Internship Report

On

“Daraz Bangladesh Limited – A New Era of Bangladesh E-commerce.

– Change your shopping Style.”

Supervised By:
Md. Tamzidul Islam
Assistant Professor
BRAC Business School,
BRAC University,Bangladesh

Submitted By:
Nur Ibna Saeed
ID-09104133
BRAC Business School

Date of Submission
31 Aug 2016
 Letter of Transmittal

Dear Sir,

Subject: Submission of Internship report.

I would like to submit my report titled “Daraz Bangladesh Limited a New Era of Bangladesh E-
commerce – changed your shopping style.” prepared as a part of the requirement for BBA
program of BRAC Business School.

I have worked in Daraz Bangladesh Limited from the very beginning as a founding employee.
Working in this report is a great learning and opportunity to share my experience as I have
implemented my theoretical knowledge in practical work life. I hope you will find this report
systematic and a reliable source of data.
.

I would like to take this opportunity to thank you for all the support and guidelines that you have
provided, which I hope to continue getting in the future. Meanwhile, I will be available if you
have any query.

Sincerely yours,

Nur Ibna Saeed

BRAC Business School
ACKNOWLEDGEMENT

At the beginning of preparing this report, I would like to convey gratitude to the Almighty Allah
for his blessing in completing this report. This internship report is an accrual of many people’s
effort. For this, I am obliged to a number of people who helped me to organize this report and for
their kind opinions, suggestions, instructions and support and appropriate guidelines for this
report.

I have received endless support and guidance in preparation of this report from numerous
sources. I would like to take this opportunity to thank them all.

First of all, I would like to thank my Internship Supervisor Md. Tamzidul Islam, Assistant
Professor, and BRAC University Bangladesh for his continuous guidance and assistance in
preparation of this report. Her invaluable advice has helped me a lot in writing this paper. I am
immensely thankful to him for the support he has provided during my Internship period.

Next, I would like to express my heartfelt gratitude to my organizational Supervisor, Team

Mates and colleague of Daraz Bangladesh Limited. They directed me towards the right
information and support me to prepare this report.

Their valuable contribution has facilitated the successful completion of this report to a great
extent.
Executive Summary

In this era of technology people are getting closer and faster in term of regular activities and info
trader activities. E-commerce is such a platform where merchants and customers come in a same
platform to purchase and sell in visually and get the physical product.

Daraz Bangldesh is one of the venture of Rocket Internet GMBH, which is the largest venture
incubator outside China and USA. This platform has become popular and trusted name in online
Bangladeshi market. This platform initially start to work with local retail brand but day to day
they are moving to B2B and B2C market. They are become sole distributor of some foreign and
international brands. They start their operation of delivering the product in Dhaka but now they
delivery COD and Non-COD around the country. Daraz is a chain online brand they are working
in Pakistan, Myanmar, Sri-lanka, Nepal apart from Bangladesh. So the regional plan is to make a
global supply chain across the Asia and so forth.

In Daraz any authentic online or retail distributor can become seller and expand another channel.
Using this platform seller can sale very easily. Daraz Bangladesh create an online store, take the
product, take picture, develop content, upload them, promote them by push and pull marketing,
take orders from customer, verify and source the product from the seller, pick and pack the
product and send it for delivery, collect the cash and disburse the payment to seller account. All
these activities are done for some commission.
As a startup Daraz Bangladesh is getting 100% fund from its parent company. But the revenue
from Daraz Bangladesh regular sales increasing daily and they are expecting to meet the break-
even with in 2019.

