REPORT

ON

daraz

BBA 2ND SEMISTER

PRESENTED BY HIMA TARAMI
MAGAR,ANCHAN,PARUL,
SUBJECT: ITA

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 Table Of Contain

S.N TOPIC PAGE NUMBER

1 Daraz 3

2 HISTORY 4-5
3 Daraz: 4-5
Revolutionizing e-
commerce in Nepal
4 Benefits of Doing 6-8
Business on Daraz

5 Five Benefits of 8-9

Online Shopping at
Daraz

6 disadvantages of 9
daraz shopping

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Daraz
Daraz Group is a multinational technology company that focuses on e-commerce, logistics,
payment infrastructure and financial services. Founded in 2012 with the backing of Rocket
Internet, it was first launched in Pakistan as an online fashion retailer and later expanded
to Bangladesh, Sri Lanka, Nepal, and Myanmar as Daraz Group after a shift in its business
model. In May 2018, Daraz Group was acquired by Chinese e-commerce company Alibaba
Group.

Bjarke Mikkelsen is founder of Daraz Group and its current CEO

History
Daraz was originally founded as an online fashion retailer in Pakistan in 2012 by Muneeb Maayr
and Farees Shah. Daraz's initial funding came from Rocket Internet and focused on the fashion
sector, but was changed to a general e-commerce marketplace in 2015.

Daraz Group was formed in 2015 as the parent company of Daraz' operations
in Pakistan, Bangladesh and Myanmar[ . In July 2016, Daraz acquired Kaymu, a consumer-to-
consumer online marketplace in South Asia. With this acquisition, it began operations
in Nepal and Sri Lanka.

In September 2015, Daraz secured €50 million in its Series B funding to support the expansion
of operations across its markets. CDC Group, a state-owned Development Finance Institution
(DFI) in the UK, invested €20 million alongside a €30 million investment from Daraz's existing
majority shareholder, Asia Internet Holdings.

In May 2018, Daraz announced it was acquired as a wholly owned subsidiary of Alibaba Group
for an undisclosed amount, as part of Alibaba's expansion into South Asia. Following the
acquisition, Daraz Express, Daraz's in-house digitalised logistics arm was launched in September
2018 to support its growth into key markets. Today, Daraz Express delivers over 60 per cent of
all Daraz orders.

In 2021, Daraz expanded into the food delivery and hyper-local grocery sector through the
acquisition of Bangladeshi startup HungryNaki. In June 2022, Cainiao Network announces that
they will serve as the cross-border logistics provider for Daraz. Cainiao announced that it is
launching two automated distribution centres in Karachi and Lahore.

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Recognition
In 2019, Daraz Bangladesh won the 'Asia One Fastest Growing Brands and Leaders' Award
under the e-commerce category.In 2021, Daraz won the Retail Asia Awards 2021. The company
was honoured with the awards in 'E-Mall of the Year' and the 'CSR Initiative of the Year'
categories.

In 2022, Daraz Pakistan was awarded the 'Employer of Choice for Gender Diversity Awards in
Pakistan' by the International Finance Corporation, a member of the World Bank Group and
Pakistan Business Council.

In 2021 and 2022, Daraz Sri Lanka was awarded the Great Place to Work® Certification re-
affirming the company’s position as a one of the most sought-after employers that attracts and
retains the best talents in the country.

Daraz: Revolutionizing e-commerce in Nepal

As the first e-commerce company to become a part of the mainstream in Nepal, Daraz has
come a long way. It has built a platform for buyers and sellers from across the country to
connect online by making products accessible to more people, especially during the
lockdown.

What started as a start-up in 2018 has grown by 1,500 percent in the past three years. Today,
Daraz’s 700 employees and 1,200 sellers cater to more than 1.5 million customers living in 47
different cities across Nepal. It also contributes to the economy with growing employment
opportunities, investment in logistics, and payment partnerships.

E-commerce was almost an entirely new topic for most people in the beginning”, says Lino
Ahlering, managing director at Daraz, “But with time, more people are trusting online
shopping sites and apps.” With the lockdown, as well, Daraz adapted to being more efficient
and serving people what they needed in times of crisis. Despite having to reduce its
assortment to 20,000 essential products from more than 500,00 during the time of the
pandemic, more people started turning to this app for its convenience and accessibility.

“We played our part in convincing the government that e-commerce can be a great help for
the country’s economy,” adds Ahlering, “And our alert and agile nature helped more people
realize how useful online shopping can be.”

