Assignment and Presentation of MIS course on E-Commerce Prospect and Challenges in Bangladesh at East West University.

1. E-commerce Prospect and Challenges
in Bangladesh
Presented By:
Mahmudul Hasan Tushar
ID# 2019-1-91-018
Master Of Business Administration (Executive Program)

2. What is E-Commerce
 Electronic commerce means business based on
internet which is usually known as E-Commerce.
Figure: Generic E-Commerce model

3. Characteristics and benefits of E-Commerce
 It comprises the approaches of business like buying
and selling of products, services and information
fully based on internet.
 It provides a platform for sharing information
related to product and services among the buyers,
sellers, and related stakeholders using
communication and information technology (IT)

4. Characteristics and benefits of E-Commerce
 It connects different payment system through
mobile banking, debit and credit card of EFT
(Electronic fund transfer) payments, QR (quick
response) payment system like Bkash
 It provides various benefits to the customers by
making availability of goods at lower price, broader
choice and saving times.

5. E-Commerce Business Models
 Business-to-Business (B2B): bizbangladesh.com
 Business to-Consumer (B2C): www.Daraz.com
 Consumer-to-Consumer (C2C): www.bikroy.com
 Business-to-Government (B2G)

6. Prospect of E-Commerce in Bangladesh
 In Bangladesh ecommerce industry emerged in the 90s
but could not be evolved as expected
 Annual rate of growth in the ecommerce sector for the
past three years is trending above 200%
 B2C is the most popular form of e-commerce. Market
share for ecommerce for B2B and B2C are 10% and
90% respectively.

7. Prospect of E-Commerce in Bangladesh
 Average spending per online shopper is BDT 9000-
10000
 70.5% of e-commerce users spend less than BDT 5,000
a month
 About 29.3% buyers using a website directly as
compared to 43.5% using Facebook Page for
purchasing products online

8. Prospect of E-Commerce in Bangladesh
 Contribution of e-commerce as a percentage of GDP is
less than 1%
 At present per day, approximately 20 thousand & per
month 5-6 lakh parcel was delivered all over the
country
 More than 50000 people work directly in commerce
sector in Bangladesh

9. E-Commerce Demography
45%
55%
Gender
Male Female
44%
33%
23%
Profession
Young Professionals
Students
Others

10. E-Commerce Demography
45%
55%
Gender
Male Female
32%
14%
10% 11% 9%
24%
0%
5%
10%
15%
20%
25%
30%
35%
Common Interest

11. Most Purchased Items of E-Commerce
22%
18%
15%
10%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Fashion wear Accessories Electronics Footware and
food
Others
Items

12. Challenges and Risks of E-Commerce in
Bangladesh
 Poor Knowledge and Awareness: Majority of the population especially
from rural area people are not aware of ecommerce business
 Online Transaction: Internet banking, online transaction yet not popular
in Bangladesh and most of them unknown about the online transaction
operation

13. Challenges and Risks of E-Commerce in
Bangladesh
 Cash on Delivery: 30-50% consumers taking advantages of COD for their
online shopping as they can ensure the product quality after delivery
removing security issues. However COD brings sales loss for merchants,
some consumers denied to pay and unable to contact at the delivery
time of the goods
 Online Security: Many firms using pirated software and application
and not proper aware of online security issues which is prone to leak
out consumer’s personal information and banking information resulting
critical issues may happen.

14. Challenges and Risks of E-Commerce in
Bangladesh
 Logistics and Shipment Services: Bangladesh is still lagging behind this
improvement especially remote areas not covered for logistics and
shipment services.
 Goods Packaging: Packaging technology still not developed in
Bangladesh, and many of the goods hampered during shipping
without proper packaging bringing negative thought of online
shopping by the consumers.

15. Challenges and Risks of E-Commerce in
Bangladesh
 Fear and Fraud Factor: Majority of the consumer in Bangladesh not well
known about the online shopping process, payment dealings and its
security. Hence they fear to transact online, even they prefer pay on
delivery while shopping.
 Physical Touch of Goods: Consumer in Bangladesh used to buy
products after touching it physically and even they like to bargain the
price.

16. Challenges and Risks of E-Commerce in
Bangladesh
 Product Quality: Quality is a universal and common issues for online
shopping. Some quality issues like product description mismatching,
refurbished, fake products annoying the trustworthy of online shopping.
 Tax Structure: Unlike developed countries tax rate varies sector by sector
in Bangladesh hindering the development of online shopping

17. Challenges and Risks of E-Commerce in
Bangladesh
 Customer and Social Relationships: : Face to face trading can enhance
customer and social relationship whereas online shopping fail to develop
this relation.

18. Thank you
Have a nice weekend!s