CHAPTER 1: EXECUTIVE SUMMARY

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists
of the exchange of data to facilitate the financing and payment aspects of business transactions.
This is an effective and efficient way of communicating within an organization and one of the
most effective and useful ways of conducting business. There is no time barrier in selling the
products. One can log on to the internet even at midnight and can sell the products at a single
click of mouse. It reduces delivery time and labor cost thus it has been possible to save the time
of both the vendor and the consumer.
We now have access to almost every knick-knack of our daily lives at competitive prices on the
internet. No matter one is educated or illiterate, an urbane or a countryman, in India or in U.K;
all you need is an internet connection and a green bank account. With e-commerce then, you can
buy almost anything you wish for without actually touching the product physically and inquiring
the salesman n number of times before placing the final order. Here is a beautiful picture
depicting how has human life evolved to adapt to the digital world and hence trading over the
internet. As seen, from pizza and potted plant to pair of shoes, we have everything on sale on the
internet available in tempting offers!! Snapdeal.com, Amazon, eBay, Naaptol, Myntra, etc. are
some of the most popular e-commerce websites.

People nowadays want convenience in their shopping. They prefer buying different types of
branded products from a single place and preferably from home. The development of ecommerce
has enabled this facility to people.

Bhatbhatenionline.com is one of the similar online shopping site which comes under Bhatbhateni
supermarket which is one of the oldest supermarkets of Nepal. This site helps the customers to
choose from a variety of products and buy the one that best suits their need and budget by sitting
in front of their computers. This frees the customers from the tiring task of moving from one
place to other in search of goods that they want to purchase.

Bhatbhatenionline features different products that are divided into categories that enable
customers to search for products according to category. It also provides products of different
brands at a single place so as to attract customers who are loyal to different brands.

Bhatbhatenionline.com is the customer oriented website which helps in solving problems of the
customers by providing them with the information about different products. It offers a wide
variety of products like baby care, books, cosmetics, clothing, home interior, jewelleries, kitchen
wares, etc. It provides the quality goods to the customers in the reasonable price.
CHAPTER 2: INTRODUCTION

The process of purchasing products and services over the internet is called online shopping. It
has become very convenient way to shop for all those who have an access to the internet at work,
at home or both. Buying variety of products from your favorite departmental store online is
gaining momentum.
Previously we need to visit the physical store to shop, where we had to travel and take time off
from work but now through online shopping, the shopping experience has become easier,
cheaper, and convenient.
Departmental stores are fast growing now-a-days where people can get variety of products under
the same roof. The concept of online shopping has given an opportunity to people to shop from
any part of the world. The entire product offered by departmental store is clearly displayed on
the site. You can check all the products taking as much time as you want. There is a wide variety
of products in different categories. With the help of the filters and the advanced search options
you can narrow down to your desired products easily.


INTRODUCTION TO THE COMPANY

Bhat-Bhateni is a leading supermarket and departmental store chain in Nepal. With an
impressive growth history, since 1984, Bhat-Bhateni has developed a reputation for continuous
improvements, every day low price and a product offer second to none.

Since 1984 A.D, Bhat-Bhateni has grown from a 120 sq. ft. store to become Nepal's no. 1 retail
sector tax payer with more than 40,000 customers daily. Mr. & Mrs. Min B. Gurung started
Bhat-Bhateni cold store in 1984. This ordinary 'single shutter' store has since transformed to
become Six leading supermarket and departmental stores in Kathmandu, Lalitpur and Pokhara.

Bhat-Bhateni offers a full range of 120,000 products from 750 local and international suppliers.
The product range includes:
Groceries
Kitchenware
o Glassware, plastic ware
o Utensils
o Dinnerware
o Electrical Appliances
Sports & toys
Gifts, cards and flowers
Liquor
Clothing
o Ladies wear, kurthas & sari
o Menswear
o Children wear
o Baby Wear
Electricals
Jewellery (gold & silver)

More than 40,000 people visit the stores daily and benefit from a 7-day return/exchange
policy. With over 2,200 combined store staff, consistent merchandising and assured customer
service is guaranteed.
Bhat-Bhateni Group operates as a private limited company. It has been a successful family
business since the establishment in 1984 and has been the largest tax payer in the retail sector
since 2008 A.D.

BHATBHATENI ONLINE
BhatBhateniOnline.com is an online entity owned and managed by a team of professionals
passionate about bringing quality online shopping services to Nepal. We take great pride in being
associated with Bhat Bhateni Supermarket and Departmental Store (BBSM), Nepals largest
departmental store, as their online extension and strive to give our customers the feel of shopping
at any of BBSMs physical stores.