Daraz started as a Pakistan-based online fashion retailer owned by Rocket Internet,

a German company. The company focused on creating e-commerce models all
around the world. Daraz then spread across other countries like Bangladesh, Nepal,

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and Sri Lanka. The company, which used to manage sales for one seller, is now a
platform for thousands of buyers and sellers based in Nepal.

To increase its impact and become one of the first professionalized and wide scaled online
shopping platforms, it also started training sellers and building infrastructures for other
businesses to flutter as well.

It is a sector that doesn’t make a lot of profit but requires tons of investment in the long run.
Daraz managed to start from scratch in terms of the infrastructure it needed to grow in Nepal.
It is creating an atmosphere to show that this is a very promising market that requires
patience. “Our focus was to take something existing, professionalize it and scale it up to make
something much bigger,” says Ahlering, “This massive growth shows how e-commerce
picked up in Nepal.”

Focused on young people looking for jobs, Daraz has been providing full and part-time
employment to around 1,500 people in different parts of the country. With a local team
devoted to giving out the best customer experience to the people, it has adopted an entirely
new working module in a short time. Yet, their biggest investments every year go into
logistics, building infrastructure, and establishing a system. “At present, after laying a
foundation, we are focusing on teaching people about e-commerce,” adds Ahlering.

Daraz is on the verge of becoming a household name. There are more interesting features in
the pipeline to enhance the customer experience and make it even more accessible with the
feedback it has received. They are also expanding their offices in rural Nepal and bringing in
more sellers to reach and promote more local businesses.

Reaching a state of trust was a journey as Daraz was eventually gaining popularity among the
people. An accountable team, reassuring products, user-friendly, and promising delivery
services won the hearts of many. The connection customers had with the market sparked a
desire to keep coming back. Recently, Daraz Livestream was started for young influencers to
represent Daraz to showcase what they do. With that, Daraz also holds yearly campaigns with
extreme discount offers and vouchers that amplify the dialogue and give the customer an
experience they don’t want to miss out on.

The yearly 11/11 sales have become like a festival. It is one day full of product price
discounts, grand sales, banking discounts, and payment partner discounts on all kinds of
products. Not just for customers, but this grand sale has also been helping many sellers to
come back up after being hugely impacted by the pandemic. “We acknowledge our buyers for
their trust and loyalty, and we want to give them something special in return”, says Ahlering.
During this time, around 1,500 employees are at work to make the grand sale possible.

Despite the uncertain times, Ahlering, representing the entire team, stands optimistic and
looks forward to brighter years for growth. “The pandemic has shown me the power of

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teamwork,” he shares, “It was a rollercoaster ride and I’ve learned that in times like this, a
strong, resilient and motivated team is needed, and we are grateful to have that.

Benefits of Doing Business on Daraz

The year 2022 is the golden time to go with online business opportunities. This is the only way
that doesn’t need from you to have a shop and even then you own a digital store online. Daraz is
the mega e-commerce platform operating all over Pakistan that has become a centre of buyers
and sellers. So, the business owners have certain questions in this regard and her we have got
answers. Not only that but we will also guide you here about the benefits of doing business on
Daraz.

 How can I start a business on Daraz?

This is the most important and frequently asked question by those businessmen who want to
digitalize their set-ups. So, starting a business on Daraz is not at all difficult. All you need to do
is:

 Go to Daraz website and get registered

 Provide details while listing your products
 Submit your personal and business information

 Is selling on Daraz profitable?

When you are deciding to shift to some online platform to give a boost to your business, just then
you ask yourself this question. Daraz has now taken a shape of mega online mall where you can
have it all what you think of.

The competition is so high but at the same time being a part of this business flow can make your
set-up better profitable. It is also a great platform to see around the possible selling opportunities,
unique products and then knowing the feedback instantly.

Moreover, the profit also depends upon how fortunate you are to excel in such tough competition
at a marketplace like Daraz. So, for some businesses, it can prove to be profitable while for
others it might be just a source of pocket money.

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  How much can you earn from Daraz?
Taking it into consideration that being fortunate matters a lot to stand out in marketplace like
Daraz, here we can estimate how much you can earn.

According to the details, Daraz deducts a small percentage of commission from the payment of
your orders. Each product commission depends on the type of category it falls under.

On the other hand, Daraz seller account gives you access to millions of customers for your
products at 0% commission rates. Also, Daraz helps your business by assisting with fast and
reliable shipping, professional services & secure and timely payment.

With a little investment and lesser commission, on having the chance to sell your products, you
can earn well from Daraz.

 How can I check my Daraz commission?

You can check how much commission will be charged on your product by going to Daraz
University from your Daraz Seller Account. From there scroll down and click on “Marketplace
Commission Structure” where you’ll find a whole list commission percentage on charges.

