Ecommerce In Bangladesh the Present Scenario _0117_V3

Presented By: Tanvir Kamal

In Bangladesh the Present Scenario

E Commerce

E commerce is business that takes place electronically, generally over the Internet.

It refers to the use of the Internet and the Web to transact business between and among organizations and individuals.

E- commer

ce

E means Internet and commerce means business. Electronic commerce is the process of doing business electronically or over the Internet.

Marketing, buying, selling and supporting goods and services by using Web based technologies, such as the Internet and other computer networks.E- commer

ce

3 MajorDimension

s 3

2

1 B2C (Business to Customer)

B2G (Business to Government)

Dimensions of E-Commerce

B2B (Business to Business)

Applications Related to E-Commerce

Email

Domestic and international

payment systems

Teleconferencing

Electronic tickets

Instant messaging

Newsgroups

Online shopping and order tracking

Online banking

Applications

History of E-commerce in Bangladesh

1971 1980 1990 2000 20100%

1%

2%

3%

4%

5%

6%

0.00% 0.05%

1.02%

2.11%

4.80%G

row

th r

ate(

App

roxi

mat

e)

UNCTAD and WTO have put much emphasis on the importance of E Commerce for developing countries

Buyers and importers gain a clear advantage when the Internet gives them access to the global market

Stand out in the competition against exporters in other countries

The potential for ecommerce exists in virtually every economy

Necessity of Ecommerce in Bangladesh

Advantages

•Provides consumers with more choices•Expands the Marketplace to national and international market•Decrease the cost of production and distribution•Allows consumers to interact and exchange ideas•Enables consumers to shop or other transaction 24 hours a day.

Advantages of E-commerce in Bangladesh

High price of computer and

hardware

Lack of technically

efficient personnel

Very minimum number of users

of web sites

Fulfillment and customer

relation problem

Telecommunication infrastructure

is poor

Small number of Credit

Card users

Barriers of E-commerce in Bangladesh

Comparison Between Bangladesh and Other Countries

1971 1980 1990 2000 20100%

5%

10%

15%

20%

25%

30%

35%

40%

Grow

th ra

te(A

ppro

xim

ate)

E-commerce market growth rate in 2011-2017

Comparison between India vs. Bangladesh vs. World

Source: World data: emarketer.com, Indian data: Wikipedia, Bangladeshi Data: unverified

Bangladesh India World

Market Size $ 1.2(Estimated)

$15 billion $1.5 trillion+

Growth 5% 30% 8-10%

E-Commerce in Different Sector (Bangladesh)

Online Banking

Pay Bill

Online Shopping

Ready made garments

Hotel booking

Education

Airline ticket booking

1990 1992 1994 1996 1998 2001 2003 2005 2007 20090

5

10

15

20

25

30

Prof

it ra

te in

mill

ion(

App

roxi

mat

e)

Comparison between Commerce &E-commerce of “X” company

S W

T

Strengths• Faster buying/selling

procedure• There is no theoretical

geographic limitations• No need of physical

company set-ups

Opportunities

• Quick and 24 hour business • Lower cost• .Higher profit

Threats• Lack of awareness at

government level• People’s mindset are services Internet is very

slow and expensive

O

Weaknesses• Lack of security and

privacy • Very minimum number

of users of web sites.• Small number of Credit

Card users

SWOT analysis

Ecommerce in Bangladesh


In world history, communication technologies have advanced the life of human race in many aspects, and its influences are continuing until today.


Unfortunately, Bangladesh had started lately in compared to rest of the world. The scenario of Internet usage and online shopping in Bangladesh was grim before a decade.However, recent moves of government and entrepreneurs have shaded rays of hopes in new generations for a bright future. Let’s take a review that what happened and what will be in next days.

The Past: Online Shopping In Bangladesh

*Literacy Rate as Per: http://greenwatchedbd.com/literacy-rate-now-53-7pc-bbs/

Origin of the Bangladesh and its political history has granted it poor and backward status in compared to its ultimate neighbors.Low literacy rate and adverse social profiles have hastened its march to bright future significantly.

Lack of essential infrastructure is apparent in Bangladesh since its inception. Information and communication technology sector is suffering heavily since the beginning.

However, in May 2006, a ray of hope emerged when Bangladesh was connected with submarine cable for Internet.


Despite such opportunity social and economical condition of Bangladesh was not in favor of advance Internet usage due to lack of network and related technologies like high quality modem and 3G networks for mobiles.


User profiles were restricted up to affluent class of people.People of higher qualifications and profiles were surfing net regularly so chances of proliferation of online shopping in Bangladesh were deemed until the 2010.


Present Scenario of Online Shopping in Bangladesh

The present scenario of e-commerce is favoring online shopping of essential commodities and fashion apparels greatly.

Therefore, online dress shopping, online T-shirt shopping, and buying shoes online are trendy activities of e-commerce shoppers.


Of course, trust and security level for online shoppers are a bit low so online shopping by home delivery and online shopping by cash on delivery are favorite mode of payments in Bangladesh.


Surely, credit/debit card payments and net banking options exist in e-commerce world of Bangladesh, but usage are limited.

The same scenario is blinking for t he online money transfer from the foreign countries and vice versa.

Online Payment in Bangladesh

Fortunately, some entrepreneurs from Bangladesh and its non-resident citizens have initiate some highly trustful and secure payment gateways and online money transfer portals that offer viable and feasible options for the online shopping and money transfer growth.



No doubt, past and present government agencies have supported such movements from entrepreneurs and encouraged them for secure online money exchange activates.

It is noteworthy that Bangladesh is not supporting crypto currency exchanges due to threats from extremists’ activities, but has trust on reliable 3rd party payment gateways provides because they can furnish critical data when demanded in extreme situations to the nodal government agencies, but protect data from the miscreants and hackers.

This article focuses on the situations of the online shopping in Bangladesh and have torched the scenario from past to present.

Such insights not only help people used to do online shopping or currency conversions, but also the e-commerce development community.

Resources

Resources

Resources

ekhanei.com

others

bikroy.com

priyoshop.com

daraz.com

rokomari.com

clickbd.com

kaymu.com

chaldal.com

bagdoom.com

21%

18%

17%

10%

10%

6%

6%

4%

4%

4%

Most Visited E-commerce Sites

2%Bank/wiretransfer

95%Cash on delivery

2%bKash/UCash

1%Credit Card

Spending Behavior-wallet Size and Product Basket

Exhibit: Avg. Wallet SizeSource: LightCastle Partners Survey on Digital Consumers, 2015

17%

26%

31%

20%

3%

3%

1%

Less than BDT 300BDT 300-500BDT 501-1,000BDT 1,001-3,000BDT 3,001-5,000BDT 5,001-10,000BDT 10,000+

Some Online e-commerce sites

ebay.com

olx.com


ekhanei.com

kaymu.com


priyoshop.com

pickaboo.com


zettabyte.com

bagdoom.com

The application and use of E-commerce is limited in Bangladesh. This sector is not so much develop in our country. The reason behind are many but the main reason is that our country is not so developed and most people of our country are poor and uneducated. So it is natural that there are few customers who are interested in E-commerce. But this situation can possibly be changed if we develop our telecommunication infrastructure, government awareness and people mindset.

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Ecommerce In Bangladesh the Present Scenario _0117_V3