Challenges in Bhutan’s Online Business & Solutions

The Digital Struggle of a Bhutanese Entrepreneur

Ap Penjor, a 45-year-old farmer from Punakha, never imagined he would one day be running an online business. Known for his homemade buckwheat noodles and traditional wooden bowls, he saw an opportunity to expand his market beyond the local Sunday bazaar. With encouragement from his son, he ventured into e-commerce, hoping to reach customers in Thimphu, Paro, and even internationally.

However, what seemed like an exciting journey into the digital marketplace quickly turned into a series of hurdles. Like many Bhutanese entrepreneurs, Ap Penjor faced challenges unique to Bhutan’s e-commerce ecosystem—from payment difficulties to logistics and consumer trust.

One of Ap Penjor’s biggest struggles was accepting online payments. Many potential customers hesitated to buy his products because there were no reliable online payment options. Bhutan lacks global payment services like PayPal or Stripe, and not all customers use mobile banking.

To overcome this, Ap Penjor registered for mBoB, MPay, and DrukPay, allowing him to receive payments directly via mobile apps. He also introduced a bank transfer system, making it easier for urban customers to pay. While not perfect, these solutions significantly increased his sales.

Living in Punakha, Ap Penjor often struggled with slow internet connections, making it difficult to update his online store and respond to customers promptly. Additionally, delivering goods to Thimphu and other dzongkhags was a challenge, with limited courier services and high delivery costs.

To resolve the logistics issue, Ap Penjor partnered with Bhutan Post and private delivery services like DrukRide and EB Market. He also used social media for customer communication instead of relying on slow-loading e-commerce websites.

Many Bhutanese buyers distrust online shopping, fearing they might receive poor-quality products or that vendors won’t deliver at all. Ap Penjor noticed that many potential customers would message him but hesitate to place orders.

To build trust, Ap Penjor introduced a Cash on Delivery (COD) option, allowing customers to pay only when they received their items. Additionally, he encouraged past buyers to leave reviews on Facebook and Instagram, showcasing positive feedback to attract new customers.

Ap Penjor realized that just listing products online wasn’t enough—he needed marketing skills to attract customers. However, as someone who never owned a computer before, understanding SEO, Facebook ads, and content creation was overwhelming.

Determined to succeed, Ap Penjor started watching YouTube tutorials on social media marketing. He also joined free online courses on platforms like Udemy, learning how to create engaging posts, run promotions, and interact with customers online. His sales doubled within months.

Despite the challenges, Ap Penjor’s story is one of resilience and adaptation. His journey reflects the struggles of many Bhutanese entrepreneurs trying to transition into online business.

As Bhutan’s e-commerce sector grows, solutions like better payment gateways, improved logistics, trust-building strategies, and digital education will be essential. With the right approach, entrepreneurs like Ap Penjor can turn challenges into opportunities, paving the way for a thriving online business landscape in Bhutan.

By Kinley Yonten

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