A brief overview on E-commerce in Bangladesh.

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