reliable, so they get their orders on time. Always reply quickly to their questions or problems, whether it's through phone, email, or chat. You can also reward loyal customers with special discounts or a simple loyalty program. When people have a good experience, they are more likely to leave positive reviews, which helps bring in more customers and grow your business.

10. Track, Improve & Scale

To grow your business in the right direction, it's important to track your results and make improvements. Use simple tools like Google Analytics, Facebook Pixel, and Search Console to see how your website and ads are performing. These tools help you understand things like how many people are visiting your site, how many are buying, and how long they stay. By watching these numbers, you can find what’s working and what’s not. Then you can make changes to your marketing to get better results. Keep testing, learning, and improving so you can grow and scale your business over time.