In Bangladesh the whole e-commerce industry is in growing stage. Customer are changing their
buying style and becoming more and more dependent on technology. But as we all know
Bangladeshi market is very different with its unique customer base. The whole sector are facing
different challenges as like Daraz Bangladesh. But all the obstacle can be overcome by giving
better service and diversified service for shopping experiences.
1 CONTENTS
2 The Organization.................................................................................................................. 7
2.1 Introduction.................................................................................................................... 7
3 About Rocket Internet........................................................................................................... 8
4 Mission & Vision................................................................................................................... 9
5 Objective.............................................................................................................................. 9
6 E-commerce & Bangladesh Market......................................................................................9
6.1 Internet consumption is accelerating.............................................................................9
6.2 Age Groups................................................................................................................. 10
6.3 Geographic Trends......................................................................................................11
7 Market Mix.......................................................................................................................... 12
7.1 Product........................................................................................................................ 12
7.2 Price............................................................................................................................ 13
7.3 Promotion.................................................................................................................... 14
7.4 Place........................................................................................................................... 16
7.5 People......................................................................................................................... 16
7.6 Physical Evidence.......................................................................................................18
7.7 Process....................................................................................................................... 19
8 Functional Overview........................................................................................................... 20
8.1 Overall Operation Process of Daraz............................................................................20
9 Daraz Operational Organogram..........................................................................................21
10 Sales Strategy................................................................................................................. 23
11 Job as Operations Manager (Outbound & 3PL)..............................................................23
11.1 Description of the job...................................................................................................23
11.2 Key responsibilities of Operations Manager.................................................................23
11.3 Challenges and Experience from my Job....................................................................24
11.4 Recommendations that can develop Daraz operations................................................24
12 Project & Events with Daraz............................................................................................25
12.1 Summary..................................................................................................................... 25
 12.2 Description, Success & Limitations of the Events........................................................25
12.2.1 Mega Mobile Week -2015.....................................................................................25
12.2.2 Robi Fatafati Friday..............................................................................................27
12.2.3 Bangali New Year Campaign 2016-.....................................................................28
13 Methodology................................................................................................................... 29
14 Limitation of the Report...................................................................................................29
15 The Main Body................................................................................................................ 30
15.1 Chapter 1..................................................................................................................... 30
15.2 Analysis of Daraz Bangladesh Limited........................................................................31
15.2.1 Feasibility Analysis...............................................................................................31
15.2.2 Overview of E-commerce Industry in Bangladesh................................................31
15.2.3 Major Players of E-commerce of Bangladesh.......................................................32
15.2.4 Comparison with the Competitors.........................................................................32
15.2.5 Financial Feasibility Analysis................................................................................33
15.2.6 Benefits of Daraz Bangladesh Limited (as E-commerce)......................................33
15.3 Analysis of Market Growth...........................................................................................34
16 Recommendation............................................................................................................ 35
17 Conclusion...................................................................................................................... 37
18 Appendix......................................................................................................................... 39
19 REFERENCES............................................................................................................... 40
2 THE ORGANIZATION

2.1 INTRODUCTION

E-commerce refers to the buying and selling of products or services over electronic network
combining a range of process such as Electronic Data Interchange, Electronic mail, World Wide
Web, Internet Applications and Network Applications. Everyday e-commerce is improving the
efficiency and effectiveness of business, government and nonprofit organizations. At today’s
date, people lack time. They try to save it as much as possible and that’s where e-commerce
shows its charisma by saving both the most important things which is time and money. From an
online marketplace people can buy and sell their products rather than visiting physical
marketplace.

Bangladesh with more than 160 million population has a great potentials but lot to penetrate. E-
commerce trend is not that much old in Bangladesh. E-commerce start in Bangladesh in late 21 st
century. Click-BD is consider to be one of the first platform. Bangladesh ICT ministry has taken
so many initiatives to make E-commerce popular such as secure payment gate way, A2I service
etc. We will consider 2013 was a mile stone for e-commerce in Bangladesh. So many
multinational e-commerce brand entered in Bangladesh market and the local platform also gain
strength financially.
[Link] is one of the leading and most popular marketplace platform of Bangladesh. Daraz
mainly a combined form of inventory managed and seller managed platform. A replica of
Amazon model where a seller can do both inventory and drop-ship. This platform has introduce
both B2B and B2C types of selling all over Bangladesh. Daraz is giving local brand to work on
online platform. They strictly working on local established and emerging brands of fashion and
general merchandising.
Daraz started their operation in August 2013. It’s one of the 7 th venture of Rocket Internet
GMBH. Other Venture of Rocket Internet are Foodpanda, Kaymu,Lamudi,Carmudi, Jovago and
Everjobs. Apart from Rocket Internet venture there are some other local and foreign e-commerce
platform currently renowned in e-commerce sector e.g. Ajkerdeal, Bagdoom, Ekahnei,
[Link].

In this report I have tried to look into the operations of Daraz Bangladesh Limited, how it is
trying to provide the most diversified product lines for its customers.

3 ABOUT ROCKET INTERNET

With the belief of “We build companies” Rocket Internet GMBH is world’s one of the fasted
growing startup venture incubator. This Company was founded by three brothers known as
SamwerBrothers. The company’s Head quarter is situated in Berlin, Germany. They hire people
around the globe who has the potentials as like as an entrepreneur. They have ventures in more
than 50 countries. Rocket mainly target developing countries who has emerging markets like
Bangladesh, Cambodia.
Some of their ventures based on category are-
 Food & Grocery – Hellofood, Foodpanda, Delivery Hero
 Fashion – Lamoda, Zalora, Jabong, Namshi
 General Merchandising- Lazada, Jumia, Daraz
 Others – Fabfurnish, Home24, ZipJet

Rocket Internet started their journey in 1999 and already they have 120+ market leading
companies in 50+ countries. In late 2014, Samwer Brothers valued Rocket Internet as a multi-
billion dollar company. The company’s market value was approximately 8 billion euros in April
2015.
Rocket Internet has some successful investment story in different venture like Groupon , eBay,
Facebook, Linkedin, Zynga etc. Company has some core investor like some Russian investor,
Swedish investment firm and J.P Morgan, these investor invested around 4.5 billion dollar in the
year 2012 to 2013.
Rocket has divides its business based on region like APICIG (Asia Pacific Internet Group), AIG
(Africa Internet Group), Middle East Internet Group. Africa is Rocket’s strongest business zone.
Jumia and Kaymu is the most popular business model there. In that region Rocket is known as
the biggest online platform.
Daraz is one of the venture of APICIG. Daraz run over in three countries apart from Bangladesh
Pakistan and Myanmar. Daraz has established in Pakistan and become most popular online
fashion marketplace. Now they are planning to open this brand in Nepal and Srilanka. Our
neighbor country India has several established venture like Jabong, Fabfurnish, Foodpanda.
Rocket has a multinational cultural in 120 countries with more than 25000 employees.

