E-commerce in Bangladesh explained

E-commerce in Bangladesh refers to the electronic commerce sector of Bangladesh business.[1] [2]

History

In 2009 Bangladesh Bank approved online payment and in 2013 the bank approved the use of debit and credit card for online payment. The eCommerce Association of Bangladesh is the trade body for eCommerce in Bangladesh.[3] According to the association, there are 8,000 eCommerce pages in Facebook alone.[4] The growth of the industry has been inhibited by low usage of credit and debit cards, and the unavailability of PayPal.[5] In 2016 the government of Bangladesh opened eCommerce sites for every district in the country.[6] The same year, FBCCI recommended removal of tax on eCommerce.[7]

Volume

There are a number of free classified websites and online shopping marketplaces in Bangladesh.[8] According to Prothom Alo in 2014, about 1.5 to 2 million people shopped online every year, and the market was growing by 15% to 20%.[9] According to MetrixLab, in 2014, internet users in Bangladesh had 1 billion used goods in their stocks worth BDT 14,700 crore (US$1.9 billion as of 2014).[10] According to the Bangladesh Bank, around 1 million clients accessed mobile banking, and over 100 crore transactions were made through mobile banking accounts by 2014.[11] Transactions worth about BDT 1,000 crore (US$123 million as of 2017) have been made annually through e-commerce in 2017.[12] [13]

E-commerce in Bangladesh has grown rapidly due to increased internet penetration (over 131 million users), smartphone usage, and a rising middle class with higher disposable incomes.[14] The market, valued at USD 6.5 billion in 2022, is projected to grow at a 17% CAGR, with major players including Daraz, AjkerDeal, Chaldal, Evaly and Pickaboo.[15]

E-commerce by sector

Currently, the following four types of eCommerce are popular in Bangladesh:[16]

Business-to-business

There are number of company that offer office supplies, stationery, computers, cleaning, chemical for other companies.

Business to consumers

The Business-to-consumer segment grew through the growth of home-delivery of food.[17] There are other companies based on Facebook that allow people in Bangladesh to buy products from the United States, the United Kingdom and India.[18] The majority of the transactions are carried out through cash on delivery.[19] [20] A wide list of business like Daraz, already hitting the booming B2C e-commerce business model including social commerce where entrepreneurs uses Facebook or Instagram to sell to customers.[21]

Consumer to consumer

There are a number of companies that act as classifieds, including Bikroy.

Business to employee

There are a number of websites that host information about jobs in Bangladesh.

E-commerce list in Bangladesh

There are more than 35+ e-commerce websites in Bangladesh in 2022. Top popular e-commerce sites in Bangladesh include:

Digital marketing

Digital marketing is a recent sector that has experienced rapid growth.[24] [25] Since 2014 twenty companies have started as the nation's digital marketplace emerges. Unlike traditional marketing, digital marketing involves strategies designed to engage consumers and drive brand conversation on various digital platforms.[26]

The digital marketing industry in the nation has not matured, with consumers having a low online literacy rate.[27] The industry has doubled in size due to increase to mobile transactions, an estimated 70 billion taka are transferred through mobile phones every month.[28] Bangladesh has the tenth-largest mobile phone user base in the world and has sixty million internet connections.[29] Zunaid Ahmed Palak the state minister for ICT in the Best of Global Digital Marketing World Tour 2016 which was held in Dhaka, "I am happy to say that from today we will speak about digital marketing as being an essential part of Digital Bangladesh."[30] Bangladesh has sixty-five million internet users, about forty percent of the population.[31] A Digital Marketing Summit is organized annually since 2013 by the Bangladesh Brand Forum.[32] [33]

