Project Paper: Daraz.

com
Course: MIS 205
Faculty: MBR1
Date: 11th December
Name ID
Anika Anjumi Kabir 1510779030
Shakhir Ahmed 1512345030
Sakib Istiak 1510659030
Sheikh Nusrat Arah 1512395030
Farah Tasnim Arpa 1430324630
Introduction

Daraz is becoming the leading online marketplace for Bangladesh. Here, in Bangladesh, people
only knew about Amazon business model where buyers meet sellers and exchange goods. Daraz
introduced the Amazon business model in Bangladesh. Daraz is one of the five ventures of
Rocket Internet GmbH in Bangladesh. They try to follow the effective internet projects from
other innovative countries like United States and reproduce their strategies in developing
markets. Daraz Bangladesh Limited is rigorously providing B2C type on selling which no other
E-Commerce portal does in Bangladesh. Daraz was launched in late September 2013 and has
become the 4th e-commerce site after OLX, Ekhanei and ClickBD. They mainly focus on its
buyers and sellers. Darazs clients are the sellers who sell their products on website. Daraz
focuses on the sellers as Darazs revenue comes from its seller’s sales. If Darazs sellers sell more,
they make more money, if the sellers sell less, Daraz makes less money. The company tries to
obtain only the sellers who sell quality product and original products as they look forward to
offer their buyers the original and quality products at the most competitive deals, which is
usually lower than the Market price.

MISSION

Their mission is to become the world’s largest Internet platform outside of the United States and

China. The company identifies and builds proven Internet business models and transfers them to

New, underserved or untapped markets where they seek to scale them into market leading online

Companies. Rocket started in 2007 and has now more than 30,000 employees across its network

Of companies, which are active in more than 110 countries across six continents?

VISION

At Daraz, they believe the Internet is going further and faster into daily life than anyone

imagined. Our goal is to capture the largest possible share of consumer online spending in our

markets.
GOAL

Daraz wants to provide the best quality products at the most competitive price. Daraz believes to

Introduce the most latest and demanding products for its customers.

Range of Service/Product

Daraz is, first and foremost, an online marketplace. One can browse through categories like

Clothing, Footwear, Jewelry, Watches, Mobiles & Accessories, Jewelry, Books & Media,

Electronics, Footwear, Watches, Mobiles, Computers, Electronics, Home & Living, Health

&Beauty, Toys, Kids & Babies, Books & Media, Sports & Outdoors and various other

Categories. When a customer sees something they like, they click on the product and view the

Details that include pictures, descriptions, payment options and shipping information. Customers

also can search for their desired products by using keywords in no time. Daraz provide advanced

search option in which Customers can narrow down their search and shop comfortably.

Just as one can buy almost anything on Amazon, they can do it the same in Daraz. If one wants

to sell as a business, they need to enlist in Daraz as a Daraz seller via which they get a Daraz
estore.

When one sells an item on Daraz, they pay a certain percentage of the final sale price to

Daraz. There is no listing fee except this commission on sales. Daraz operates an online

marketplace enabling Seller to sell basically anything online.

Key Business Focus

Daraz is already one of the giants of e-commerce and with the addition of Fatafati Friday, they
are set to make waves and host the biggest sale online in Bangladesh ever. Their main focus is
website, customer’s location, communication and access. Daraz is also working hard to ensure
that their customers get the best quality products.
E-business Model of Daraz

Daraz Bangladesh Limited follows the Amazon business model of buying and selling on a single

platform where the sellers sell their products on Daraz website in exchange of commission

percentage on each and every sale. Daraz is a B2C (business to consumers). Daraz is an online

marketplace where buyers and sellers meet and exchange goods via Daraz portal. Buyers from

Dhaka enjoy the facility of payment via cash on delivery while the buyers outside Dhaka

throughout the country also can enjoy the home delivery service by pre-payment through mobile

banking as well as cash on delivery. Daraz provides sellers the free advertisements of their

merchandises through social media, newsletter and Google Search Engine Optimization (SEO).

Daraz also provides offline marketing to the sellers such as print media, billboards and etc.

which is currently free of cost.

