A Comprehensive Overview of the Business Model of Daraz

The business model of Daraz is all about focusing on providing a hybrid marketplace, combining direct sales with third-party vendor offerings. With a strong logistics network and a wide range of products, Daraz has become a leading e-commerce platform. Its business model ensures diverse revenue streams, including commissions, delivery fees, and advertising services, fostering continuous growth.

Aditya Shastri - Trainer at IIDE

Aditya Shastri

Lead Trainer & Business Development Head at IIDE

Updated on: Mar 26, 2025

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Frequently Asked Questions

The business model of Daraz in Nepal is based on a hybrid marketplace approach. It combines direct sales by Daraz itself with a platform where third-party sellers can list their products. This model allows Daraz to offer a wide range of products without holding large inventories. The platform generates revenue through commissions on sales, delivery charges, and premium advertising services for sellers.

The most sold product on Daraz Nepal varies by category and season, but electronics, particularly mobile phones and accessories, often top the sales charts. Daraz ensures it offers a wide selection of electronics at competitive prices, making them highly popular among Nepali consumers. Fashion items, home appliances, and beauty products also consistently perform well.

The Daraz revenue model in Nepal primarily revolves around commissions from third-party sellers, delivery charges, and advertising fees from brands and sellers looking to promote their products on the platform. This diversified revenue stream helps Daraz maintain its profitability while continuing to expand in the competitive Nepali e-commerce market.

Yes, Daraz Nepal has expanded its delivery service to most regions of the country. Thanks to its strong logistics network and partnerships with local courier services, Daraz is able to offer delivery options even to remote areas of Nepal. This is a key component of Daraz's business model, ensuring that it can reach a wide consumer base across the nation.

Yes, one of the key features of the Daraz business model in Nepal is the option for cash on delivery (COD). This payment option has been highly favored by Nepali customers, as it allows them to pay for their products in cash when the products are delivered to their doorstep. This flexible payment option has contributed to Daraz's popularity and high customer satisfaction.

Customer satisfaction is central to the business model of Daraz. The company focuses on offering a seamless shopping experience with easy returns, responsive customer service, and timely deliveries. By integrating customer feedback and continually improving its platform, Daraz ensures that customers have a positive shopping experience, making it a trusted e-commerce platform in Nepal.

The Daraz business model in Nepal includes a return and refund policy, ensuring customer satisfaction. If a product is defective, damaged, or doesn't meet the buyer's expectations, customers can request a return within a specified time frame. Daraz processes refunds through various payment methods or as store credits, depending on the original payment method. This return policy helps build trust and keeps the shopping experience reliable and hassle-free for Nepali consumers.

Aditya Shastri - Trainer at IIDE

Aditya Shastri

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Lead Trainer & Business Development Head at IIDE

Aditya Shastri leads the Business Development segment at IIDE and is a seasoned Content Marketing expert. With over a decade of experience, Aditya has trained more than 20,000 students and professionals in digital marketing, collaborating with prestigious institutions and corporations such as Jet Airways, Godrej Professionals, Pfizer, Mahindra Group, Publicis Worldwide, and many others. His ability to simplify complex marketing concepts, combined with his engaging teaching style, has earned him widespread admiration from students and professionals alike.

Aditya has spearheaded IIDE’s B2B growth, forging partnerships with over 40 higher education institutions across India to upskill students in digital marketing and business skills. As a visiting faculty member at top institutions like IIT Bhilai, Mithibai College, Amity University, and SRCC, he continues to influence the next generation of marketers.

Apart from his marketing expertise, Aditya is also a spiritual speaker, often traveling internationally to share insights on spirituality. His unique blend of digital marketing proficiency and spiritual wisdom makes him a highly respected figure in both fields.