Through BhatBhateniOnline.com, Bhatbhateni makes every effort to make customers online
shopping experience fast, easy and secure and it is most concerned about providing customers
with the best after sales service. BhatBhateniOnline.com is Nepals fastest growing online
shopping website with over 5000 customers registered since the site went live in April 2011.
Most of the customers have been recommended to try it out by their friends and family and they
have shopped with it repeatedly.



ONLINE OPPORTUNITIES
Online business has become the most convenient method for doing business due to rapid
development in the computer technology. It has become an industry where buying and selling of
product or service is conducted over electronic systems such as the Internet and other computer
networks. Online business is doing the business through electronic medium and which is
available for providing 24 hour service; it has global reach and efficient customer service. It has
changed lifestyle of people and also has saved time and money of people. Doing business
through electronic medium(e-commerce) is cheap medium as it reduces cost i.e. through less
number of employees, no spending on documents and paper, reduces advertising cost etc, saves
time of both buyer and seller and also one can sell his product or customer can buy a product on
a single click.
Bhatbhateni.com is one of the online versions of the popular departmental store of Nepal. The
services of Bhatbhateni are similar to muncha.com. Bhatbhateni offers huge amount of product
and its service charge is also low in comparison to other online stores of Nepal. It provides
discounts of the customers who purchase its products online. If you are not in Nepal then also
you can send gifts to your family from Bhatbhateni.
Bhatbhateni is a customer-oriented firm, which is taking care of the customers need and wants.
Customers can order any product listed on the firms website or offered by the firm of their
choice through clicking on the website. It is trying to satisfy customers by providing quality
facility. Payments can be made by Credit Card/ PayPal/ e-Sewa/ Kumari Bank cards. So, it aims
is to provide customers an online platform to buy variety of products to make their shopping
experience easier and convenient at affordable price.









BUSINESS MODEL
The B2C model of E-Commerce is a model in which businesses sell directly to the customer
where transaction is conducted over the internet. They are the interactions relating to the sale of
goods and services between a business and consumer.
Our business directly deals with customers. Firstly customers order the required product online
and we deliver the products as home delivery. So, business model used is B2C (Business to
Customer). The flow of information between Bhatbhateni and customer is typically through the
medium of internet.




MARKETING STRATEGIES
Marketing strategy is defined by David Aaker as a process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals. Every business is unique.
So, every business needs a unique marketing plan to sustain itself. A thorough analysis of
competition is also carried out to understand how to get the best out of the marketing strategy.
An important aspect of marketing strategy involves identifying and then catering to the needs of
the target customers. Marketing strategies are as follows:
Target the customers
Advertising in social networks i.e. facebook, twitter etc.
Market segmentation.
Expos and expeditions
Print , Audio-visual advertisement
Complimentary offers to valued customers (price discount during festive seasons)
Corporate Social Responsibility
Bhat-Bhateni supermarket also applies different marketing strategies to increase its sales and
increase customer loyalty. It uses outdoor advertising through its vehicles that run across
Kathmandu Valley delivering goods. It also uses online advertising. Promotions are done
through its sites www.bbsm.com which provides information about the supermarket and
www.bhatbhatenionline.com which facilitates online buying and selling. Promotional activities
like sale, discount, etc. are also used.

PAYMENT METHOD
An e-commerce payment system facilitates the acceptance of electronic payment for online
transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce
payment systems have become increasingly popular due to the widespread use of the internet-
based shopping and banking.

Over the years, credit cards have become one of the most common forms of payment for e-
commerce transactions. It would be difficult for an online retailer to operate without supporting
credit and debit cards due to their widespread use. Increased security measures include use of the
card verification number (CVN) which detects fraud by comparing the verification number
printed on the signature strip on the back of the card with the information on file with the
cardholder's issuing bank. Also online merchants have to comply with stringent rules stipulated
by the credit and debit card issuers (Visa and MasterCard). This means that merchants must have
security protocol and procedures in place to ensure transactions are more secure. This can also
include having a certificate from an authorized certification authority (CA) who provides PKI
(Public-Key infrastructure) for securing credit and debit card transactions.

In the meantime, the use of smartcards has become extremely popular. A Smartcard is similar to
a credit card; however it contains an embedded 8-bit microprocessor and uses electronic cash
which transfers from the consumers card to the sellers device. A popular smartcard initiative is
the VISA Smartcard. Using the VISA Smartcard you can transfer electronic cash to your card
from your bank account, and you can then use your card at various retailers and on the internet.

