Prospect and Challenges of E-Commerce in Bangladesh
INTRODUCTION TO E-COMMERCE
E-Commerce refers to the buying and selling
of products or services over electronic systems
through Internet and other computer network.
OBJECTIVE OF THE
The primary objective is:
To highlight the status, statutes, potential and
constraints of e-commerce development in Bangladesh.
The secondary objectives are:
Analyze how government can take initiatives to develop
ecommerce in Bangladesh.
Analyze how ecommerce can be use by every citizen of
HISTORY OF E-COMMERCE
1971 The seminal act of e-commerce
1979 Micheal Aldrin demonstrates the first online shopping system.
1981 Online shopping system was installed
1982 Started online ordering
1984 Online home shopping started & launches the electronic mall
Opened a commercial sales website (WWW.books.com) selling books
online with credit card launched a fully graphical, iconic, navigated
1994 Released the Navigator browser -MOZILLA
Launched Amazon.com first commercial free 24 hour internet only radio
station. Dell & Cisco used internet for commercial transaction.
HISTORY OF E-COMMERCE
1996 Established EC plaza B2B market place
1999 Established Alibaba group business.com sold for US $7.5 million to e-
2001 Decorative items was sold by ATG stores Alibaba.com achieved profit
2003 Amazo.com posts first yearly profit.
2004 DH gate.com China first online B2B transaction
2007 Bussiness.com acquired by R.H.Donnelley for $345 million
2010 Group on reportedly rejected a $6 billion offer from GOOGLE
2012 US e-commerce reached $226 billion
2014 India e-commerce industry estimated more than 30% from previous year.
THE ROLE OF E-COMMERCE
E-commerce made the whole
world into a big market place.
E-commerce through Internet, e-
mails, websites, and other
facilities, enables a
businessman to be linked with
every corner of the world.
DIMENSIONS OF E-COMMERCE
Consumer to consumer (C2C)
BUSINESS TO CONSUMER (B2C)
Where enterprises sell directly to the
customer, often cutting out wholesalers or
retail outlets. B2C is the most commonly
understood form of internet business
www.muktobazaar.com most successful
trading has been with standard products
such as CDs, Books, Software,
downloadable music etc.
BUSINESS TO BUSINESS (B2B)
It is larger, growing faster. This
includes procurements of raw
materials and supplies, liaison
with contractors, sales channels,
servicing customers, collaborating
with partners, integrated
management with data and
BUSINESS TO GOVERNMENT
Here business trade directly
with government offices and
agencies for public procurement
(e.g. supplies for hospitals,
school and other government
CONSUMER TO CONSUMER (C2C)
Online transaction between private
individuals. There are many sites offering
free classifieds, auctions, and forums where
individuals can buy and sell thanks to online
payment systems like PayPal where people
can send and receive money online with
ease. EBay’s auction service is a great
example of where person-to-person
transactions take place every day since 1995.
CURRENT STATE OF E-COMMERCE IN
Poor level of penetration
High cost to access and
A lengthy waiting period
OPERATING SECTORS OF E-COMMERCE IN
Airline ticket booking
Oil and Gas Sector
SCOPE OF E-COMMERCE
Freelancing IT Jobs
Search Engine Optimization
OPPORTUNITIES OF E-COMMERCE IN
FOR BUSINESS :
A global medium for marketing
Lower distribution costs
Lower marketing costs
Support a new form of commerce that
benefits all classes of society
Increase foreign export earning
Increase tax revenue.
FOR CONSUMERS :
Increased availability of information about products and services
Reduced costs from increased competition, which in turn results in improved
quality, quantity and variety of goods and services, through an expanded market.
SECTORS OF E-COMMERCE IN
Banking on the Web (Online Banking)
Online cards, gifts
IMPORTANCE OF E- COMMERCE IN
Barriers of time or distance
Lower direct cost of sale than
Ideal for niche products
Offers a lot of tangible
Strategic benefit of making a
business ‘ecommerce enabled’
PROBLEMS IN IMPLEMENTING
E-COMMERCE IN BANGLADESH
Bangladesh Computer Council, the govt. body on IT,
surveyed 4,500 IT organizations in 2012. This survey
studied 15,000 persons in the industry.
Bangladesh has an intractable problem of poor
FEW NUMBERS OF PEOPLE USE COMPUTER.
Internet connectivity with acceptable quality and
reliability is generally quite expensive in Bangladesh.
E-commerce also enables companies to manage their
One positive effect of the emergence of e-commerce is
that it may save energy.
The fixed and variable costs of having a physical store
or office in many locations are much higher than the
most expensive state-of-the-art ecommerce website.
E-commerce is its potential threat to the security of
consumers' personal information.
To make ecommerce successful in our country we need the help of all
aspect of people as well as govt. and business industry to cope up or
overcome the following limitations
Access to computer of household should be increased
The cost of using internet should be affordable to general people
User of software should be more simple for the easier use
Its use should be made as easy as TV and newspaper so that it require
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.