Through Daraz, sellers can sell their products very easily as Daraz takes full accountability of

photo shooting the sellers‟ products, uploading and monitoring them on their website and also

delivering them to the buyers. The company pays the sellers on a monthly basis i.e. the sellers

give the products to Daraz on credit and receives the payment at the end of the month.

Barriers of E-business in Daraz

Compared to other countries, Bangladesh is a late entrant in E-business. Yet, Daraz.com.bd

observed tremendous growth within a short time. E-business can be the next major driver of
Economic development but there are some issues that need to be addressed. Otherwise, this
sector would never reach its full potential.

• Developing delivery channel to the customers

• Affordable and un-interrupted internet all over the country

• Improving the online transaction system

• Online fraudulence

Management of E-business in Daraz

As Daraz entered new markets, there was the foresight to appoint a management team that would
oversee the ventures as a group, rather than relying on individual co-founders in each country
with little cohesion between them. Tech in Asia that growth in Bangladesh and Myanmar has
been a lot faster when compared to the same trajectory in Pakistan. The fact that Daraz is now
operating as a consolidated group helps, as well as the fact that they’ve adopted best practices
from other ventures within Rocket’s family. The startup has also, from day one, had a clear focus
on all product categories rather than a niche vertical, such as fashion.

E-Business Model
Daraz has an e-business model similar to Amazon. First and foremost, the company sells goods
directly to customers online. The online retail line of business includes those products sold by
Daraz as a traditional retailer. A percentage of products are offered to buyers through Daraz’s
website but small amounts of inventory are kept of the products in warehouses. For products not
available in their warehouse, a long stream of communication and transaction takes place to
deliver the product to their customers. This is why Daraz takes between 3 to 5 days to deliver
products. In addition to direct sales, Daraz provides a platform for other retailers to sell products
to buyers. Products sold through Daraz’s partner retailers are often less common items or those
with a higher purchase price, allowing Daraz to avoid holding slow-moving inventory that could
dilute profit. Further e-business model details are provided below.

Drivers of e-business
Daraz acquires profound knowledge of e-business concepts and explores the solutions available
on the market for having a competitive advantage. The most significant factors driving and
inhibiting the intent to pursue e-Business by Daraz are the perceived benefits, external pressure
and organizational readiness. Perceived benefits are the perceptions of managers and the level of
recognition by decision-makers of the relative advantages that e-business can provide to their
organization. Daraz categorizes its perceived benefits in two ways, direct advantage and indirect
advantage. The direct advantage are the reduction in transaction costs due to online operations
and efficiency improvements as faster workflow and reduction in manual paper handling saves
both time and money. Indirect benefits are the better customer relationships, efficiency in
operations and so on. On the other hand, external pressure has become a significant determinant
for the intent to adopt e-business. The major concern is the competitive pressure which forces
Daraz to either be competitive or go out of business. Finally the implementation of e-business
can only be successful when sufficient resources exist and are managed wisely. As Daraz is a
large firm, it has sufficient resources, greater bargaining power with vendors and can easily
achieve economies of scale. They also have expert personnel in their workforce and a CEO (Mr.
Muneeb Maayr) with outstanding knowledge of IT driving the implementation of e-business.

Management of e-business/e-commerce
Daraz categorizes their products into several segments. These are men’s and women’s fashion,
electronics (e.g. Phones, computers and home appliances), home & living, sports & fitness,
beauty & health and babies/kids. These segments help customers to directly look for the products
they need. It further conducts advertising campaigns by promoting their website. The Daraz
Black Friday promotional event is a flagship event for Daraz globally. With discounts up to 70
percent on genuine products, Daraz offers a wide array of products ranging from fashionable
clothes and accessories, health and beauty products, electronics and household items. Moreover,
after customers confirm their purchase online, Daraz sends them a confirmation text to notify
them that their order has been received and awaits processing. Then the customer care
representatives call the perspective customers to confirm their order and later send them another
confirmation text stating that their order has been processed and is will be delivered.

