Focus Writing on E-Commerce in Bangladesh | Impact of E-Commerce in Bangladesh Essay in English

Focus Writing on E-Commerce in Bangladesh | Impact of E-Commerce in Bangladesh Essay in English

• Prospect of E-Commerce In Bangladesh 
• impact of e-commerce in Bangladesh
• what is e-commerce in Bangladesh
• importance of e-commerce in Bangladesh
• e-commerce in Bangladesh
• challenges of e-commerce in Bangladesh
• e-commerce in Bangladesh during covid-19

Online transactions in Bangladesh have been increasing over the years. Improvements in the standard of living coupled with advancement in livelihood, shopping behavior has experienced a significant shift. In Bangladesh, the e-commerce industry set sail in the late 90s but was unable to expand immediately. 

Gradually, over the years, banking, logistics communications, and payment methods have improved creating opportunities for the business sector to develop. 

A number of sectors including the banking sector are now using the internet payment system. As consumers can avail of credit, debit card services, and digital wallets, the cash-on-delivery system is now more accessible.

＞The local e-commerce industry in Bangladesh began evolving as a proper ecosystem from the year 2012. This was facilitated by expanded internet connections along with the gradual legalization and approval of online payment by the Bangladesh Bank. Initially, several banks did not support the online payment gateway system. 

Prospect of E-Commerce In Bangladesh: 

Over the last few years, internet connections have improved and the number of people who have access to the web has increased thus making way for an e-commerce business to flourish.

• In 2016, $50 million was invested in the e-commerce sector in Bangladesh. Out of which $10 million was from Foreign Direct Investment. 
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• In 2017, the B2C e-commerce business market measure equaled USD 110-115 million (around BDT 9.0 billion) compared to BDT 1335.71 billion made by the retail market.
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• The outreach of the e-commerce business market exceeded Tk 17.0 billion in 2017 from Tk 4.0 billion in 2016, as revealed from the findings by the e-Commerce Association of Bangladesh (e-CAB). 
• The market measure for e-commerce is expected to equal Tk 70 billion by 2021.
• In Bangladesh, retail e-commerce is growing at 72 percent a month. 
• At present, more than 35,000 individuals and above 25,000 small and medium enterprises (SMEs) are part of this sector. 
• Till 2018, the number of e-commerce business sites and e-commerce pages equaled 2,500 and 150,000 respectively. 
• It was estimated that the number of deliveries per day added up to about 15.000 to 20,000 at the retail level. 
• According to Bangladesh telecommunication regulatory commission (BTRC) in 2016. the internet penetration rate was recorded at 13.2 percent, and the number of internet users was 66.6 million. In 2017, the number of internet users reached 80.6 million along with an increase in the penetration rate to 48.4 percent. 
• In 2018 the number of internet users further increased to 91.3 million and the penetration rate was 52.77 percent. Currently, the number of internet subscribers has reached 96.199 Million (June 2019). 
• According to market analysts, Bangladesh's e-commerce business market will reach USD 20 billion by 2020. 
• According to the June 2019 statistics of BRTC, 90.4 million users subscribe to the mobile internet, 0.06 million subscribe to WiMAX, and 5.73 million to ISP PSTN connections.

Bangladesh E-Commerce Marlet size: 

Year   Amount(In Millions) 

2017 1079 

2018 1313 

2019 1448 

2020 2077 

2021 2480 

2022 2850 

2023 3097

Source: Statista.com 

Obstacles of E-commerce/ key challenges: Although the e-commerce sector has grown over the years, there remain a number of obstacles. Some of the key challenges are ---- 

• Lack of net neutrality, high-speed net, parcel delivery logistics, and assurance of quality products.
• Foreign players also pose competition and risk to local start-ups. The sector suffers from a lack of logistics and sound transportation systems that restrict eCommerce trading to expand. The transportation system affects the delivery of products.
• Challenges also persist in the logistics sector. A large chunk of almost 65 percent of the operations of the e-commerce companies takes place in the capital and Chattogram. The e-commerce companies fail to reach all parts of the country, including of course the rural areas, due to poor infrastructure and inability to access remote areas for lack of adequate transport facilities. 
• In Bangladesh, in the majority of the cases payment is made upon delivery. 80 percent of the payments are done through the cash-on-delivery method, whereas only 1520 percent is done through mobile payment gateways. 
• Cash-on-delivery leads to the risk of tax evasion and also results in a lack of transparency in transactions. This is largely due to a lack of trust and the absence of a reliable and safe payment system. 
• In addition, the number of credit and debit card users in the country is low, as a result, many customers are unable to make online payments. 
• The e-wallet system is expected to overcome this problem to some extent. Bkash has partnered with the e-commerce ventures in the country and in addition, if banks also follow suit, it will be beneficial. 

Recommendation: 

The e-commerce industry in Bangladesh is an emerging industry. This sector is steadily growing and attaining competitiveness. To flourish this sector, the authority needs to follow some recommendations ----- 

• The local e-commerce companies which have been in the market since the inception of the e-commerce industry should be given protection. 
• Simultaneously, foreign investments are required in this sector. 
• The payment procedures offered by e-commerce sites need to be made more secure. 
• Low-cost, high-speed internet needs to be ensured in the rural areas. 
• The e-commerce industry needs to put more emphasis on delivery logistics and customer service. 
• Immediate action to ensure consumers' rights needs to be taken since a regulatory authority is not present to prevent consumers from being cheated and given low-quality or date-expired products. 

Despite the obstacles, the sector has a lot of potentials and in the next few years, the contribution of e-commerce to the country's GDP is likely to be significant. The government should be more forthcoming in supporting this sector as part of its Digital Bangladesh initiative.