Class Work- 1

Submitted by: Ahsanul Karim

ID : 1731585030
Course : Mkt330
Section :3
Submitted to: Mohammad Abdul Mumin
Date of Submission: 20th June, 2021
Evolution of E-businesses in Bangladesh
The E-businesses sector has seen dramatic growth since the early 2000’s when Bangladesh
lacked widespread internet access or a reliable online transaction system. In 2009, the
Bangladesh Bank, the country’s central bank authority, began permitting online transactions.
In 2013, the Bangladesh Bank also permitted the purchase and sale of goods and services
online using international credit cards. According to the International Telecommunication
Union (ITU), the number of internet users has nearly tripled from 6.5 percent of the
population in 2013 to 18.2 percent in 2017 and continues to grow. While only 2 percent of the
population has a fixed-broad band connection, 30 percent of the population has a mobile-
broadband subscription. Nonetheless, Bangladesh still ranks 147 out of 176 on the ITU’s ICT
Development Index 2017, an annual report that captures the level of ICT development. The
extent of the E-commerce business market crossed the Tk 17.0 billion-stamp in 2017 from Tk
4.0 billion in 2016, as indicated by the information accessible with the e-Commerce
Association of Bangladesh (e-CAB). The market measure is relied upon to reach Tk 70 billion
(Tk 7,000 crore) by 2021.

How the E business in Bangladesh has evolved in Bangladesh?

With the inclusion of internet as the connectivity tool for e-business, Bangladesh has seen
rapid increase in online transaction and adaptability. Over the years, there are various E
business websites that supply people everything they need and want. Over the years young
entrepreneurs have increased throughout Bangladesh. There are E business that supports
every industry such as food, education and sports. Utilizing the internet we have formed
market places online. E businesses have led to a higher GDP, more jobs and market
expansion. There were 47.61 million internet users in Bangladesh in January 2021. The
number of internet users in Bangladesh increased by 7.7 million (+19%) between 2020 and
2021. Internet penetration in Bangladesh stood at 28.8% in January 2021.

Government initiatives in the growth of e commerce in Bangladesh

The government of Bangladesh supports this sector as part of Digital Bangladesh initiative.
The FBCCI is contemplating removing tax on ecommerce. With less government tax and
restrictions e commerce will be able to sustain in the long run and will help increase the
economy of the nation. E commerce help increase the GDP of Bangladesh, it really helps the
government reach its goals of sustainable development. Government’s constant support
helped ecommerce flourish in Bangladesh which in terms led to market expansion, increase
export, more jobs and better income. To support investors of our nation, the government came
up with policy and regulations such as National Digital Commerce Policy, which entails
outside foreign investors can’t hold a stake of above 49 percent in any E- commerce business
in Bangladesh.
The evolving sector of ecommerce is getting more competitive day by day and to further
encourage this sector government has also taken steps to aid the entrepreneurs.
1. IPO: Bangladesh joined with WTO towards making a free trade area.

2. The export policy act 1997-2002 to encourage exports in regional and international
markets.

3. Intellectual property rights (IPR) Act of Bangladesh gives protection on software

copyrights.

4. The foreign private investment (promotion and protection) Act to protect foreign investors,
thereby opening doors for global ecommerce platforms to invest in Bangladesh

Types of E-businesses in Bangladesh?

Currently, the following four types of ecommerce are popular in Bangladesh:

Business-to-Business (B2B);
Business-to-Consumer (B2C);
Consumer-to-Consumer (C2C); and
Business-to-Employees (B2E)

B2B websites were once the biggest constituents of the e-commerce sector in Bangladesh.
Several B2B websites in Bangladesh are engaged in providing manufacturing and supply-chain
solutions. For instance, BGMEA has actively deployed B2B e-commerce solutions for
international RMG orders and procurement, as do several RMG companies. There are also B2B
websites that feature business directories, trade deals and information about suppliers such as
BangladeshBusinessGuide, Addressbazaar and Bizbangladesh, which, at present, have limited
popularity.

B2C websites have also become very popular as evidenced by the growth and commercial
success of online-based home delivery of food, such as HungryNaki and FoodPanda. This has
come as a panacea to citizens given the high levels of traffic in areas such as Gulshan and
Dhanmondi in Dhaka at a time when people like to go out to dine. Other examples of B2C
initiatives include Facebook-based commerce platforms such as Shopr.bd and ShoptoBd which
allow Bangladeshi customers to purchase products from leading online shopping sites in the US,

UK, India and even China, e.g., Amazon.com, ebay.co.uk, Amazon.in, and Alibaba.

Meanwhile, C2C businesses, thus far, have been the life force of the e-commerce sector in
Bangladesh. The leading players in this category include Bikroy, Ekhanei, and ClickBd. There
has already been a reorganization of this sector with CellBazar being bought by Telenor,
followed by the acquisition of the foreign market playeOLX by Ekhanei.com. These businesses
consist of individual and auction-based online marketplace similar to eBay.

B2E businesses are particularly in the private sector Bangladesh, has more or less shift online,
thanks to companies such as bdjobs.com, prothom-alojobs.com, and jobsA1. Although internal
hiring and lobbying are widely prevalent, takes place through the largest and most accepted web

recruit portal Bdjobs, while many others like prothom- alojobs.com and jobsA1, etc enjoy
growing popularity.

Future of E business
In the distant future there will be a drastic increase in Ecommerce across Bangladesh, as there
are more entrepreneurs across the nation. There are lots of ambitions students with business
plans. In order to further extend their means of business will look towards E commerce. The
business engaging in ecommerce comes with certain benefits like geographic flexibility.
Products in the future will reach customers throughout Bangladesh in a convenient and timely
fashion. Bangladesh is considered to be a country with an emerging economy. The Ecommerce
technology in Bangladesh is drastically growing. A report from World Bank states that, there
has been an economic growth rate of 6.8 percent in Bangladesh in the year 2017, and a
significant portion of the contribution was from e commerce. According to the date, predictions
have been made that after the years following 2021, the percentage of economic growth due to e

commerce will increase as the same level as a developed first world nation.

Changes in promotion in Bangladesh due to the internet

In the near future from the year 2021 and onwards there will be 18.3 million internet subscribers

throughout Bangladesh (Khan.S,2020). Therefore the Internet is a powerful tool that can
effectively be used for overall economic growth . The citizens of the country will know that
there is technological advancements and that will improve the quality of life for the citizens of
Bangladesh. Due to the internet brands, businesses can deliver information faster. Promotional
offers of any businesses can be delivered; businesses will be able to retain customers. Customers

will receive important offer through mails. Businesses will be efficiently being able to do
business through the internet with consumers. This overtime can help Bangladesh’s economy
develop further.

Reference

1. https://thefinancialexpress.com.bd/views/views/e-commerce-in- bangladesh-where-are-we-
headed-1578666791

2. https://brainstation- 23.com/e-commerce-technology-scenario/
3. https://www.dhakatribune.com/uncategorized/2016/01/30/e-commerce-in-bangladesh