If you have been searching for how to start an online store in Nepal, you have probably found a lot of generic advice written for the US or India. Nepal is different: your customers pay with eSewa, Khalti or cash on delivery, your prices are in NPR, and the tax office wants a PAN — and a VAT registration once you cross the threshold. This guide walks you through the real, practical steps to launch a store in 2026, from registration and payments to delivery and your first Dashain sale.
How to start an online store in Nepal: the 7 steps
Starting an online store here is not complicated, but the order matters. Get the legal and payment basics right early and you avoid headaches later. Here is the path most successful small sellers follow.
- Pick what you will sell and how you will source it
- Register your business and get a PAN (and VAT if required)
- Set up local digital payments and cash on delivery
- Build your store and product catalogue
- Sort out delivery and couriers
- Price for NPR margins and VAT
- Launch around a season like Dashain or Tihar
Step 1: Decide what to sell
Start narrow. A focused store — handmade pashmina, organic honey, phone accessories, a single restaurant menu — is far easier to market than a general shop. Check whether you can reliably source stock or produce it yourself, and confirm whether the category needs any special permits (food, cosmetics, and imported electronics each have their own rules). Validate demand cheaply first: post in a Facebook group or on Instagram and see if people actually ask to buy before you invest.
Step 2: Register your business, PAN and VAT
You can sell informally for a while, but to issue proper bills, work with couriers, and look trustworthy to customers, you should register.
Business registration
Most small sellers register a sole proprietorship at the Department of Cottage and Small Industries (or the municipal ward/local body, depending on your business type and size). This gives you a registration certificate you will reuse everywhere.
PAN (Permanent Account Number)
Get a PAN from the Inland Revenue Department (IRD). A PAN lets you issue tax invoices and is usually required before payment gateways and couriers will fully onboard you. The IRD's online portal handles most of the process.
VAT
VAT registration is mandatory once your turnover crosses the IRD threshold, and it is required from the start for certain categories regardless of size. If you are VAT-registered, you charge 13% VAT and file returns. If you are not yet required to register, you can stay on PAN-only billing — but track your turnover so you register on time. When in doubt, confirm the current threshold and your category directly with the IRD or a local accountant; the rules are updated periodically.
Step 3: Set up local payments
This is where most foreign store advice falls apart. Nepali shoppers want options they already trust, so offer several:
- eSewa and Khalti — the two most recognised digital wallets; many customers expect at least one.
- FonePay — QR payments linked to bank accounts and apps, widely used in shops and increasingly online.
- IME Pay — popular, especially with customers who also use it for remittance.
- Bank transfer — useful for higher-value orders; share your account or a connected QR.
- Cash on delivery (COD) — still the default for a large share of buyers, particularly outside the Kathmandu Valley. Expect it, but be aware of return-to-origin losses on COD orders.
To accept wallet and QR payments online you typically apply to the provider as a merchant, which is why your PAN and registration from Step 2 matter. Offer COD alongside digital payment so you never lose a hesitant first-time buyer.
Step 4: Build your store
You do not need to hire a developer or learn to code. A no-code platform lets you set up your catalogue, prices and checkout in a day. This is where Saauzi fits Nepal well: it is a no-code platform built for SMBs here, so you can launch an online store, run a POS for your retail counter or restaurant, and accept local digital payments like eSewa, Khalti and FonePay from one place — instead of stitching together tools designed for other markets. If you also have a physical shop, having your online store and POS share the same products and stock saves you from selling something online that you already sold over the counter.
Whatever you use, make sure your store shows prices in NPR, displays clear delivery areas, and has product photos shot in good daylight — photos sell more than copy.
Step 5: Delivery and couriers
Inside the Kathmandu Valley, same-day or next-day delivery via local courier services or your own rider is realistic. Outside the Valley, you will rely on courier networks and bus-parcel services, with longer timelines. A few practical tips:
- Set delivery charges by zone (inside Valley vs. outside) and state them on the product or checkout page.
- Confirm COD orders by phone or message before dispatch to cut down on fake or abandoned orders.
- Pack well — road conditions are hard on parcels, and a damaged first order kills repeat business.
Step 6: Price for NPR margins and VAT
Work out your true cost per item including sourcing, packaging, courier, payment fees and any COD return risk, then set a price that protects your margin. If you are VAT-registered, decide whether your displayed price includes the 13% VAT or adds it at checkout, and be consistent. Keep simple records of every sale from day one — it makes filing and any future VAT registration far less painful.
Step 7: Launch around a season
Timing your launch or your biggest push around Dashain and Tihar can give you a strong start, since this is when household spending on clothes, gifts, electronics and food peaks. Prepare stock and delivery capacity in advance — these festivals also strain couriers, so order cut-off dates and honest delivery promises matter more than usual. New Year and wedding season are secondary opportunities worth planning around.
Common mistakes to avoid
- Skipping PAN/registration, then getting blocked when a gateway or courier asks for it.
- Offering only digital payment and losing the large COD-preferring audience.
- Ignoring VAT until turnover quietly crosses the threshold.
- Launching with weak photos and no clear delivery information.
Your next step
Starting an online store in Nepal comes down to seven things: choose a focused product, register and get your PAN (and VAT if needed), turn on local payments plus COD, build a clean store, sort delivery zones, price for real NPR margins, and launch around a season. Do those in order and you will avoid the mistakes that stall most first-time sellers.
When you are ready to build the store itself without code, you can set up your catalogue, POS and local payments with Saauzi and start selling — try it free at saauzi.com.
Comments
Be the first to comment.