Assignment Topic: Briefly explain the growth of E-commerce in Bangladesh in last two years

Submitted By

Name: Nayan das

Matric Id: MBA 02407100

Batch: 24(B)

Course Code: MBA-604

Course Name Marketing Management

Date:07/02/2020

Submitted To:

Ms: Kaniz Morshed

Lecturer

Department of Business Administration

Port City International University

Introduction of E-Commerce: The term e-commerce was coined back in the 1960s, with the
rise of electronic commerce – the buying and selling of goods through the transmission of
data – which was made possible by the introduction of the electronic data interchange. ‘E-
commerce’ and ‘online shopping’ are often used interchangeably but at its core e-commerce
is much broader than this – it embodies a concept for doing business online, incorporating a
multitude of different services e.g. making online payments, booking flights etc.

E-commerce has experienced rapid growth since its humble beginnings with e-commerce

sales projected to grow to 599.2 billion USD by 2024. The COVID-19 outbreak saw e-
commerce sales spike 25% in March 2020 alone.

Development of E-commerce in BD: The local e-commerce industry in Bangladesh began

evolving as a proper ecosystem from the year 2012. This was facilitated by expanded
internet connections along with the gradual legalisation and approval of online payment by
the Bangladesh Bank.

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.

However, compared to developed countries, Bangladesh's e-commerce is still in its infancy.

Although orders can be placed through online, there are still more transactions in cash. This
is called cash on delivery. Even if the order is placed online, it is confirmed again by calling
from the call centre. The e-commerce company delivers the product to the customer and
brings it in cash. Therefore, completely e-commerce has not yet been introduced 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.

Analysis of the survey of the growth of E-Commerce in Bangladesh:

The Diagram of the growth of E-Commerce sales in last two years:

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

70 Currency earning in BD through E

60 commerce Site:

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)

1. In this pandemic situation are you satisfy with online purchasing?

 Yes
 No
2. Do you prefer for online transaction in this situation?
 Yes
 Maybe
 No
3. What kind of online payment do you prefer?
 COD (Cash on Delivery)
 Online Payment by using Mobile Wallet
 Online Payment by using Debit & Credit Card
 Internet Banking
4. Do u think that because of E commerce anyone can breach anyone personal
Information?
 Yes
 No
5. What kind of Shopping platform do you used in E-commerce?
 Evaly
 Daraz
 Bikroy.com
 Others
6. In which category do you think E-commerce are growing rapidly in BD?
 Garments
 Medicine
 Educational
  Groceries
 Food Delivery
7. Because of Covid 19 situation Do you think that E-commerce sectors are highly
changed and upgraded to the next level in prospective of BD?
 Yes
 No
 Maybe
8. Why do you prefer online shopping during this pandemic? Because.
 It provides safety and security
 Because of convenient
 Wide range of product available
 It provide more facilities then offline
 Other (please specify)
9. Do you think that because of E-commerce the public & private sector are more
easier to provide service to the people of BD?
 Yes
 No
10. How was the price of E-commerce products after pandemic situation?
 Well
 Good
 Not so good