Nepal Rapid eTrade Readiness Assessment

The Nepal Rapid e-Trade Readiness Assessment is the fourth such assessment conducted by UNCTAD. The e-commerce industry in Nepal is at a nascent stage and represents an underexplored market. The fast-increasing Internet penetration, especially in the Kathmandu Valley, has opened opportunities for several e-trade niches. Domestic and foreign players are trying to address the needs of the e-commerce ready population, creating healthy competition, in particular among financial service and payment service providers. This marked increase in demand for e-commerce in Nepal is attributed to a growing segment of the population that is young, educated and technology-dependent. Sectors benefiting from this e-commerce development includes retail, mobile operators and payment sectors. Despite these promising trends, e-commerce is currently not achieving its full development potential in Nepal. E-commerce could become a key contributor to economic growth and foreign trade in years to come, thanks to better ICT infrastructure and innovation. The steady rise of Internet use in Nepal has improved accessibility of e-commerce for the population. As of April 2017, Internet penetration was at 58 per cent, from 8 per cent in 2010. Most consumers in Nepal access the Internet through 2G or 3G mobile data services.