Bangladesh is one of the fastest growing market of rocket in last 2 years rocket launched 7
venture including Daraz.

4 MISSION& VISION

Rocket has a vision to become largest internet platform outside USA and china. They identify the
demand in an emerging market and implement different internet business model in developed
countries. Rocket specialties is they build company faster than anyone can imagine a company
which established in 2007 is currently working in more than 5 continent in 50+ countries with
more than 120 venture and has more than 25000 employees. They have are largest knowledge
sharing center. Daraz start in Bangladesh to be the biggest online platform in the country.

5 OBJECTIVE

The initial goal of this report to give a glimpse of Daraz and the e-commerce sector of
Bangladesh. The market situation and future of the sector.
6 METHODOLOGY
From my regular experience I have made this report but I collect some data from different
external and internal sources. According to those source I can category those sources-
 Primary Source –
 On the job Experience
  Global Report
 Information from other departments
 Financial reports
 Operations Reports
 Global Operational ware-room report

 Secondary Source
 [Link]
 [Link]
 Rocket Internet Souce
 [Link]
 Different publication from Dailies and Internet

7 LIMITATION OF THE REPORT

The limitations I have face during making this report

 The data and information related to the topic was not easily available.
 Secondary data was not available
 The information I have used mainly form 4 months back things can be changed.

8 E-COMMERCE & BANGLADESH MARKET

Before we jump on the detail operation function of Daraz let us discuss first Bangladesh market
situation. Here two major component of market will be discussed, age group and geographical
demand of this market.

8.1 INTERNET CONSUMPTION IS ACCELERATING

The internet subscriber base in Bangladesh currently stands at48.37 million (June, 2015
BTRC) and the population of the country is 162,680,508as of Thursday, May 19, 2016,
based on the latest United Nations estimates. Thus, the average internet penetration rate is
 29.07% and the number of Facebook users is more than 10.2 million. Every year, these
numbers are increasing and it is creating a huge opportunities for E-commerce business
in Bangladesh.

8.2 AGE GROUPS

Through of the research conducted by Kaymu (Venture of Rocket internet, e-commerce site in
Bangladesh) and the facts collated, it can be observed that the population falls between the age
brackets of 25-34 years account for thehighest number of users, with the 35-44 and 18-24
brackets falling at second and third places respectively. One of the most significant reasons for
this observation is the fact that people falling in the age bracket of 25-34 years are more inclined
towards technology and its usage. These people are at the forefront of technological revolution
and are more open towards online shopping. Therefore, lots of young and matured people are
involving E-commerce business and they want a better delivery chain so that they can
successfully deliver the products. Thus, there is a huge demand for a well-established courier
company.

Percentage of User by age

70%
60%
50%
40%
30%
20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65+

*Interest of people in e-commerce among various age brackets in Bangladesh. Source from
in-house survey of Rocket Internet Bangladesh.
8.3 GEOGRAPHIC TRENDS
Dhaka being the capital city as well as the metropolitan city of Bangladesh, prevails the
list of yearly e-commerce activity in the country with 35% of total traffic, closely
followed by the second-largest city and main seaport of Bangladesh, Chittagong at 29%.
Gazipur City, the neighboring city of Dhaka which is less populated as compared to
Dhaka and Chittagong, stands at third place with 15% of the country’s total e-commerce
activity each year (according to the market report and Kaymu research). Other cities with
the highest inclination towards e-commerce following Dhaka, Chittagong and Gazipur
City include Narayanganj and Sylhet respectively. Therefore, a huge number of orders
are being ordered per day in many e-commerce sites and there should be at least a strong
logistic support to make the orders successfully delivered.

More than 80% of the e-commerce transactionsare carried out in three major cities of
Bangladesh. 

o Dhaka o Savar
o Chittagong o Narayanganj
o Sylhet o Comilla
o Gazipur

Percentage of E-commerce transaction in

Major cities
40%
35%
30%
25%
20%
15%
10%
5%
0%
Dhaka Chittagong Gazipur Narayanganj Sylhet

*Statistics showing geo-targeted e-commerce trends in Bangladesh and An e-commerce

transaction is completed when a user adds a product to the cart and then confirms the order.
*Source from Daraz Bangladesh & Kaymu Bangladesh orders hit map.
8.4 ANALYSIS OF DARAZ BANGLADESH LIMITED
I have tried to analyze Daraz Bangladesh Limited’s market prospects and feasibility of Daraz in
terms of competition, challenges faced, customer base and overall industry analysis. The
financial analysis of Daraz was not properly done because of lack of financial information due to
confidentiality issues. The data I acquired was enough to give me an idea of Daraz’s future
financial prospects too.