E-business revenue model

Value proposition
Daraz entices customers with several value propositions. Some of them are listed below

i) One stop shop experience - With over 100,000 products in the store, Daraz already has the
widest selection of goods across all categories, and the company is working on expanding
product categories for its customers. Daraz ensures all products listed on the website are 100%
genuine, making it a one-stop solution for all customer needs.

ii) Payment facilities - Daraz provides its customers with the widest range of safe payment
solutions, with Cash On Delivery (COD) offering unparalleled convenience, along with bank
transfers and debit/credit card payments. To ensure customers have all payment solutions, Daraz
has also availed Bkash payment facilities by which customers can make payments via mobile
phones. In addition to that Daraz is ensuring super-fast deliveries by expanding its logistics
network.

iii) Return policy – Daraz has an elite feature of 7-days no questions asked where customers can
buy a product and if they are unsatisfied with it, they can return it within 7 days and Daraz would
not require any justification. The returns are free and customers are entitled to a full refund.

iv) FAQ section – Daraz is embellished with a highly sophisticated FAQ section which addresses
numerous queries of customers and helps them make informed decision. This section covers all
the problems associated with purchasing from Daraz and helps them understand the procedures
of payment, delivery and return.

Revenue Model
The major revenue models of Daraz comprise the following:

•Daraz charges sellers to list items on its platform. Daraz is a platform where these vendors can
promote their product and facilitate sales. In return Daraz receives a slight fee for each product
being displayed.

•Daraz also receives a commission fee based on volume for enabling or executing transactions.
Daraz charges a commission to the vendors for every sales being facilitated through its website.
The revenue is generated through the transaction fees paid by the customers. Daraz acts as a
market place operator providing the customers with a platform to place their transactions.

•Daraz has given some special features to vendors which they can avail by paying an extra cost.
These are basically advertising options like making a product as featured product, banner ads
displaying discounted products and so on. Vendors can showcase their shops and hence have
more sales.

Online marketplace structure

Characteristics of the product/service – Daraz offers a one stop shop experience for its
customers. It has a wide range of product offerings and each category of products are further
sub-categorized as brands, sizes, price, and gender and so on. Daraz brings the widest selection
of electronics, fashion, home appliances, kid’s items and more in Bangladesh and have those
shipped directly to customers’ homes or offices. After clicking on each product, the detailed
information is displayed about it enabling customers to make an informed purchasing decision.
Daraz is constantly expanding their product range to include the latest gadgets, fashion styles and
new categories of product lines.

Market segment – Daraz’s market segmentation is divided into three categories. Geographic
segmentation, Demographic segmentation and Psychographic segmentation.

•Geographic segmentation – Daraz delivers products to every corner of Bangladesh. Orders are
delivered within 3-5 days in Dhaka and within 5-8 days outside Dhaka. Daraz also has operations
in Pakistan, Myanmar and Sri Lanka.

•Demographic segmentation – Daraz offers products of men, women and children. It facilitates
possibly every age group looking for a product online. Products can be filtered based on price
and brands to engage people from different income groups and make a purchase. It also
categorizes products based on family size where separate categorizes are listed for bachelors,
couples and a large family.

•Psychographic segmentation – Daraz divides its products based on interests and lifestyle of
customers. It has specific “sports and fitness”, “home and living”, “computer and gaming” and
several other categorizes for people of a certain lifestyle. This allows Daraz to market product in
a more focused manner. It also profiles customers based on their buying behavior and creates
several packages and offers tailor made of each individual customer.
Revenue generating strategy
•Increase New Customers - Daraz marketing and sales activities and promotional campaigns are
quite extensive. Their advertisement is numerous websites are making more and more potential
customers aware of their site and urging them to visit the site. Afterwards, a good amount of
visitors are turning into buyers.

•Offer special discounts – Daraz’s exclusive discounts such as “Black Friday”, “Mega Deals”,

And “Flash Sales” are quite persuasive strategies to keep customers engaged to their site and buy
a product. These promotional campaigns boost their revenues

•Daraz has also opened registrations for its sales program named DForce. The program allows
anyone and everyone to partner with Daraz and resell their products to their friends and family,
mainly those who aren’t online yet or have limited access to internet. Daraz charges a fee for
putting their product on the company website a charges commission upon sales.

Marketplace structure
Daraz is an intermediary based online marketplace. It brings sellers from different locations from
across diverse product ranges and buyers from all over Bangladesh, together in a unique digital
marketplace. Through Daraz’s logistics network, it caters to shoppers from around the country,
delivering goods right at their doorstep. It showcases products from a wide scope of sellers from
across the country, catering to the needs of customers. Customers have the liberty to compare a
product sold by a number of different vendors and choose one which is best suited to your needs
and budget.

