Most online businesses in Nepal don't start with a website. They start with a Facebook page, an Instagram account and a phone number on WhatsApp. That's fine. The trouble comes six months later, when orders grow, a payment goes missing, or the page gets restricted and the business has nothing it actually owns. This guide walks through starting small without boxing yourself in.
Step 1: Pick something people already search for
Before buying stock, check demand. Type your product into Google with 'Nepal' or 'price in Nepal' after it and see what autocomplete suggests. Search the same thing on Facebook Marketplace and Daraz. If lots of sellers exist, there's demand; your job is to be clearer, faster or more trustworthy than them. If nobody sells it, ask why before you assume it's an opportunity.
- Products with steady demand: clothing, cosmetics, mobile accessories, home goods, gifts, books
- Services that sell well online: tuition, design, repairs, event services, consulting
- Harder categories: fresh food (spoilage), electronics (returns and warranty), anything bulky (delivery cost)
Step 2: Register properly
You need a registered business to open a merchant account with eSewa or Khalti, run a business bank account and stay on the right side of the E-commerce Act. Most small sellers start as a sole proprietorship (registered with the Department of Commerce, Supply and Consumer Protection or the local ward) and get a PAN from the Inland Revenue Department. If you plan to raise investment or have partners, a private limited company is cleaner. Our company registration guide covers the difference.
| Registration | What it's for | Where |
|---|---|---|
| Firm (sole proprietorship) or company | Legal identity of the business | Department of Commerce / ward, or Office of Company Registrar |
| PAN (and VAT once turnover requires it) | Tax identity; needed for bills and payment gateways | Inland Revenue Department |
| E-commerce listing | Required for businesses selling online under the E-commerce Act 2081 | Department of Commerce online system |
| Ward / local business registration | Local tax and permission to operate | Your ward office |
Step 3: Decide how customers will pay
Cash on delivery is still the default in Nepal, and you should offer it at first. But COD means returned parcels, cash you have to chase from delivery partners and no money upfront. Add eSewa, Khalti and bank QR (Fonepay) as soon as you have a merchant account. Many sellers give a small discount or free delivery for prepaid orders, which cuts fake orders sharply.
Step 4: Sort delivery before you sell
Inside the valley, delivery partners like Pathao, Upaya or local courier companies typically charge NPR 100–200 per parcel. Outside the valley it's more and slower. Ask each partner about COD settlement time (how quickly they pay you the cash they collect), return charges and what happens to damaged parcels. Those three answers matter more than the base rate.
Step 5: Social page first, website when it pays
A Facebook page and Instagram account are free and that's where Nepali buyers already scroll. Start there. A website becomes worth it when you're answering the same questions in Messenger fifty times a day, when you want to rank on Google, or when you need a checkout that works at 2am without you. A simple online store in Nepal costs roughly NPR 50,000–1,50,000 to build.
| Stage | Channel | Rough monthly cost |
|---|---|---|
| Testing (0–30 orders/month) | Facebook + Instagram + WhatsApp | NPR 5,000–15,000 in boosts |
| Growing (30–300 orders) | Add Google Business Profile, catalogue, Meta ads | NPR 15,000–50,000 in ads |
| Established (300+ orders) | Own website with eSewa/Khalti, SEO, email/SMS | Ads + NPR 20,000–40,000 SEO |
How much money do you need to start?
Excluding stock, a lean start is possible on NPR 20,000–50,000: registration and PAN, a logo, product photos, packaging and a first month of boosting. People who start 'without investment' usually resell other suppliers' products or offer a service. That works, but your margin is thin and you depend on someone else's stock.
Mistakes we see new sellers make
- Using stolen product photos: buyers notice, and Meta can reject ads for it
- Hiding the price ('DM for price'): many people just scroll past
- Boosting posts with no clear offer or audience
- Not writing down every order, return and COD settlement
- Building an expensive website before proving that people will buy