8.4.1 Feasibility Analysis

In studying the feasibility analysis, I have given an overview of Bangladesh e-commerce
industry, the major players of the e-commerce industry, the role of Facebook and other social
media. The online sellers and buyers and the challenges will also be measured.

8.4.2 Overview of E-commerce Industry in Bangladesh

Internet penetration has increased in Bangladesh. People are getting more use to it. Now in
Bangladesh we have more than 3 core internet users. Currently we have around 1000 e-
commerce portal and 25000 facebook shops. Every day the market is growing. At this moment e-
commerce market get 20000 net orders per day. Apart from those traditional FMCG and fashions
houses considering this e-commerce as a new channel. So we can say it’s a very good
opportunity for Daraz Bangladesh to capture the market.

8.4.3 Major Players of E-commerce of Bangladesh

Daraz is an online marketplace where sellers sell their products to buyers through Daraz website.
Daraz can be compared to physical marketplace, only difference is, in a physical marketplace,
you have to visit different shops located at different floors for different products and in Daraz
website, you can visit different e-stores for different products with a click of the mouse.

Daraz has some competitors who are also trying hard to grab the opportunity to get settled in this
emerging market. Ajker Deal, Bagdoom, Rokomari, Pikaboare, Esho and some of the other
popular e-commerce websites who are also becoming popular.
Ajker Deal- This is the largest local online platform they are actually e-bay model. This website
basically start their journey to sales different types of deals. Now they use to have around 1000
net orders per day.
Ekhanei is a free classified online advertisement website. Ekhanei is venture of Grameenphone
Limited which is providing a mobile based online buying and selling platform. They are also
generating revenue through advertisement streaming.
Bagdoom This is another local platform funded by an Investment firm. They are direct
competitor to Daraz Bangladesh. They almost get the same number of orders.
Pikaboo This platform is mainly focusing on electronics brands of Bangladesh. As a new comer
they already grab customer’s attention.

8.4.4 Comparison with the Competitors

If we compare Daraz with other e-commerce site/platforms we can say other websites are
following most of the Rockets ventures. Like Hungary Naki was the first market player of its
type but when Foodpanda entered the market they start booming. Same thing goes for the general
merchandising and fashion. Daraz has better setup for content, marketing and distribution. They
have the global expertise and financial backup from the parent company. The strongest part of
Daraz Bangladesh they have their own fleet which cover the more than 50% of their distribution
demand.

8.4.5 Financial Feasibility Analysis

Daraz Bangladesh Limited is a startup company which is being funded by the parent company
Rocket Internet. Daraz Bangladesh Limited identified the breakeven period of four and a half
years. As they set their business model based on Amazon, it encourages small and big sellers to
sell through a common online market based platform. Daraz is generating revenue through the
sales of products from its websites. Sellers sign a contract paper by agreeing on commission
based sales. Those commissions from each and every sale from Daraz website are earning money
for the company.

Since its inception Daraz is ever growing. The way Daraz is increasing its seller number and
order number; I feel it would be a matter of time for this company to reach its break even.
8.4.6 Benefits of Daraz Bangladesh Limited (as E-commerce)
The benefits of e-commerce are many and many. Some of them include:
 24X7 operations: Round the clock operation is an expensive proposition in the brick and
mortar world while it is natural in the click and conquer world.
 Global reach: The net being inherently global, reaching global customers is relatively
easy on the net compared to the world of bricks
 Cost of acquiring serving and retaining customers: It is relatively cheaper to acquire new
customers overt the net. Thanks to 24X7 operation and its goal reach. Through innovative
tools of push technology to retain customers, loyalty with minimal investments.
 An extended enterprise is easy to build: In today’s world every enterprise is a part of the
connected economy; as such one needs to extend your enterprise all the way to suppliers
and business partners like distributors, retailers and ultimately end customers. Internet
provides an effective (often less expensive) way to extend the enterprise beyond the
narrow confines of the own organization. Tools like enterprise resource planning (ERP),
supply chain management (SCM) and customer relationship management (CRM), can
easily be deployed over the net permitting amazing efficiency in time needed to market,
customer loyalty, on time delivery and eventually profitability.
 Dis-intermediation: Using the net one can directly approach the customers and suppliers,
cutting down the number of level sand in the process, cutting down the costs.
 Improved customer service to clients: It results in higher satisfaction and more sales.

