E-commerce is a major contributor to the economy in Bangladesh. It is the fastest growing industry in the country and contributes about 2% of GDP. Online shopping has been on a rise throughout the country and has been embraced by both consumers and entrepreneurs alike. However, the current situation of e-commerce in Bangladesh is facing many challenges and obstacles due to government restriction, pandemics, fraudulent and many other events.
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The challenges of the current situation of e-commerce in Bangladesh
However, there are some primary challenges that have been taking place in e-commerce in Bangladesh for a while now. The first one is lack of access or uses to the internet which puts this opportunity out of reach for many people. Secondly, there is also a lack of trust among consumers when it comes to online shopping due to security and payment safety issues they face when making payments through their bank accounts or cards.
Lastly, most e-commerce in Bangladesh is still not registered properly or managed properly which means that they don’t have any accountability for their goods and services which is a big issue for the Bangladesh E-commerce industry. That’s why in 2021 there are many E-commerce businesses doing fraudulent activities. According to research 11.48% (men customers- 7.38%, Women customers- 4.1%) customer victims of online shopping scams in 2020 and previously it was 7.44% in 2019. According to research, Bangladesh now has 2,500 e-commerce websites and there are selling products worth USD 2.07 billion, and it is the 46th largest in the world in terms of e-commerce revenue. This is a huge amount for the Bangladeshi business industry.
As 2021 is a digital era, as a growing fast economy of Bangladesh is growing up day by day. In the covid-19 situation, the Bangladesh economy move different ways because it was a tough time that’s why it needs to move in a different way. For this reason, Online shopping growing up gradually where many businesses run well. Besides whole activities, there are some obstacles that arise in 2021. Those major problems of e-commerce in Bangladesh are:
- Lately Product delivery problem.
- Product quality problem.
- Feeling with Business money.
- Website Security problem.
In Bangladesh, nowadays people can’t trust e-commerce because recently some e-Commerce businesses stole customers’ money and go out from Bangladesh. This is one of the best reasons behind the current situation of e-commerce in Bangladesh. Some fraudulent company’s name is as follows as Evaly, Damaka online Shopping, Shirajgonj Shop, RST World.
They stole their customer’s money and the government and the e-Commerce Association of Bangladesh (e-Cab) can’t take proper steps to stop this fraudulent. If the government can not stop those fraudulent activities it will be increase day by day. So government and e-Cab take proper steps against them. And make proper customer security then eCommerce business can change revolutionary.
The current situation of e-commerce online payment in Bangladesh
The vast majority of people still prefer to conduct their financial transactions using cash. More than 90% of Bangladeshi eCommerce customers, according to e-study, Cab’s prefer to pay with cash on delivery. The majority of Bangladeshi e-commerce platforms have incorporated payment solutions to ease credit card transactions. However, most e-commerce companies also provide a variety of additional payment options, including cash-on-delivery, and still cater to the consumer’s preference. A very small percentage of eCommerce firms use the payment method of wire/bank transfer to only deliver the item after the customer has paid for it in full.
Even though Bangladesh’s internet and mobile phone usage have increased, in-person buying is being discouraged by congestion and rising per-capita incomes, therefore online payment is on the rise. A digital payment system was launched by the Bangladesh Bank in 2009 to facilitate cash transfers and utility bill payments by credit card. Bank transaction regulations (mobile payments, e-wallets, and swipe cards) and transaction infrastructure have advanced significantly since 2011. As a result, the unbanked population has been given new opportunities to use digital or mobile online payment services by financial institutions and businesses alike.
Electronic online payment services have already garnered investment from both domestic and international sources in this particular field. Financial apps, payment intermediary services, and solution creation and operations for non-bank entrepreneurs are some of the investment sectors that non-bank entrepreneurs focus on.
The current situation of mobile e-commerce in Bangladesh
88.1% of people in Bangladesh have a smartphone subscription, while 30% have a mobile internet subscription, according to the ITU’s most recent profile of the country. For phone and data connection in Bangladesh, e-2017 Cab’s assessment said that the country has 99 % coverage.
Since the introduction of utility payment processing and remittance transfer through mobile phone in Bangladesh in 2006 and 2010 respectively, these services have been very popular with the general public. There is a growing demand for Bangladesh Cricket Board-organized matches, and the Bangladesh Cricket Board has enabled mobile providers to sell tickets through mobile phones.
Twenty-eight institutions have already been given the go-ahead to provide mobile banking services, and more are expected. There are a variety of mobile banking options available in Bangladesh, including cash-in and cash-out, commercial payment, bill payment, salary disbursements and money transfers.
Marketing through the internet or other electronic means
More businesses in Bangladesh are turning to digital marketing due to the rapid rise in the popularity of smartphone internet customers and the expansion of digital infrastructure. Digital technology is more attractive to young generations than conventional media, which has a larger following among the elderly.
It’s very uncommon for organizations to allocate only 5 to 10 % of their budgets to digital marketing, but this is expected to radically alter as conversion rates rise. Small and medium-sized businesses (SMEs) are particularly benefiting from the power of digital media to boost their brand awareness. Digital marketing is rapidly being used by restaurants, fashion shops, electronics shops, and lifestyle websites.
The most common services offered by digital firms presently include content production and digital media marketing. As video platforms develop, so does online advertising. In Bangladesh, the analytics platform is still in its infancy and has yet to be broadly used by enterprises.
The Biggest Shopping Seasons
The three main Muslim festivals of Ramadan, Eid – ul – Fitr, and Eid-ul-Adha are particularly busy shopping times in the current situation of e-commerce in Bangladesh. Slightly more than a quarter of the population participates in religious celebrations such as the Buddhist New Year and the Durga Puja. Aside from these three important Bangladeshi celebrations: Bengali New Year (April 14), Freedom Holiday (26th March), and Victory Day (October 1). (December 26). A few of these celebrations are based on lunar sightings, while others are motivated by religious calendars.
The Internet of Things & Social Media
The current situation of e-commerce in Bangladesh has a strong social media presence. With even more than 29 million Bangladeshi users, Facebook is the most widely used social networking site. Facebook is a prominent e-commerce network that is utilized to engage customers. It’s not uncommon for small firms to promote and sell their items only on Facebook in Bangladesh, which has more than 8,100 e-commerce Facebook pages in the country. With improved streaming, quicker internet connections, and Google’s cache servers, YouTube is becoming more popular in Bangladesh as well.
Competition and Market Saturation
As in the initial periods of e-commerce, today’s competition is still mostly focused on small niches. Because of this problem, new eCommerce platforms will have difficulty establishing a successful business. eCommerce platforms like ChalDal, Daraz, ClickBD, and others already exist and may be used as an alternative choice. A new e-commerce platform will face a number of additional problems in addition to market saturation and competition.
A lack of faith exists among those who purchase goods online. A rise in consumer confidence in the products they buy online coincides with a rise in offline shopping activity. Customers have received defective or fraudulent goods in countless cases. Occasionally, the seller will only take money in advance and refuse to provide any goods or services at all. Consumer rights must be protected in order for e-commerce to engage with the traditional market.