E-Business Platform:
Enterprise resource planning is business (ERP) process management software that
allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services and
human resources.
Daraz.com.bd is a cutting edge e-commerce platform which brings the latest local and
international goods to customer doorstep .They offer a wide selection of products from
renowned brands in Bangladesh with a promise of fast, safe and easy online shopping
experience. From electronics to fashion, there is bound to be something for shopping in
Daraz Bangladesh.

Depending on your organization's size and needs there are a number of enterprise
resource planning software vendors to choose from in the large enterprise, mid-market
and the small business ERP market. The top small business ERP vendors includes
names like NetSuite, Exact Max, Epicor and Syspro. 

 A CRM system is something that allows you to store, manage and use customer
relationship data to improve your business in specific ways. One of the most important
goal of CRM is build a strong relationship with customer /clients and taking a great
place on their mind for future.

Daraz.com always careful to their customer satisfaction they provide strict buyer’s
protection policies ensure no risks attached offering finest experience of online
shopping. Their customer can ensure legitimacy of product with genuine reviews by
satisfied consumers.

Daraz also attract their customer with several offers like nationwide shipping and FREE returns.
It is very popular among the customer. They got attracted because of these offers. Daraz refers to
commercial activities performed over computer and related technologies mainly though networks
such as intranet.
Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. 

Supply chain management involves coordinating and integrating these flows both within
and among companies. Web data mining is a new technology that can find valuable
model and information in mass data. With the development of the Internet, e-
commerce has a strong trends, application of web-based data mining in e-
commerce has become popular in e-commerce industry.
Daraz maintain a strong supply chain management and developed data meaning
process for their any kind of e-commerce solution.
Internet is a global computer networking system providing a variety of information and
communication facilities, consisting of interconnected networks using standardized
communication protocols. An extranet is a private network that uses Internet
technology and the public telecommunication system to securely share part of a
business's information or operations with suppliers, vendors, partners, customers, or
other businesses.

An extranet can be viewed as part of a company's intranet that is extended

to users outside the company. It has also been described as a "state of mind" in which
the Internet is perceived as a way to do business with other companies as well as to
sell products to customers.

EDI (Electronic Data Interchange) is the transfer of data from one computer system to
Another by standardized message formatting, without the need for human intervention
EDI permits multiple companies possibly in different countries to exchange documents
electronically. Data can be exchanged through serial links and peer-to-peer networks,
though most exchanges currently rely on the Internet for connectivity.

Daraz refers to commercial activities performed over computer and related technologies
mainly though networks such as intranet, extranet, and the internet to streamline improve
and extend business operation.

Web 2.0 is the current state of online technology as it compares to the early days of the
Web, characterized by greater user interactivity and collaboration, more pervasive
network connectivity and enhanced communication channels.
Blog is a regularly updated website or web page, typically one run by an individual or
small group, which is written in an informal or conversational style.
Feed is a Web document that is a shortened version of a Web page that has been created
for syndication. Feeds usually end in .xml or .rss.
A widget is an element of a graphical user interface (GUI) that displays information or
provides a specific way for a user to interact with the operating system or an application. 

 Daraz give the opportunity to keep yourself ahead of the fashion curve, anyone can
visit daraz blog to stay update with latest in-fashion trends and new arrivals on different
stores on their website.

Web Content Management is the process of authoring content, be it textual,

visual or aural, and posting that content to a website, often through a Web
Content Management System. There are a number of key components that
need to be considered when tackling content management online, such as how
a website is laid out and how to organize content into various categories for
easy navigation, just to name a few. Sure, the quality of the website content
is important, but if visitors can't easily access that content, a company will
risk losing that traffic for good. Content marketing helps businesses prepare and
plan for reliable and cost-effective sources of website traffic and new leads. Think about
that anyone can create just one blog post that gets a steady amount of organic traffic,
an embedded link to an e-book or free tool will continue generating leads for you as
time goes on.

