This document discusses the prospects and challenges of next generation e-commerce in Bangladesh. It begins with background on e-commerce classifications like B2C, C2C, and market trends. The prospects section outlines growing internet and mobile penetration rates and payment options. However, key parts of the e-commerce value chain are missing in Bangladesh like integrated payment gateways, warehouses, delivery tracking, and inventory management systems. Additionally, fears include competition from foreign players and high marketing costs. The document concludes with tips for e-commerce businesses to focus on lower prices, better delivery, gaining market power through supplier discounts, and emphasizing customer retention and satisfaction.

1. Next Generation Ecommerce:
Prospect and Challenges
Shaer Hassan
CEO, Nascenia

2. Content
• Background
• Prospect
• Missing parts to be filled
• Fear
• Practical tips for e-commerce business

3. Definition and Background

4. E-commerce
is trading products or services using computer
networks, such as the Internet. Electronic
commerce draws on technologies such as
– electronic fund transfer
– supply chain management
– Internet marketing
– online transaction processing,

5. Classification
Superstor
e
Amazon Biponee, Akhoni, iFerri
Niche Diapers.com Goponjinish, Carmudi, Lamudi
Service AirBnb, Shopify Bdjobs, Bdipo, dugdugi
B2B Alibaba, Amazon
Supply
etunes
B2C Barnes & Noble Branoo, Rokomari, hungynaki
C2C ebay, Clickbd, Cellbazar, iOffer

6. Yet to Come
• Shareconomy: Uber, Airbnb
• Booking: Agoda.com, expedia.com (Shohoz)
• Streaming: Netflix, Spotify (Bongo)

7. Prospect

8. Promising numbers
• Internet penetration
– 11 to 40.8 million internet users
– Introduction to 3G
• Mobile penetration
– 75% of mobile phone penetration (11.43 million
users)
• Payment through credit cards and mobile
(bKash)

9. Growth is Exponential
Source: Technopak

10. India vs. Bangladesh vs. World
Bangladesh India World
Market Size
$1.2
(estimated)
$15 billion $1.5 trillion+
Growth 5% 30% 8-10%
Source: World data: emarketer.com, Indian data: Wikipedia, Bangladeshi Data: unverified

11. Growth
Source: Slideshare (original source not mentioned)

12. Missing Parts

13. Core E-commerce Value Chain
Access to e-
commerce
site
Customization
and
recommendation
Pay and
Purchase
Sourcing &
managing
inventory
Shipping,
tracking &
delivery
Customer
service

14. Missing Parts
• Courier system
– No tracking system
– Long delivery time
– Inconsistent
– Poor cash handling: is it scalable?
• Tax break

15. Missing Parts
• Payment gateway integrator (not bank)
– Recurring payement
– Option of charge-back to the client
– Payment on hold so that
– Payment split - (so that, in a C2C platform
payment can go to user + business owner)
• Other services: SEO, software service, call
centers
• Human resource

16. • Large warehouse and inventory management
system
• Investment
• Media support for PR
Missing Parts (to scale up)

17. Fear Factors

18. Facts
• Nobody is making profit
• Some don’t even introduced a revenue model
• Everyone is dissatisfied with delivery
– Some are taking up own delivery system e.g.
hungrynaki, rokomari, iferi, chaldal etc.
• COD putting risk on business, courier service
handling cash
– Not scalable

19. Fcommerce: 60% products are imported
Source: f-Commerce and e-Commerce (Current Scenario in Bangladesh) by
Mahabubur Rahaman Arman, www.tzonebd.com

20. Fear Factors
• Foreign players
• Need a lot of investment
• Winner takes all
• Increasing cost of Marketing
• Disadvantage for a local player to advertise on
global media e.g Google, FB
– Local media is even more expensive and fuzzy

21. Tips

22. Recipe by Amazon
• Lower price
• More options
• Better Delivery
Source: Delivering Happiness: A Path to Profit, Passion and Purpose

23. Recipe by Amazon
Gain market
power
Retailer
negotiates
with supplier
for discount
Discount is
passed to
the
customers
Source: The Everything Store: Jeff Bezos and the Age of Amazon by Brad Stone

24. Ways to win customers
• Surprise Customers in a good way (freebies,
quicker delivery - Zappos!)
• Under promise, over deliver
• Be clear and concise
• Anticipate customer needs
• Empathize and be sincere
• Shorten response time

25. Survival Tips
• Focus on retention
• Focus on a niche
• Spend on marketing now is cheaper than later
• Look for investors – big ones
• Look for sustainability
– surviving only on tax break, foreign products,
continuous ad on international media is not
sustainable

26. Recommended Reading

27. Thank you
shaer@nascenia.com
linkedin.com/in/shaerhassan
www.nascenia.com