8.5 ANALYSIS OF MARKET GROWTH

The internet has opened up a new horizon for commerce, namely e-commerce, which has been
rapidly growing in the developed world as an impressive manifestation of globalization for the
last decades. The fast expansion of e-commerce is now becoming a major opportunity for
international and local trade development in least developed countries like Bangladesh, where
internet facilities and the technological infrastructure in few years have become widely available.
The Bangladeshi government has, as a part of the ambition to become a middle income country
by 2021, recognized the importance of online solutions. The commitment is to extend coverage
of broadband network to 30 percent by 2015 and 40 percent by 2021. This is a crucial
acknowledgment in order to achieve economic progress as well as extend the infinite
possibilities of international trade.
The governmental vision of turning Bangladesh digital has induced companies along with
consumers to take on digital challenges and the interest in ICT-technology is growing at a
momentous pace.
The economic and demographic prospect of Bangladesh is the guarantee of a strong foundation
for a relatively new ICT-sector and e-commerce industry. Based on economic stability, political
maturity and openness, Goldman Sachs has realised the potential by naming Bangladesh as one
of the “Next Eleven” – a group of countries that have the prerequisites and potential to become
major economic players in the twenty-first century.
65% of the total poulation of 160 million in Bangladesh are under the age of 35. This does not
only make the country one of the largest (8th based on population) but also one of the youngest
in the world. Every year, an average GDPgrowth around seven percent and increasing
urbanization is contributing to a larger middle class with higher disposable incomes – the ideal
target group for e-commercial activities.

9 MARKET MIX

9.1 PRODUCT
Marketplace like Daraz is always a product centric model. Customer can search and browse
through category e.g. Fashion, Mobile, Watches, Home Appliances, Jewelry, Electronics Device,
Health & Beauty or with SKU. Daraz provide a detail visual about the product to the customer.
Whenever a customer like to see a product s/he can see the 360 degree photo online and get
product detail. The product assortments are done by customer choice, based on different
campaigns and promotional offers. The whole website and mobile app have presented all the
products such a way that customer will feel like shopping in a mall visually.
 Illustration: Graphical Interface DARAZ Website

Except grocery and perishable goods customer can buy everything from Daraz. The enlistment of
sellers are very easy. Any merchant who sells different product has physical shop or not can be
a part of this visual giant marketplace but registering as a seller. Daraz has a proper seller
management back end system Known as Seller Center. Where a seller or merchant can manage
their visual store, enlist product, boost up any SKU for promotion, push his/her shop banner as
well. Daraz maintain a proper content guild line. To upload any product on the platform
merchant needs to handover product sample for photo-shoot with an additional charge.

9.2 PRICE
Price is another component of Market mix. Price that Daraz ask on website is decided and
managed by the vendor or merchant with the help of their key account manager (KAM). Daraz is
a platform which earns revenue from sales commission. Before enlisting seller, merchant/vendor
Daraz make an agreement with them regard commission is going to be charged. The commission
are charged based on category and merchants profits margin. Each order and successful delivery
to the enduser count as a sales and Daraz logistics team collect the money and deduct their
commission form the collected amount. So Daraz is basically a intermediate between seller and
end user.

Pay the rest step-01

of the Daraz offer
payment to price for
seller products

Daraz deduct Step-02

it's
commission The products
as per the send to
agreement consumers

Daraz Collect
the money
after delivery
from
consumers

9.3 PROMOTION
All the ventures of Rocket Internet are promotion focused. So typically Daraz is also a venture
whose core focus is on online promotion. Their Marketing team does different types of SEO and
use different social media platform such as facebook, youtube, tweeter and others. They spend a
huge portion of budget on online marketing. Apart from that they did different type of Celebrity
Endorsement like- signing Mushfikur Rahim as brand ambassador. Campaign based program
like Fatafati Friday with Robi. To reach its target group it has put its presence to all most all
possible online sectors.
 Illustration 1: online rank of [Link] (globally and locally)

Daraz has maintained its presence on Facebook, due to the heavy use of Facebook (Social
Network) locally. Daraz sponsors ads on Facebook daily that reach outs 10 million Facebook
users every day.
 More than 3 million likes

Illustration 2: Facebook Page of Daraz Bangladesh Limited

Other than Facebook Daraz also making its mark on Twitter, and on Instagram as well. They are
also using personal email database to reach 1 million (approx.) customers. Daraz is using the tele
network as well, by sending sms promotions to gain its potential sales possibilities.

As a new comer in the market Daraz has covered its promotional needs on online platforms.
However Daraz is still no actively participating in Above-The-Line (ATL) or Below-The-Line
(BTL) communication channels.

9.4 PLACE
Like any other global successful venture Daraz has two type placement in market. One is visual
like in mobile app and online web site [Link] where customer mainly buy or place
order. Another one is their logistics and delivery chain through that customers get product.

9.5 PEOPLE
As a new startup Daraz started their business with 04 people only. Now they have a team
with more than 180 people. Rocket Internet maintain a cross culture where all the
employees work in an open floor. Their employees from different countries and different
backgrounds come under a roof top and build a better culture.

