Assessment of Current Buyer Behavior in Market
Online activity is concentrated in Kathmandu and a half-dozen other cities, with relatively little internet penetration in remote areas, although this is changing with more users accessing the internet via mobile phones. While relatively little business activity is conducted online, the market is growing. Many businesses rely on the internet when dealing with foreign partners. The COVID-19 pandemic has resulted in an increase in digital/online business activities.
While e-commerce is in its infancy in Nepal, it is growing quickly. Credit/debit card transfers, transfers from e-banking websites, and digital wallets are becoming more prevalent, especially in urban areas though Nepalis who do not have a dollar account cannot make payments using foreign currency. Visa entered the Nepali market in 2025, aiming to expand digital payment solutions and support the growth of online commerce.
Local E-Commerce Sales Rules & Regulations
In June 2020, the Ministry of Industry, Commerce and Supplies completed a draft e-commerce Bill. Following other Ministries’ review, the bill will be presented for cabinet approval and then presented to Parliament to enact into law.
Embassy Nepal is not aware of any sites promoting B2B e-commerce. Like all forms of e-commerce in Nepal, B2B e-commerce is in a nascent stage. While B2C is picking up pace, secure electronic payment systems are still being built up. Deliveries generally operate based on calling up the client and requesting directions to the delivery address.
Local eCommerce Business Service Provider Ecosystem
E-commerce websites for consumers in urban areas, particularly the Kathmandu Valley, are burgeoning. The online food delivery Foodmandu’s website is popular with both expatriates and local residents, with competitors Foodmario and Pathao offering similar services. Sastodeal and Daraz are emerging online shopping portals. Over the pandemic, a number of e-commerce service-providers have also extended their services to include grocery and food delivery services, such as the ride-hailing service Pathao.
Online Payment
Websites facilitating electronic commerce are mostly based outside Nepal, where credit card verification services are readily available. Credit card transfers and e-banking transfers are accepted, but many Nepalis do not have dollar accounts and cannot make payments in foreign currency. Foreign exchange is tightly regulated and not freely available. Nepali retailers have few options available for online payment, although many companies now claim to offer mobile payment solutions for domestic purchases. Many e-commerce services operate via cash payments at the point of delivery.
Mobile E-Commerce
Almost 60 percent of Nepalis have access to the internet, with more than 95 percent of users accessing it through mobile phones. There are opportunities for retailers to promote mobile e-commerce.
Digital Marketing
Few firms in Nepal use digital marketing, but as more Nepalis acquire smart phones, opportunities in this field are growing.
Major Buying Holidays
Nepal’s biggest holidays – Dashain and Tihar – are separated by about three weeks. Their timing fluctuates, but Dashain usually falls in late September or early October, while Tihar is in late October/early November. Many Nepalis return to their home villages during this time.
Social Media
Nepalis are embracing social media. Embassy Nepal’s combined Facebook page and Twitter account have nearly 8 million followers – significantly more than the circulation of all daily newspapers combined. Over 70 percent of Nepal’s population is under the age of 35, which suggests that the number of social media users will continue to grow. The Nepali government’s recent attempt to regulate social media—including mandatory registration with authorities, having a local point of contact to manage compliance and complaints, and obligatory content takedown—led to a temporary ban on unregistered platforms on September 4, 2025. This move, along with broader grievances and socio-political tensions, contributed to the September 8–9, 2025 protests in Nepal, which escalated into widespread unrest and led to the ban being lifted on September 9, 2025.