COURSE- BANGLADESH STUDIES (G102)

DATE- 28 FEBRUARY 2022

E-Commerce in Bangladesh
Emergence, Potentials and Growth Hindrances

Mr. Sheikh Morshed Jahan

Professor
Institute of Business Administration
University of Dhaka
Team Members

GROUP 3 SECTION A
Sultana Mehzabeen Chaity, 21
Zarif Afridi, 23
Shamsul Arefin Priom, 25
Mashrur Ahmed, 27
Tasnia Azmayeen Deepi, 29
Contents

DISCUSSION TOPICS
Introduction
Sustainable Growth in Bangladesh Business
E-Commerce in Bangladesh
Growth of E-Commerce
Market Growth
Strategies and Implementation
Potentials of E-Commerce
Growth Hindrances of E-Commerce
Contribution to the economy
Building of a Developed nation
 INTRODUCTION

E-commerce or Electronic commerce has brought revolutionary changes in

the business sector. The inception of internet technology made it possible.
The whole world is experiencing a tremendous transition in business,
nowadays internet is used as a tool for business even for Bangladesh.

PERSPECTIVE OF BANGLADESH

The economic growth of Bangladesh is quite steady and showing an upward trend.

Bangladesh e-commerce sector has shown significant improvement, even during the
world financial recession the GDP growth was remarkable.
It is considered one of the fastest growing major economies in the world with a
significant GDP growth rate.
The E-commerce sector drew attention as well, and it quickly established itself as one of
the most important frontier markets for international investors.
Sustainable Growth in Bangladesh
INVESTMENT IN PEOPLE
Education must be linked to industry by improving skilled
human capital production. At least 4% of GDP should be
invested in education in order to construct a developed country.

EMPHASIS ON INCREASING PRODUCTIVITY

The most important tool for increasing our workforce's
productivity is skill development which must be emphasized on.

URBANISATION
Workers' housing, trash management, shelter, and
transportation are all in constant turmoil. If special industrial
zones and green divisional and district cities are established
quickly, our urbanization will be sustainable.
E-Commerce in Bangladesh
AN OVERVIEW
With advancements in the IT sector, Bangladesh is
gradually evolving towards a digital based future.
E-commerce online shopping has received huge
responses from Bangladeshi users over the years.
Today, there exists 50+ reputed and recognized E-
commerce websites competing over this digital market.
The most popular ones include Chaldal, Daraz,
Rokomari, Foodpanda, Pickaboo, Bikroy, Othoba,
Ajkerdeal, Bagdoom etc.
These websites have successfully entered the market
for online shopping, grocery shopping, online business
and many other sectors.


IN BANGLADESH, THERE ARE OVER

2,000 E-COMMERCE SITES AND
MORE THAN 50,000

E-COMMERCE
PAGES ON
FACEBOOK

Growth of E-Commerce

The e-commerce Online sales have Around five lakh By 2023, the
market in increased by 70 people will be market is
Bangladesh has to 80 percent employed in predicted to
exceeded 2 billion during the Covid- Bangladesh e- reach a size of $3
US dollars. 19 pandemic. commerce in the billion.
next five years.
E-COMMERCE 200

MARKET GROWTH IN
BANGLADESH 150

The market shares in the last few 100

years in E-Commerce sector has only

seen rise without fall. With a great
increase in the figures each year the 50

graph of the numbers looks

somewhat like this.
0
2016 2017 2018 2019 2020 2021

Figures in billion in taka

E-commerce Strategies and Implementations
in Bangladesh
The Government of Bangladesh withdrew the 49 percent maximum
allowable shareholding limit on foreign eCommerce companies in June
2020, allowing 100 percent foreign-owned companies to operate in
Bangladesh.
The e-commerce entities need to clearly state the details of the products
they sell online, which include the product's quality along with its return
policy.
E-traders will have to sign a deal with the products' suppliers, delivery
channels and payment gateways to ensure that customers' rights are
appropriately protected, reads the policy.
Product delivery has been included as an emergency service.
Potentials of E-Commerce in Bangladesh
E-commerce industry in Bangladesh seems to be very emerging in the next few days, with more
than 165 million inhabitants and 96 million internet subscribers.
In terms of e-commerce revenues, Bangladesh is ranked 46th in the global ranking.
BTRC announced that in 2017 there were 80.6 million internet users, and 91.3 million internet
users in 2018. There have been 96 million internet users according to the data of June 2019.
Roughly 45% people are potential users of e-commerce.
Online sales are known to have risen by 70 to 80% since 2020.
Currently there are 2000 website-based entrepreneurs in Bangladesh and it is estimated that
around 500,000 jobs will be created through digital platforms in the next one year.
Growth Hindrances of E-Commerce