Notes and References

  1. News: Bangladesh to see 72pc growth in e-commerce sales. 2016-11-17. The Daily Star. en. 2017-02-04.
  2. News: Concerns for online purchases. 2017-01-31. The Daily Star. en. 2017-02-04.
  3. News: E-commerce to drive growth in electronic payments. 2016-11-06. The Daily Star. en. 2017-02-04.
  4. News: Tradeshi ties up with Alibaba for e-commerce. 2016-09-29. The Daily Star. en. 2017-02-04.
  5. News: E-commerce and its challenges in Bangladesh . The Financial Express . Dhaka . 2017-02-04.
  6. News: Government initiative to take e-commerce in rural Bangladesh. bdnews24.com. 2017-02-04.
  7. News: Withdraw all taxes on e-commerce: FBCCI. 2016-06-16. The Daily Star. en. 2017-02-04.
  8. Web site: e-Commerce Directory 2014 . dead . https://web.archive.org/web/20150421054856/http://e-commercefair.com/wp-content/uploads/2014/07/E-Commerce-Directory.pdf . 2015-04-21 . . 65–68.
  9. News: Jahangir Shah . 29 December 2014 . Online shopping increases . Prothom Alo . https://web.archive.org/web/20171219055043/http://en.prothom-alo.com/bangladesh/news/57411/Online-shopping-increases . 2017-12-19.
  10. News: 28 April 2014 . Internet users have Tk 14,700cr of used goods in stock . The Daily Star .
  11. News: 24 September 2014 . e-Commerce - the in thing . The Daily Star .
  12. News: Sharif Ahmed . 20 August 2017 . How online shopping is changing Bangladesh . The Independent . Dhaka . 2017-10-27.
  13. News: 2017-01-31 . Mobile money customers brace for hurdles . en . The Daily Star . 2017-02-04.
  14. Web site: 12 Feb 2024 . Internet users in Bangladesh reach 131m as of 2023 . Dhaka Tribune.
  15. Web site: Markets . Research and . Bangladesh B2C Ecommerce Market Report 2022: A $10.49 Billion Market by 2026 Featuring Daraz Bangladesh, Chaldal, Evaly, Pickaboo, & Ajkerdeal . 2024-07-28 . www.prnewswire.com . en.
  16. Web site: Export.
  17. News: Popularising Homemade Food. 2017-10-13. New Age. en. 2017-10-27. 2017-10-27. https://web.archive.org/web/20171027130225/http://xtra.newagebd.net/3619/popularising-homemade-food/. dead.
  18. News: E-commerce in Bangladesh. Dhaka Tribune. en. https://web.archive.org/web/20170204171407/http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-bangladesh. 2017-02-04. 2017-02-03.
  19. News: E-commerce is now a 300 crore industry and growing. 2016-01-08. The Daily Star. en. 2017-02-04.
  20. Web site: TWASP.
  21. Web site: Daraz BD Alternative Top 5 Online Fashion Site In Bangladesh. 26 May 2021.
  22. Web site: 2023-10-22 . Countdown begins for Daraz ‘11.11’ - the biggest sale of the year . 2024-06-15 . The Daily Star . en.
  23. Web site: 2022-02-22 . Star Tech: From a small store to a tech-retail giant . 2024-06-15 . The Business Standard . en.
  24. News: Sustainable digital marketing in Bangladesh . The Independent . Dhaka . 2017-05-01.
  25. News: Inbound.Digital: Knowledge-focused Social and Digital Marketing Conference on the cards. 2016-08-22. The Daily Star. 2017-05-01. en.
  26. News: Facebook has special plans for Bangladesh. 2016-10-12. The Daily Star. 2017-05-01. en.
  27. News: Digital marketing: The Bangladesh scenario . The Financial Express . Dhaka . 2017-04-30.
  28. News: Career Opportunities in Digital Marketing and Mobile Banking in Bangladesh. 2014-05-01. The Daily Star. 2017-05-01. en.
  29. News: Invest in digital marketing to spur growth: analysts. 2016-10-09. The Daily Star. 2017-05-01. en.
  30. News: Global event on digital marketing held in Dhaka. 2016-09-27. The Daily Star. 2017-05-01. en.
  31. News: Photoshop + Common Sense = Digital Marketing? . 2016-10-28. The Daily Star. 2017-05-01. en.
  32. News: Digital marketing summit in Dhaka Saturday. 2015-12-09. The Daily Star. 2017-05-01. en.
  33. News: 3rd Digital Marketing Summit on Oct 8. 2016-09-27. The Daily Star. 2017-05-01. en.

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