Types of electronic payment system

The different types of electronic payment system can be categorized as follows:

1. Banking and financial payments
Large scale or wholesale payment
Small scale or retail payment
Home banking
Retailing payment card

2. Online electronic payment system
Token based payment
o Electronic Cash
o Electronic Cheques
o Smart cards/ debit cards

Credit Card based payment
o Encrypted credit card
o Third party authorization number

Among these different electronic payment methods, the different ways of electronic payments
made available by bhatbhatenionline.com are:





1. eSewa
eSewa is the Digital Payment Portal of Nepal. With new and unique services like VISA
Prepaid Card, Mobile Wallet, Payout Agent (Cash in & Cash out), Internet Wallet and
many other facilities eSewa guarantees optimum customer satisfaction.



Fig: Working of eSewa

2. PayPal
PayPal is a global e-commerce business allowing payments and money transfers to be
made through the Internet. Online money transfers serve as electronic alternatives to
paying with traditional paper methods, such as checks and money orders.

3. Kumari Bank : Online Shopping through internet banking
Kumari Banks customers who have subscribed to internet banking services can make
payment from their account directly for goods purchased from Bhatbhatenionline.com of
Bhatbhatbhateni Super Market (BBSM). The tie up for payment is first of its kind
between a bank and a supermarket. Banks customers may order the goods they like from
the comfort of their residence and make the payment by choosing the option checkout
using Kumari.

4. Nepal Investment Bank Limited
NIBL offers Online Payment Gateway to the different Merchants. NIBL customers can
make online payments through NIBL eBanking while making purchase through
bhatbhatenionline.com.

SECURITY THREATS AND PREVENTION MEASURES
While carrying out online transactions, different security threats can arise. The major security
threats faced by the company are:
Interception:
It means an unauthorized party has gained access to the network and its resources. The
outside person can be a person, a program or a computing system. Such interception
makes the network less secure and vulnerable to loss and distortion of data.

Loss, damage or distortion of data via hackers
Once internal or external hackers enter the e-commerce system through a gap in the
security defenses, there is chances of destroying, damaging or modifying the system.
Malicious acts include destroying web page, crashing the whole system or changing the
contents of the webpage.

Risk from viruses, Trojan horse and worms
A virus is an executable program that attaches itself to a host program and whose purpose
is to replicate itself via files that are transferred from one computer to another. Viruses,
Trojan horse and worms can damage the whole system. Their entry is mostly
undetectable.

Breaches to personal privacy
Networks contain confidential information regarding the customers and others that are
only accessible by the authorized users. But weak network security can result in access to
personal information by unauthorized persons. This may lead to illegal activities and
privacy issues.

The payment methods used by bhatbhatenionline.com try to make online transactions
secure by adopting different measures given below:

SECURITY MEASURES PROVIDED BY eSewa:


1. DATA AND TRANSMISSION
o eSewa is secured by 128 bit VeriSign SSL Certificate, which means all personal information
like custoomers user id and password, and the information about your transactions are
encrypted before being transmitted through the internet.
o Always visit eSewa by typing https://esewa.com.np in your browser.
o When you deposit/transfer funds from partner banks to eSewa, communication between the
bank and eSewa is carried out via secured VPN connection.
o All your data are stored in state-of-the-art data center.
2. IDENTITY AND PASSWORD
o Use valid Email or Mobile No. and provide proper information while registering for the
eSewa service.
o Use strong password to protect your account. Make a point to change your password
regularly. Never use dictionary words as your password. Make use of numbers and special
characters to improve the strength of your password.
o Beware of phising sites and emails eSewa never sends emails or make calls to you to reveal
your username or passwords.
o If your receive suspicious email/SMS please inform eSewa live support.
o Please check the url of eSewa as https://esewa.com.np whenever accessing the eSewa
through web.
3. WITH MOBILE
o Do not leave your mobile unattended. Please ensure that your mobile's locking features have
been enabled.
o Always use eSewa mobile application to access your eSewa account. Please make sure the
download is done through the official eSewa website at https://esewa.com.np.
o Do not reveal your Mobile PIN (MPIN) to others.
o All messages generated by the mobile application are encrypted in the operator network for
enhanced security.
o Please change your MPIN on regular basis.

