From shampoo to sofas, shirts to fresh fruit, and phones to electronic gadgets—almost everything is now available at the click of a button.

Nepal’s e-commerce market has exploded, with hundreds of businesses operating and an estimated transaction volume of billions of rupees, primarily driven by platforms like TikTok, Facebook, Instagram, and WhatsApp. Yet despite the boom, hundreds of online sellers remain unregistered, operating outside formal oversight and taxation.

The new registration requirement is Nepal’s first major step to regulate its rapidly expanding e-commerce sector and protect consumers from fraud and unethical practices that have flourished in an unregulated digital market.

Now, they have just days left to comply.

According to the Department of Commerce, Supplies and Consumer Protection, e-commerce entrepreneurs must register with the government by July 18 or face a penalty of up to Rs200,000.

The mandate follows the implementation of the E-commerce Act 2025, which came into force on April 15. The law gives all existing and new e-commerce businesses a three-month registration window through the department’s online portal.

The goal is twofold: to regulate Nepal’s fast-growing digital marketplace and ensure consumer protection amid increasing complaints of fraud and unethical practices.

Since issuing a notice on July 2, the department has received 37 applications, but only one business has been approved.

“Registration is now mandatory, whatever the business size is,” said Bharat Prasad Acharya, the department’s information officer.

“Anyone selling goods or services online must register on our portal and submit the required documents. This applies even to sellers using social media platforms.”

According to the law, online businesses must provide details such as their platform name, business registration number, office address, and the name of the registered body. They must also specify whether their business model is platform-based or listing-based and designate a contact person responsible for handling customer grievances.

Crucially, each e-commerce website must establish a mechanism for receiving and resolving consumer complaints to operate legally.

“If any business is found unregistered during market inspections or following a consumer complaint, they may be fined Rs200,000,” said Acharya.

The law also includes foreign e-commerce companies. Any international business selling goods in Nepal, such as Amazon or similar platforms, must establish a local office or representative unit to operate.

“If a Nepali consumer orders a product from an international online seller and that company is not registered, we can initiate an investigation upon receiving a complaint,” said Acharya. “They, too, are subject to Nepali tax law.”

The new act defines e-commerce as the buying and selling of goods and services through digital platforms. However, it excludes sites that advertise or promote products without processing transactions.

Importantly, the law mandates that intermediary platforms—those that connect sellers with buyers but do not directly sell goods—sign formal agreements with vendors. These agreements must exist in both written and digital formats.

The act also enables micro and cottage industries to sell through online platforms, encouraging broader digital participation.

To ensure transparency, businesses must update any changes in product details—such as price, availability, or specifications—within 24 to 48 hours.

The law also strengthens consumer refund rights. If the delivered product or service differs from its advertised design, image, weight, warranty terms, or country of origin, the buyer is entitled to a full refund.

Sellers cannot deny refunds if products are found to be defective, delivered late, or inconsistent with agreed specifications.

For years, Nepal’s e-commerce space operated in a legal vacuum. Muncha.com, one of Nepal’s first online shopping platforms, launched decades ago, but no specific e-commerce law followed—allowing the sector to expand unchecked.

The absence of regulation led to widespread consumer dissatisfaction. Buyers often received wrong or damaged products, struggled with refunds, and faced price discrepancies with no legal recourse.

Consumer rights activists have long called for legislation, arguing that the delay has created fertile ground for abuse.

“The new law sets the foundation for accountability and order,” said a consumer rights advocate. “It’s late, but it gives us a framework to protect buyers and ensure the credibility of the digital economy.”

As Nepal’s online marketplace continues to grow, the law aims to build trust, which will benefit both consumers and responsible sellers in the long run.