 How can I upload my products on Daraz?

Log in to your Daraz Seller Center account and from the homepage. Click on “Products” then
select “Add Products.”

Enter details of your products and description that need to be added. Enter “Submit” on the
bottom of the page and your product will be uploaded!

 Benefits of Doing Business on Daraz

As e-commerce is growing rapidly in the present era, so Daraz is the best example for all new
set-ups or the businesses shifting online.

Although there are numerous benefits of online business opportunities here we have specifically
talked about the benefits of doing business on Daraz. Check out these benefits and reshape your
business in a futuristic way.

 No Registration Fee

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The basic concern for starting a business is having a good amount of investment for the products
and an outlet. Daraz has minimized this thought by giving an online shop without any
registration fee. All you need to do is sign up, get registered, upload products, and start selling in
less than 2 days.

 Sell Across Pakistan

Imagine starting a business and then spending more than the investment in business for just
reaching out to the customers. It is more of a loss than an attempt for profiting a business. Daraz
has made it much easier by introducing you to a huge market where you can sell products all
over Pakistan.

 Reach Millions of Customers

Daraz is undoubtedly the best mega platform where you can reach millions of customers. Not
only that you can sell them your products, but also can have instant feedback for improving the
business. It also helps you to know about the interests of customers in different products and
design the selling strategy accordingly.

 Fast and Reliable Shipping

Daraz provides all of its sellers the facility of fast and reliable shipping of products. All you need
to do is take orders online, pack them up properly, and rest leave it to Daraz. They make sure to
deliver the customers responsibly and at the earliest.

Five Benefits of Online Shopping at Daraz

Online shopping has become the new trend Nepal now-a-days and Daraz Nepal has set up
the trend in our country successfully. Now People are showing their interest to shop through
online because the procedure of online shopping is very much easy and comfortable.
Staying at home, through only one click anybody can shop anything through online avoiding
the disgusting sunlight, jam, crowd and other obstacles. So, who can care to shop in local
market missing these amazing benefits and that’s why online shopping has been very much
popular in our country in these days. But it’s must be pointed to note that the customer has
to ensure the necessary devices with sufficient internet connection for the endless online
shopping. Now let’s see the most valuable 5 benefits of online shopping at Daraz in the
below discussion.

 24/7 Shopping:
The most important facility of online shopping is to shop anything at any time. For the
availability of technology, anybody can shop now from Daraz at any time without any big
effort definitely.

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  Time Saving: If anybody want to save his or her most precious time, he or she
should choose the online shopping without thinking any other option. In this regard,
Daraz can be the suitable choice obviously..

 Unbelievable Price:
As there are no middle businessmen in online market, the price of the products stay
remained in customer’s comfort zone. So, the customers can pay only the legal price of any
product in online shopping. On that note, Daraz nepal provides various facilities to their
online customers like vast discount offers and delicious gift coupons unbelievably.

 Diversity:
The most interesting benefit of online shopping is that online shopping can give you the
sterling taste of eminent diversity for sure. From Daraz, you can enjoy the variety of
products with variable price rates exclusively.

 Minimization of other cost:

The format of online shopping conveys that it can be easily possible to minimize the other
costs like extra price rates of products, travel costs, delivery costs and so on. So, if you want
to grab this marvelous opportunity, you can shop from Daraz Online Shop effectively.

disadvantages of daraz shopping

 Shopping for socializing : One of the amazing aspects of hands-on shopping at
stores, malls and various shopping centers is also a chance to socialize, interact with
different people, meeting your friend circle for shopping, etc. These little experiences
disappear with a full onset of online shopping.

 Hands-on experience : Online shopping takes away the hands-on experience one can
actually get to feel the items of purchase right from electronics to clothing. This feeling
also serves as an assurance about the validity and condition of the object which is just
confined to visual experience through pictures in online shopping portals.

 Hampers sales of retail shops : One of the major disadvantages of e-commerce

which is evident in India today is that the retail shops are losing a large no. of customer
due to an increase in online shopping which is eventually leading to losses in their
business.

 Issues with online payment : Except for the Cash-on-delivery mode of payment, the
majority of the payments are done in e-commerce websites using Credit Cards, Debit
Cards or mobile apps like Paytm etc. This kind of transaction poses a major threat with
regards to the hacking of bank account along with data mining.

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  No immediate assistance : The customer cannot get the benefit of clearing doubts about
the product which has to be purchased in online shopping. There is the presence of sales
assistance in real-actual shopping and helps in building relations with sellers. This human
touch to shopping is removed in e-commerce.

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