Vendor Management: Total personnel 26 (Hunter +incubator + Key Account Manager)

1. Senior Vendor Manager: 3

2. Vendor Manager: 23
 Key Account Manager – 8
 Longtail Account Manager – 15

A. D- Force (Field Force): Total 45 Personnel

 Head of Field Force: 1
 Supervisor for Field Force: 3
 Field Force Operative: 40
B. Accounts and Finance : 08
 Head of Finance-01
 Billing Manager-01
 Collection Executive -04
 Payment Disbursement Executive -02
C. Marketing Team – Total 8 Personnel

 Marketing reporting – 2 Member

 Social Media Integration – 3 Member
 Partnership Development – 1 Member
 Offline Promotion Support – 1 Member
 Fashion Identity Project – 1 Head of the department
D. Content Co-ordinatio – 2 Personnel
E. Content Team – 20 Personnel
F. Photography Setup – 5 Setups
G. Operation
 Head of Operations
 Operation Manager (Outbound)-
1. In-house
a. Hub Manager-04
b. Outbound Executives-09
2. Third Party Logistics (3PL) Executives-02
3. Fleet Manager-01
a. Pickup Rider- 15
b. Delivery Rider-29
 Operation Manager (Inbound)-
1. Warehouse Manager-02
a. Warehouse Executive-03
b. Operators & Picker-06
2. Market Place Executives-08
Daraz offer competitive packages based on market. The recruitment has a unique process in
Rocket Internet’s ventures. They hire freshman or little experienced with a dynamic
characteristics. After recruitment the employees goes under rigorous on the job training for next
6 months after joining. By completing the successful period they become permanent employee of
the company with an increment.

9.6 PHYSICAL EVIDENCE

As a part of the component of marketing mix Daraz is always focus about the brands they are
working with all the big brand and small brands has online banner in Daraz website. Every
merchant’s physical shop there is an x-banner of Daraz with different promotional offers.

Few popular brands and highest sales volume merchants of Daraz-

i. Bata xx. O2
ii. Yellow xxi. Occult
iii. Apex xxii. Sports World
iv. Samsung xxiii. Body Shape
v. Huwai
vi. Myako
vii. Shimizu
viii. Sony
ix. Dorjibari
x. Beauty Bazar
xi. Pearl
xii. Timezone
xiii. RB
xiv. P&G
xv. Microsoft (Lumia)
xvi. LG
xvii. Offprice
xviii. Noir
xix. Walton
Daraz was the first online platform of Bangladesh who introduce proper packaging for e-
commerce consumer in Bangladesh. Each of their delivery bikes, bi-cycles and vans carry the
footprints in the market as their evidence in the market.

9.7 PROCESS
Daraz is a complete online marketplace with proper process. They maintain different software
for different purposes.

 Seller Center- It a module through which the merchant gets registered. Enlist
their product on website, change price, assort products and manage their
online store. On the other hand the vendor manager maintain the sales, update
the data, and analyze different types of function and situation.
 CRM- For maintaining good relationship with customer Daraz customer care
team use some modules like Zendesk, LMS, Zoho these types of software to
maintain a healthy relationship and push sell.
 WOMS- Warehouse and Order Management system mainly used by the
operations team and partially customer service team as well. It module help to
keep inventory, manage orders, manage warehouse (both single & Multiple),
return management, cross dock and drop ship.
 Delivery Module- This module helps the operation team to track vehicles,
orders and parcels, manage inbound and 3pl delivery partners. This module is
used by finance team as well to track down the daily delivery and collection
reports.

Apart from those Daraz use different IT system like google BI software, SEO tools and others
for marketing and data analysis.
10 FUNCTIONAL OVERVIEW

10.1 OVERALL OPERATION PROCESS OF DARAZ

Outbound Team Sort

Pack the product & the poduct according
Vendor Registrations
dispatch for delivery to their operation
coverage

Vendor's Products Operations team get Based on coverage

Enlistment , Upload notification , pick the they send the parcel
on platform and product and QC the through inhouse fleet
make it live for sell product or 3pl

After successful
Vendor Manager
View & order delivery the payment
ensure the aviability
placement by get collected &
of the product from
customer commission got
Vendor's end
deducted by Daraz

Order gets verified

Seller gets the
by customer service Sourcing Team
payment with in
and notify other Source the product
agreed time
concern team

Illustration 3: The Operational process of Daraz

11 DARAZ OPERATIONAL ORGANOGRAM

Daraz Bangladesh Limited started its journey in Bangladesh around September 2014 and
launched in November 2014. For emerging markets, Daraz has certainly become the leading
online marketplace. In a short span of time Daraz has grew exponentially. Daraz has a huge
number of sellers already on board and also thousands are on their way to become Daraz sellers.
Daraz operates as the one stop solution for customers to find their desired products online. Daraz
has different departments to run its operations in Bangladesh.
 CEO

Head of HR CFO Head of GM Head of Fashion Head of Operations Head of D-force

Sr. Manager
Customer Service

Operations Operations Manager

(Inbound) Agents
Manager(Outbound & 3PL)