Daraz develop their organization with a way to manage digital information on a website
through creating and maintaining content without prior knowledge of web programming
or markup languages. They also managing web content effectively for establish a useful
business applications for their enterprise, producing insights for decision-making and
delivering results, as well as value.
Digital strategy for e-business

E-business strategy and how it supports corporate strategy

Daraz’s e-business strategy is one of the chief reasons of their success. According to the co-
founder of Daraz, Mr. Summit Singh, with over 45 million internet users in Bangladesh, their
amount of daily orders is more than three thousand at present. Being concerned about consumer
facility, it has established its own customer care center where almost 20 customer managers are
engaged in customer service 7 days a week from 9am-11pm. To ensure delivery on time, it has
its own delivery network which is a first in e- commerce business in Bangladesh. “Basically
Daraz is not like other e-commerce sites, we have created an open internet platform here, which
is a first in Bangladesh where consumers will get all necessary products, but surely original
products from new and specific brands, and we don’t sell any kids of replica or used goods
through our site” said their marketing head.

These statements clarifies that Daraz’s main focus is their genuinely and quality of product
offerings. Additionally they strive to provide excellent customer service. Gaining customers trust
is a very challenging task of any online retailor. Therefore the customer service is among their
top priorities. Achieving these e-business goals will guide Daraz towards their business goal
which is to be the leading online retailor in the world.

E-channel structure

Daraz sells its products through its website and its mobile app. In their website, they offer
products and promote the products through various Internet marketing channels. Daraz doesn’t
have a physical presence, so the internet is their only channel to reach customers. As millions of
smartphone users access the internet on their mobiles, the Daraz mobile app presents an alternate
sales channel. The mobile app supersedes the website in certain departments. Once the app is
installed, it stores data on the mobile and the same actions can be performed with fewer taps,
whereas using the website involves launching the browser, typing a web address, signing in and
then shopping. Additionally, as most of the data is pre-loaded on the mobile device, apps load
faster and require smaller data packets, thus helping customers save on mobile internet charges.

Swot Analysis:

Strengths

• Better website among competitors: Daraz Bangladesh has better website among competitors
like pickaboo.com and clickbd.com
• All brand new products: Selling all brand new products here. Daraz Bangladesh does not sell
any second hand or refurbished goods.

• Deals with renowned brand: Daraz Bangladesh is very popular for coming up with deals from
various renowned brands like Samsung, Bata, and Apex.

• Brand warranty: A lot of brands offer authorized warranty to customer who buys from Daraz
Bangladesh.

• Fast delivery: Delivery among customer all over the country within three days.

• Strong collaboration among departments: Daraz Bangladesh has a very strong collaboration
among departments. Like delivery to content department they communicate fast and solve
problems.

• Easy and free register: It is free and easy for seller to register with Daraz Bangladesh.

• Delivery in whole Bangladesh: Daraz Bangladesh delivery their product all over Bangladesh no
matter in cities or villages.

Weakness

• High turnover rate: The turnover rate in Daraz Bangladesh is high due lower chance of career
development and small pay scale.

• Low brand recognition: A lot of people are not aware of the brand named Daraz Bangladesh.
They mostly know bikroy.com or ekhanei.com

• No refund on specific products: In some products like books, some clothing they do not offer
refund.

• Daraz is only focusing on online marketing. The company should focus on some ATL
marketing and BTL advertising.

Opportunity

● Emerging online market: The online market in our country is still an emerging market with a
lot of potentially.

● Take order from outside Bangladesh: Daraz Bangladesh can take order directly from outside
Bangladesh and delivery them to a destination inside Bangladesh like UpoharBD.com

● Gift delivery service: Daraz Bangladesh can also take gift deliveries orders like cakes or cards
or flowers.
● Emergency delivery: They are currently not offering emergency delivery service like same day
delivery but they can since there is a demand of it.

Threat

● Upcoming native competitors: Upcoming native competitors can be a big threat. As a lot
competitors are coming up.

● International giants: International giants like Amazon or EBay can come to our market and
take over it if Daraz Bangladesh cannot make a strong position in the market.

● Political instability: Bangladesh is a country with unstable political history. So political

incident can harm the business in times.

● Lower internet availability: As a third world country internet is not yet widely available
everywhere in our country so Daraz Bangladesh is still out of reach of a lot of potential market.

