Navigating the Nascent E-commerce Landscape in Nepal: The Role of Databases and Evolving Data Privacy

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This article examines the emerging e-commerce sector in Nepal, the potential use of mobile phone number databases for business growth, the significance of e-commerce databases, and the current state of data privacy regulations that businesses operating in this market must consider.

Mobile Phone Number Databases and E-commerce in Nepal:

Mobile Number Databases:
Mobile phone number databases for Nepal are commercially available, often marketed as tools for direct marketing, SMS campaigns, and reaching potential customers.
These lists may claim to offer segmented data for targeted advertising on platforms like social media.
The purported benefits include direct outreach, lead generation, and cost-effective marketing.
However, businesses must exercise extreme caution. Nepal lacks a comprehensive data protection authority, and the legal landscape for using such purchased databases is still developing. Acquiring and using personal data without explicit consent and a lawful basis can lead to legal risks and reputational damage. It is crucial to prioritize ethical data collection practices.
E-commerce Databases:
Nepal's e-commerce market is in a growth nepal mobile phone number list phase, driven by increasing internet and smartphone penetration. In January 2020, there were over 42 million mobile connections, with over 10 million internet users.
The market is attracting attention from investors, with a growing number of registered commercial websites (over 40,000 as of last year's data).
Key players in the Nepali e-commerce market include Daraz, Gyapu, Pathao, Muncha, Sastodeal, Hamrobazar, and Foodmandu.
E-commerce in Nepal encompasses online shopping, payment gateways, online ticketing, and internet banking.
Platforms like WordPress with the WooCommerce plugin are increasingly popular for building online stores due to their ease of use and lower cost.
As of 2024, the e-commerce revenue in Nepal was estimated at US$776 million, with a projected growth rate of 5-10% compared to the previous year. Electronics is the largest product category, contributing 24% to the total e-commerce revenue.
The online share of the total retail market in Nepal was between 0-5% in 2024 and is expected to remain in the same range in 2025.
Challenges for e-commerce in Nepal include the country's terrain, lack of standardized street addresses impacting deliveries, and limitations in online payment options for local consumers without dollar accounts. However, mobile e-commerce is a significant opportunity given the high mobile internet penetration.
Data Privacy Regulations in Nepal:

Nepal's legal framework for data protection is evolving and currently includes:
The Constitution of Nepal 2015: Article 28 guarantees the fundamental right to privacy concerning a person's body, residence, property, documents, data, correspondence, and character.
The Individual Privacy Act, 2075 (2018): This is a significant piece of legislation that aims to protect individual privacy rights and regulates the collection, use, and disclosure of personal information by both public and private entities. It emphasizes obtaining explicit consent before collecting personal data, informing individuals about the purpose of data collection, and ensuring data security. Sensitive personal information, including caste, ethnicity, political affiliation, religious beliefs, health conditions, and sexual orientation, requires written consent for collection.
The Individual Privacy Regulation, 2077 (2020): This regulation further elaborates on the implementation of the Privacy Act.
The Data Act 2079 (2022): This act focuses on the generation, regulation, storage, and publication of data and outlines obligations for data controllers, producers, and users.
The Electronic Transactions Act, 2063 (2008): Contains provisions related to the misuse of electronic records and digital signatures, which can indirectly relate to data privacy in the digital sphere.
The National Penal (Code) Act, 2074 (2017): Includes general provisions related to privacy, such as prohibitions on secretly recording conversations or taking unauthorized photographs.
Directives for Managing the Use of Social Networks, 2023: These directives prohibit users from breaching personal privacy on social media, including unauthorized sharing of private content.