Fleet 3PL Hub Warehouse Marketplace

Manager Manager Manager Manager Manager

Executives Executives Executives Executives

Fleet Illustration 4: The Organogram of Daraz

Supervisor Pickup
Personnel

Delivery
Man
12 SALES STRATEGY

Total Sellers for Acquisition Target: 650

Total assortment Growth Target: 40,000
Total Sales NMV (Net Merchandizing Value): 50,000 EURO
Out of Stock: Below 10%
Lead time for products going Live: 5 Days

13 JOB AS OPERATIONS MANAGER (OUTBOUND & 3PL)

13.1 DESCRIPTION OF THE JOB

Operation Manager of an E-commerce platform required work in a dispatch center with
warehouse and delivery system. As a founding member of Daraz I had to work in different
teams. But most interesting thing about my job was to set up a logistics team for Daraz. I had to
report to Finance Head as inventory and cash collection was under the supervision of Finance
team at the same time I had to parallel reporting supervisor Head of Operations. I started
working there from August 2014 up to May 2016. In this tenor I have learn so much things and
mostly in hand experiences.

13.2 KEY RESPONSIBILITIES OF OPERATIONS MANAGER

 Logistics fleet spread across Multiple locations in Dhaka, Comilla, Chittagong
 Warehouse operations - Inbound, Inventory , Outbound, Third Party
 Marketplace vertical
 Returns and Quarantine management
 Optimization in Pick up and cut off times for Third Party Logistics Vendors
 Analyzing and optimizing routing for destination locations with help of Third Party
 Logistics Vendors
 Load balancing through Capacity Analysis of Third Party Vendors
 Manage 16 members’ teams of Delivery Queue Executive and Logistic fleet of 35
Deliveryman.
 Improved in process of Delivery Queue and Service Request performance
 Involvement in Dive and save escalations and Root cause analysis

13.3 CHALLENGES AND EXPERIENCE FROM MY JOB

Setting up a logistics team is not a new thing but setting a team especially for e-commerce was
very much challenging. The whole concept was new in our country just because we were about
to introduce cross doc and drop ship model. These two model was totally unknown to the
vendors. At the same time I had to my third party logistics team ready and make the understand
the objective and business prospects. The whole eco system for e-commerce was not so ready to
support the expansion business. But the business somehow expanded for so much effort, right
team selection, make decision in the right time.

13.4 RECOMMENDATIONS THAT CAN DEVELOP DARAZ OPERATIONS

During my job in [Link] I have seen so many obstacle closely. I have been a part of the
process and I gave my best to develop so many things few of them are already implemented and
more need to be implemented. So these are my recommendation
 Daraz should invest on their 3PL partners so that they can carry out their business
smoothly.
 The training and personnel develop programs need to be more focused so that they key
people of the company can develop themselves.
 Global practice in the company is very good but all the rocket people should maintain
relation with other local companies as the whole sector is new so the mutual benefits is as
important as competitions.
  As a startup resource selection is very important most of the startup do their biggest
mistakes here. Daraz need not be more specific on their selection process.

14 PROJECT& EVENTS WITH DARAZ

14.1 SUMMARY
Being a part of this global economy Daraz Bangladesh has adopted the global e—commerce
culture with in a very short time Daraz established as remarkable online platform in Bangladesh.
Daraz has most dynamic sales team in Bangladesh who able to onboard almost every brands of
general merchandising products and 70% of fashion brands of the country. To become market
leader and expand the brand value Daraz has executed some big events-
 Mega Mobile Week -2015
 RobiFatafati Friday-2015
 Bangali New Year Campaign – 2016

These were the campaign I have done with Daraz during my working period. Those campaign
was new for the e-commerce sectors in Bangladesh and bring a new experience for the customer
in shopping online.

14.2 DESCRIPTION, SUCCESS & LIMITATIONS OF THE EVENTS

14.2.1 Mega Mobile Week -2015

This was Daraz Bangladesh first event in Bangladesh where 17 mobile brands had participated.
The duration of the event was one week and Daraz got orders more than Five thousand mobile
phones and accessories from around the country. Among those order 82% were verified and
confirmed and 62% were shipped and delivered. The return rate was 7% for different reasons.
The most soled mobile handset was Honorholi by Huwauei. Other remarkable brands and models
Samsung A-5, Nokia Lumia, Modes, 6 Degree.
 Illustration 5: Mobile week ofDaraz

[Link] Success of Mega Mobile Week –

Daraz Bangladesh made first footprint as a biggest online platform in the industries. The
Sales was as high that was equal to the revenue of previous quarter. More brand become
interested to work with Daraz Bangladesh. The Branded vendor acquisition was become
easier. The platform start getting big corporate deals and Daraz introduce a whole new
B2B sales team. The dependency on grey market reduces as some sole distributors of
mobile phone hand set FDL, Mobile XL, and Edison Group showed interest to work with
Daraz.