Competitive Threats:

•Tax advantage – One primary advantage customer’s gain by shopping in Daraz is they can
avoid paying VAT. Customers can buy the exact same products of different retail stores from
Daraz by avoiding VAT. To combat these challenges, some organizations are willing to
continually cut prices to compete with the online stores. On the other hand (according to The
Daily Star) the Bangladesh government is set to introduce 4 percent value added taxes on all
online sales. As a result, Daraz will lose its tax advantage. Daraz can respond to this threat by
offering more discounts on their products and offering better convenience in terms of delivery.
This will add more value to their products.

•Emergence of new competitors – In the last few years, numerous new competitors entered the
online market. Companies like Bagdoom, Bangla shoppers, 24bdmart, Chaldal, Ajkerdeal,
Pickaboo, Aponzone and several others experienced rapid growth in this field and is encouraging
a lot of other businesses to go online. This will certainly also decrease profitability of Daraz over
time, as well as test their sustainable competitive advantage. Customers will gain additional
bargaining power which can put Daraz under pressure regarding prices, delivery, features, and
quality and other factors. Suppliers will also gain similar bargaining power as they will have a
larger range of customers to supply raw materials, components and other services. To deal with
this threat, Daraz can rapidly build out warehouses and distribution centers. This will optimize its
efficiency in the delivery of products. Daraz can also implement highly advanced software that
helps it set inventory levels and even begin packing orders based on predictive algorithms. As a
result, they will achieve a competitive edge in the market.
E business security:
Information systems security more commonly referred to as InfoSec, refers to the processes and
methodologies involved keeping information confidential available and assuring its integrity.

In information system there are some major threats such as-

Virus: is a type of malicious software program that, when executed replicates itself by modifying
other computer programs and inserting its own code. In contrast, a computer worm is stand-alone
programming that does not need to copy itself to a host program or require human interaction to
spread. It also can be spread by opening email, clicking on a executable file, viewing an infected
website ad, through USB etc. there are also some famous viruses like- DOS, MELISSA,
TROJON etc.

Hacking: has been a part of computing for 40 years. The process of attempting to gain un
authorized access to computer resources. There are types of hacking-

- Website hacking

- Network hacking

- Ethical hacking

- Password hacking

- Computer hacking etc.

Buffer overflow: in computer security and programing, a buffer overflow is an anomaly where a
program, while writing date to a buffer, overruns the buffer boundary and over writes adjacent
memory locations.

SQL injections: is a code injection technique, used to attack data-driven applications, in which
nefarious SQL statements are inserted into an entry field for execution. In 2012 study it was
observed that the average web application received 4 attack campaigns per month, and retailers
received twice as many attaches as other industries.

Phishing: is the attempt to obtain sensitive information such as username, passwords and credit
card details, often for malicious reasons by disguising as a trust worthy entity in an electronic
communication.

According to the 2013 Microsoft computing safety index released in February 2014, the annual
worldwide impact of phishing could be as high as 5 billion.
It’s typically carried by email spoofing or instant messaging.

Above all the most likely to cause server damage is virus and hacking and SQL injections.

Prevention:

To prevent all this problems any company could follow some steps such as –

• Protect with password

• Design safe system

• Conduct screening and background check

• Provide basic training

• Avoid unknown email attachments

• Hang up and call back

• Think before clicking

• Use virus scanner and keep all software up to date

• Keep sensitive data out of the cloud

• Stay paranoid

• Install quality antivirus

• Prefer daily scans.

Daraz uses a DDNS security which is a method of automatically updating a name server in the
domain name system. The DDNS system helps Daraz in many ways like getting the actual
address or other information when needed. The end users get an allocation of IP address. The
assigned addresses may either can be fixed or my change from time to time.

 
Conclusion:
Daraz is one of the biggest e-tailor in Bangladesh. They get their customers all over across the
Bangladesh selling good quality international and national product. And also they delivered it in
their customer’s doorstep within the time. They also provide some major customer facilities also.
We hope that the thorough analysis that we have done in this report can make a better
understanding of the E-business system of Daraz.

We tried to complete all the five criteria that have been given us to fulfill this report which also
helped us a lot of understanding the E- business system better.

Online shopping is getting more popular say by day. By understanding the customers need for
online selling has become more challenging also. Today’s customers is constantly looking for the
best online shop, best offers, and best service to keep up with it every online based business has
to be more accuracy in their E-business system to get more customers and create a better
customer relationship.

The END