SECURITY MEASURES PROVIDED BY PAYPAL:
Privacy to Fight Identity Theft
PayPal is designed from the ground up to be one of the safest ways to send money online. Unlike
other financial institutions, our payments are sent without sharing financial information. In fact,
PayPal never shares your financial information with or sells it to merchants.
How it works.

1. Your sensitive financial information is securely stored on our servers.
2. When you use PayPal to pay online, you provide only your PayPal email address.
3. The merchants/retailers receive payment from PayPal without ever seeing your financial
information.
Feel secure with powerful encryption.
Information is automatically sent with a high level of data encryption.
Stay vigilant with automatic email confirmation.
To help safeguard you against identity theft, every PayPal payment is followed by an email
confirming your transaction.
Monitor your sensitive information.
Online Safety Essentials contains the Identity Protection Guide to help customers avoid
identity theft.

Prevention to Help Stop Fraud

PayPal helps shield you with behind-the-scenes countermeasures so customers can securely send
money online.
How it works.

1. State-of-the-Art Technology
As a leader in security technology, we use state-of-the-art fraud prevention to help stop
cyber crime.
2. 24/7 Transaction Monitoring
Its team of over 2,000 specialists worldwide includes former law enforcement officials who
work with agencies around the world to help protect customers from fraud and identity theft.
Its experts will:
Contact customers immediately if it suspects fraud in their account.
Work with authorities to shut down fraudulent websites.
3. Cutting-Edge Fraud Models
Every transaction is reviewed by industry-leading, proprietary models that help weed out
fraudulent activity.
4. PayPal Verification System
Many account holders have Verified their accounts and successfully established their
identity with PayPal.


CHAPTER 3 : BUSINESS PROBLEM ANALYSIS AND
SOLUTION

PROBLEM ANALYSIS
There are more competitors in the market
Usually they sell them at breakeven or a loss
Import of branded products is more time consuming
Market is currently priced high
Giving more warranty is difficult
Different low price products are made available by competitors
People still have mindsets that goods cost more at supermarkets and hence are reluctant
to shop there.

SOLUTION
Create an on-line site that connects suppliers together
Create a link to more customers
More on-line advertising should be done
Attract broad range of customers by providing variety of products
Track competitive scenario
Compare past and present sales for profitable future
Provide special discounts for existing customers
Long term warranty can be provided for durables
Offer on-line services according to customers needs and satisfaction


CHAPTER 4: WEBSITE DESIGN
Bhatbhateni supermarket has designed a website www.bhatbhatenionline.com to carryout online
transactions. Buying and payment process through this website is given below:
Open your browser (Internet Explorer, Mozilla, Firefox, and Google Chrome) in a computer with
internet facility.
Type www.bhatbhatenionline.com in the address bar.

Click the 'Enter' key in your keyboard. The website will open in a while depending on internet
speed. It will look somewhat like the following:

As you can see, you can either search for the product of your choice from product 'Categories' or
choose a product from the lists of 'Featured Products' or 'Product Highlight'.
For instance, choose a product (eg. Samsung LA22C350D1) from the 'Featured Products' list.
We get the following screen:

You can either Add to Cart to buy the product or Add to Wishlist.

Click on 'Continue Shopping' to continue shopping. Or else, click on 'Check Out'.
Follow the above process to continue shopping with other product/s. You can remove any item
you have added to cart/wishlist by checking the empty check-box below 'REMOVE' option and
clicking on 'Update' to update the changes.
Click on the 'Checkout' button.
Enter your E-mail address and password if you are a registered customer.
If you are a new customer, enter the necessary information in the 'New Customer' and 'Shipping
Details' fields to sign up.
Click on 'Sign Up'.

To log-in, enter the E-mail address and Password you provided during sign-up in the 'Returning
Customer' field.

Click on the 'Log in' button.
Click on 'My Cart' button on the right hand side of the page.
Click on 'Check Out' after updating changes if any.
Edit 'Address Information' field if needed. Also choose the 'Location' and 'Delivery Option'.
Click on 'Proceed to checkout' button.

You will reach the 'Confirmation' page which looks like this:

Enter any relevant information, if you want, in the empty field.
Check the 'I agree to the above terms and conditions' box.
Click on the 'Check Out' button. The following screen appears:

Enter your eSewa User Name and Password (Sign up for an eSewa account if you do not have
one).
Enter the security code.
Click on the 'Login' button. The following screen appears:

Click on 'Confirm'. You will get the following message:

Click on 'Proceed' to continue buying new items.
Click on 'Log off' on the top right hand side of the page to log out once you are done with online
shopping.