Lack of Consumer Trust Lack of Well-structured

Online Transaction
System

Lack of Trained Personnel

Relatively Low Internet

Undersupply of Global
Penetration Rate
Product Sourcing
Contribution to the Economy
Bangladesh e-commerce industry stood at
$1,649 million in 2019, rising to $2,077
million this year and will touch to $3,077
million in 2023.
Bangladesh's online fashion market today
stands at $598 million and is likely to
cross up to $1.24 billion by 2023.

Currently, online sales of electronic

goods is 457 million US$ and furniture
and appliances of about 196 million US$.
Furniture and appliances sales would go
up to $352 million after four years.

In June 2020 the transaction amount
was 491.4 Core Tk which increased to
640.4 Core Tk in July 2020
In 2020, online payments reached TK
40 billion in online transaction
At present, this sector comprises over
40,000 individuals and more than
30,000 SMEs (small and medium
enterprises).
The economic variables and growth rates
are affected by e-commerce. E-commerce
transactions increase the growth of GDP
and, thus, help Bangladesh to achieve the
Sustainable Development Goals (SDGs).
It leads to higher incomes, higher living
standards for individuals, marketing
expansion, increased sales, and exports,
thus rising production and growth rates.
 Fast and improved business
communication, reduced production
E-COMMERCE cost, higher productivity, quality
goods and services, easier, faster
and cheaper transactions

1.5-2.9 times fewer greenhouse gas

emissions compared to in-person
shopping, lower carbon emission
and energy consumption related to
land usage and trasportation.

In few years 32% families of

Bangladesh will have at least one
internet connection. This impacts
online purchase, ecommerce and
IN BUIDLDING A DEVELOPED NATION
econmic growth in turn.
REFERNCES:

1. HTTPS://BRAINSTATION-23.COM/E-COMMERCE-TECHNOLOGY-
SCENARIO/#:~:TEXT=ACCORDING%20TO%20THE%20REPORT%20OF,MILLION%20INTERNET%20SUBSCRIBER
S%20IN%20BANGLADESH.
2. HTTPS://WWW.RESEARCHGATE.NET/PUBLICATION/309511870_E-
COMMERCE_ITS_STATUS_AND_IMPACT_ON_BUSINESS_IN_BANGLADESH#:~:TEXT=ALMOST%20ALL%20THE%
20IMPACTS%20OF,OF%20E%2DCOMMERCE%20IN%20BANGLADESH.
3. HTTPS://LINKMOBILITY.COM/E-COMMERCE-EFFECTS-ON-ENVIRONMENT-AND-
ECONOMY/#:~:TEXT=IN%20TERMS%20OF%20THE%20ENVIRONMENT,CAR%20TRAFFIC%20TO%20GO%20SH
OPPING.
4. HTTPS://SEOAUDIT.AGENCY/ECOMMERCE-SITE-BANGLADESH/
5. HTTPS://WWW.RESEARCHGATE.NET/PUBLICATION/328587999_E-
COMMERCE_DEVELOPMENT_IN_BANGLADESH
6. HTTPS://EN.WIKIPEDIA.ORG/WIKI/E-COMMERCE_IN_BANGLADESH
7. HTTPS://WWW.PRIVACYSHIELD.GOV/ARTICLE?ID=BANGLADESH-ECOMMERCE
8. HTTPS://UNB.COM.BD/CATEGORY/BUSINESS/KEY-CHALLENGES-TO-START-E-COMMERCE-BUSINESS-IN-
BANGLADESH/77289#:~:TEXT=THE%20DIRE%20SITUATION%20CAN%20BE,TO%20GENERATE%20AND%20C
ONVERT%20LEADS.
9. HTTPS://WWW.NEWAGEBD.NET/ARTICLE/114200/THE-GROWTH-OF-E-COMMERCE-DURING-THE-
PANDEMIC-IN-BANGLADESH)
10. HTTPS://THEFINANCIALEXPRESS.COM.BD/ECONOMY/BANGLADESH/COVID-CRANKS-UP-BANGLADESH-
E-COMMERCE-1602474106?AMP=TRUE
 THANK YOU

WE APPRECIATE YOUR TIME AND ATTENTION