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Thursday, October 30, 2014

Exploring E-COMMERCE in Bangladesh



                            Author : Rumana Reza           


Still the common portray of Bangladesh to the world is as like as a country that struggling against hunger.  But the reality is quite different. Peoples are becoming more fashion conscious there and trying to follow luxurious lifestyle. That makes them more aware on current world trends. Therefore, they are looking for international brand products more. Youths are so enthusiastic on e-commerce. They are addicted to technologies. They want to contribute and are ready to absorb new ideas also. In addition to the country has huge population of 154.7 million (2012) where internet users reached to 33.43 million at the end of April, 2013. The Global Information Technology Report: Living in a Hyper connected World, prepared by the World Economic Forum (WEF) mentioned that Bangladesh was ranked as 113th in the “network readiness index” among 142 countries in 2013.[http://archive.thedailystar.net/newDesign/cache/cached-news-details-245821.html ] According to Bangladesh Association for software and Information Services (BASIS), its outsourcing IT jobs has increased by 56% in 2013. [http://www.digitalworld.org.bd/key-ict-progresses]    As one of the lowest mobile tariff in the world, the country stands second followed by Hong Kong.  That’s why Bangladesh could become as one of the lucrative markets for e-commerce.

Here, I have tried to focus on some external and internal factors that are barriers for Bangladesh to contribute more in e-commerce sector.

In Bangladesh, most of the application of e-commerce is export business. It’s hard to import products from outside of the country. The whole process is too lengthy and expensive also. Some sites like amazon.com labeled Bangladesh on the country bar, but the true picture is not that easy. Buyers from Bangladesh can’t order for products directly. They need via to collect it. International Credit Card Exchange like Pay Pal still not valid in the country. Therefore, clients have to pay through the local bank accounts. Companies like FedEx charges so high to ship any product to Bangladesh. For this reason, importers are being deprived to get their desired world class products. On the other hand, exporters are losing a big bazaar.

E-commerce of Bangladesh is not developed much yet due to its infrastructure also. Road communications, management system of courier services are not well enough. Therefore, clients can’t get their products in time. Moreover, instead of home delivery, often they ask for self service to its recipients. So, consumers can’t enjoy the true benefit of e-commerce.

Another obstacle for e-commerce in Bangladesh is denying code of ethics. It makes consumers more suspicious on this sector. In real life, people often don’t get pure, fresh foods at super shops. Moreover, chemicals are applied on for long time. If the real scenario is like that then it’s hard to keep faith on virtual world. In addition to on e-shopping sites, colors of the products are not as same as the real one mostly. Exchanges of second hand electronic products through some local online shopping sites like olx.com.bd, bikroy.com etc is making some clients losers. All these sites have no accountability to assure the product’s quality.  People are now more concern on product quality. According to ‘Pricing-to-Market: Price Discrimination or Product Differentiation? ‘, prepared by Nathalie Lavoie and Qihong Liu, consumers know also that it was “examined the bias in PTM results when unit values aggregate vertically differentiated products.”


[[http://www.aae.wisc.edu/fsrg/web/FSRG%20papers/20%20Lavoie%20Liu.pdf ]  , page-14] And that’s make them more suspicious on imported products. Therefore, people losing their interests on e-commerce.

Problem of developing web sites is one of the barriers to grow e-commerce up in Bangladesh. Cyber crime like hacking is a big threat now.  Some online store developers offer 10 to 20 thousands taka only to develop a site. It costs less because those developers doing piracy through using others template without permission. These templates are full of BUGs that couldn’t be identified. It makes the victim site down and could be hacked easily. Entrepreneurs have to face difficulties to maintain their domain and hosting also. In Bangladesh, there are some IT companies, freelancers arisen now who purchase domain and hosting using their own accounts. Then they keep it locked. They don’t want to give the control panel to their clients.  They do so because of forcing the clients to renew their domain and hosting next year.

To expand e-commerce in Bangladesh, proper mentors are needed to guide online entrepreneurs. Though there are some communities for entrepreneurs, they can’t play important role on customer services, user interfaces, public relations, user experience, and customer awareness yet. Whatever, nothing is easy. If consumers get assurance that they could receive pure products at the right time with right price, they might not count all the difficulties. This may help Bangladesh to emerge as an important factor in e-commerce sector and the country may contribute on global economy more.

Copyright © 2014 by Rumana Reza (Aurny)