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Assignment Topic: Briefly Explain The Growth of E-Commerce in Bangladesh in Last Two Years
Assignment Topic: Briefly Explain The Growth of E-Commerce in Bangladesh in Last Two Years
Submitted By
Batch: 24(B)
Date:07/02/2020
Submitted To:
Lecturer
The growth of e-commerce during the pandemic in Bangladesh: The ongoing pandemic has
locked the entire world inside homes but that does not mean the demands have gone from
the market. Merely the shoppers have adopted the situation and shop online and for that
the e-commerce sector is booming around the world. The sector is also thriving in
Bangladesh and expected to hit USD 3 billion mark by 2023. LOCAL shoppers in the COVID-
19 are now online. As a result, e-commerce is booming around the globe. Shopping online is
on the rise. Transactions are also increasing manifold. It is known that online sales have
increased by 70 to 80 percent compared to the regular time. Millions of people have been
employed in this sector. Business is expanding rapidly. As a result, the e-commerce market
in Bangladesh has exceeded one and a half billion US dollars, according to the German-
based research institute Statista, expected to reach at two billion dollars this year and three
billion dollars by 2023. Mohammad Abdul Wahed Tamal, general secretary of the E-
Commerce Association of Bangladesh (e-Cab), told that business is doing very well now. In a
word, e-commerce has revolutionised during the COVID-19 Pandemic. The growth of online
sales has increased by 70 to 80 percent compared to the previous time. However, buyers
are not buying all kinds of products yet. They are buying more essential products. He also
said that the e-commerce or online shopping market across the country has crossed TK
6,000 crore. Merchants are happy to cater to the increased demands. Merchants are
constantly giving new discounts to expand the scope of business and retail buyers.
Everything from online clothing, jewellery, food, electronics, cosmetics and vegetables.
According to the e-Cab, shoppers are mainly city-centric. 80 percent of e-commerce buyers
are from Dhaka, Gazipur and Chattogram. Of these, 35 percent are from Dhaka, 39 percent
from Chittagong and 15 percent from Gazipur. The other two cities are Narayanganj and
Sylhet. Eighty-five percent of e-commerce users are between the ages of 18-34. Challenges
for the development of e-commerce sector in the country include the lack of appropriate
national policies to support the system, specific roadmaps for e-commerce development,
financial transaction security, slow and expensive internet, delivery channels, inter-operable
infrastructure and lack of human resources. In this context, the Statista has said that
Bangladesh is in the 47th position in the world of e-commerce. However, the challenge is
the delivery of goods to outside the cities. In this sector, 90 percent of the products are cash
on delivery. However, there is some fraud in the name of pre-order in bringing foreign
products. In this case, buyers need to be cautious.
According to the latest data from Statista, the e-commerce market in Bangladesh in 2019
stood at 1,648 million US dollars which will increase to 2 thousand 77 million this year and in
2023, the market size will be 3 thousand 77 million dollars.
According to e-Cab sources, the growth of this sector in Bangladesh over the last three years
is about one hundred percent. In other words, this sector is almost doubling every year. The
number one position of e-commerce in Bangladesh is already occupied by Alibaba of China.
Amazon, the world's largest e-commerce company, is also showing interest in Bangladesh.
Big foreign companies have suddenly become interested in Bangladesh.
Because about TK 700 crore are being transacted every month in this sector now. In other
words, the annual transaction is now more than 8000 crore TK. It is known that about 1,200
organisations are associated with e-commerce in Bangladesh at the moment. Alibaba has
already entered the e-commerce of Bangladesh by buying Daraz. All types of products are
now bought and sold online in Bangladesh.
It is learned that Daraz is the largest e-commerce company in Bangladesh at the moment
which is an organisation formed with 100 per cent foreign investment. After them, other
Bangladeshi companies like Evaly, Ajkerdeal, Bagdoom, Priyoshop, Rokmari, Pikaboo and
Othoba are doing well. Amazon is working very actively to come to Bangladesh. But it may
not be entering the market of Bangladesh directly now.
In the final analysis some companies are taking advantage of this opportunity with the
passage of time to increase the online promotion and dissemination by opening fake online
pages and cheating the customers. They must be brought under law enforcement agency to
cement consumer's trust on online shopping.
2019
online sales offline sales
35%
65%
2020
online sales offline sales
20%
80%
District ratio of applying E commerce in Bangladesh in last years:
2019
35
30
25
20
15
10
5
0
Dhaka Chattogram Gazipur
2020
40
35
30
25
20
15
10
5
0
Dhaka Chattogram Gazipur
50
40
Freelancing
65
30 Online shopping
55
45
20
35
10
0
2019 2020
Daraz Evaly Bikroy.com E-commerce companies that are rapidly
growing in BD Sector:
65
60
30 30
10
5
2019 2020
My questionnaire about E commerce growth in BD: (Place a Tick mark to the right answer)