[Link] Limitations
As the event was big there were some limitations for that the events cannot reach the
expectations. First of all the vendor was not so much clear about the projected sales
volume and the operations model. As we introduce the drop ship model the vendor
manager was not clear about the functions. During the event when we go so many orders
most the orders was canceled because the enlisted vendors were out of stocked the
demand was not fulfilled timely. Which created customer dissatisfaction. Secondly from
the logistics side the whole team was not capable enough to pull the whole distribution
and fulfillment. Inside Dhaka we were quite successful but outside Dhaka the dependency
on 3PL was high and the 3PL failed to meet the demand. The product did not reached
 timely to the customer end, limitation of 3pl’s operation coverage was big issues of
limitations.

14.2.2 RobiFatafati Friday

RobiFatafati Friday was another event by Daraz Bangladesh and it was the biggest event of
Bangladesh E-commerce history. The event was hosted by Daraz and partnered by telecom
company Robi. The objective was to introduce Black Friday Culture in Bangladesh. This Black
Friday culture is mainly online and offline retail shops give super discount to their customer in
the last Friday of November of the year. This culture is very popular in USA, Canada and many
European countries. The features of this gala event-
 Over 2,000,000 SKU
 5000 products had more than 50% discount
 More than 70 million taka discounts
 72 established brand was onboard with discounts
 More than 20000 mobile phone were warehoused

Illustration 6: Fatafati Friday by Daraz

[Link] Success
The event was three days long in these three day Daraz got more than 50000 orders.
 Among those orders 30000 orders was confirmed. Around 24000 orders had been
delivered to the customers.

[Link] Limitations

It was the biggest event for Daraz but was not successful though the event achieves the
break-even. The main limitation was the proper projections where Daraz was expected
only 10000 order but got five time more and both the sourcing and infrastructure was
not ready for the sales boost. Selection of partner was not good enough e.g. the concept
of e-commerce business model not clear for the Robiteam. Consistency of rollout plan
was not strong enough to support the capacity. Lack of distribution channels and
regional office to operate this office properly.

14.2.3 Bangali New Year Campaign 2016-

Day by day traditional companies are breaking the belief of being in their own domain. They are
showing interest in new business and many of them are targeting online as a new channel like
modern trades. This year Unilever Bangladesh lunched another campaign called Bangali New
Year Campaign. Plan was to experience the sales volume of their products. The target was to
sales 2000 SKUs online.
 Illustration 7: Bangali New Year byDaraz
Success-
This one week long TR-02 campaign was achieved its target total generated order 6000
and confirmed order 4500 and 4200 were delivered.
Limitations –
After Fatafati Friday the team was quite prepared and everything was timly delivered.
But Unilever was not able to sell 2000 SKUs their total sales was 200 SKUs.

15 RECOMMENDATION
I have observe the business of Daraz Bangladesh and this I would like to give some
recommendation. Just like other Rocket Ventures most of the marketing and operational
strategies from Germany but culture and other socio-economic components varies country to
country. But they should start taking input local venture head and other mid-level managers.

As the business is expanding of Daraz they should have expand their operational offices in major
cities e.g. regional cities of Bangladesh.
As E-commerce sector is expanding day by day in Bangladesh. Currently we have a market of
400 cores annually. Here are some recommendations-
 To emphasize on more online Daraz Bangladesh should start online payment process.
 They should do some real market survey on e-commerce and customer demand.
 Daraz should invest more on logistics and infrastructure development.
 Daraz should be more interactive with other market stakeholders.
 They should make their B2B channel.
 Daraz invest so much investment on online platform but in Bangladesh as it’s a
developing country they should also in offline.
 Daraz should invest on their stakeholders development programs.
I hope if Daraz focus on those issues they can develop and gain much more market share

16 CONCLUSION
From my experience I can say Daraz Bangladesh is one of the most dynamic e-commerce
platform and they are growing very rapidly. There they share knowledge and train their
employees in a finest way. Working in their operations team I have gained so many things in a
short time. I have developed my planning and forecasting skills and leadership skills. I would
like to say like other company they are struggling a lot not because of their policies but also the
whole sector in this county is growing and in this growing every sector faces ups and downs. But
my best wishes will always for Daraz Bangladesh.
17 APPENDIX
 Order Fulfillment – Order fulfillment means the net verified order pick from the
inventory, quality check, pack, labeled and call the customer regarding delivery lead time
 GMV – Gross Merchandising Value mean the charge that online retail show multiplying
the number of merchandising with the amount paid by the customer.
 NMV – Net Merchandising Value means the value online retailers get after deducting all
the fees and expenses from GMV
 Gross Order & Net Order – The total number of orders placed by the customer before
verification known as Gross Order. After calling customer to verify his/her willingness to
buy the products and confirming the product availability of the product from merchant
end known as Net Order.
 Cross Dock – Picking the product from different merchants as per customer’s orders and
consolidate all the product in same package/bucket for delivery known as Cross Dock.
 Drop-ship – Means when vendor fulfill the orders of the customer by their self and send
it of delivery by own or third party logistics fleet.
18 REFERENCES
 [Link]
 [Link]
 [Link]
 [Link]
