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Assignment
ON
E-commerce in Bangladesh: Where are we headed?

Submitted To: Submitted By:

Ms. Vikarun Ness Mirza Md Sufian Hridoy

Lecturer B ID: 2310360

Independent University, Bangladesh

Course Details:

Course Name: English Reading Skills

Course Code: ENG-102

Section: 18

Date of Submission: 1.3.2024

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E-commerce in Bangladesh: Where are we headed?

E-commerce, short for electronic commerce, is the practice of buying and selling goods and
services over the internet. It involves the digital exchange of money and data to execute these
transactions. As a modern retail framework, it allows consumers to shop from anywhere using a
computer or mobile device, encompassing a wide range of business activities and models, from
online retail stores to service providers and marketplaces (Sameh, 2021).

The growth of e-commerce during the pandemic in Bangladesh has acted as a significant catalyst
for us.The shift to online shopping has surged globally due to the COVID-19 pandemic, resulting
in a significant boom in the e-commerce sector. The frequency of online purchases and the
volume of transactions have seen a remarkable increase, with online sales witnessing a growth of
70 to 80 percent over typical periods. This expansion has led to the creation of millions of job
opportunities within the industry, contributing to its rapid growth.There has been a 50 percent
increase in online activity during the pandemic. The Bangladeshi government has announced that
it anticipates the e-commerce sector will generate employment for half a million people over the
next five years ( Hassan, 2020) .

A recent Asian Development Bank (ADB) study forecasts that by 2023, Bangladesh's
e-commerce sector is set to expand and reaching a value of approximately $3 billion.The study
identifies several drivers behind this growth, including enhanced internet connectivity, the
adoption of digital payment methods, changing consumer behaviors, and the significant push
towards online shopping prompted by the Covid-19 pandemic. Mobile financial services (MFS)
have played a crucial role in this expansion, making it easier for small and medium-sized
enterprises to participate in e-commerce. And that all because of these growths the e-commerce
industry in Bangladesh is fostering employment and providing opportunities for a new
generation of tech entrepreneurs.Currently, the country boasts around 2,500 e-commerce firms
and 50,000 commercial pages on Facebook, serving various market segments (Chokder,2023).
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The e-commerce industry in Bangladesh is growing fast and is expected to be worth $10.5 billion
by 2026. This growth is mainly because more people are using the internet and prefer to shop
online, especially after the Covid-19 pandemic. This situation forced many stores to start selling
online too. This change shows how promising e-commerce is in Bangladesh and highlights how
important it is to work with companies from other countries.Big international companies, like
Alibaba Group's Daraz, have helped a lot. They've made it easier for local businesses in
Bangladesh to sell their products all over the world, improve how they deliver products, and
make payments easier. These partnerships have really sped up the growth of e-commerce in
Bangladesh (Wahid,2024).

The e-commerce industry in Bangladesh has witnessed significant growth, especially accelerated
by the pandemic's impact on traditional markets. Several leading e-commerce founders in the
country anticipate continued momentum in this sector. They foresee a mature e-commerce
landscape within the next five years. One prominent player, Daraz, emphasizes its commitment
to customer satisfaction, considering it a crucial determinant of market leadership. Predictions
suggest the industry could generate over USD $5 billion in Gross Merchandise Volume (GMV)
and Daraz sees these projections as milestones in its journey towards greater success, aiming to
further enhance customer happiness (Hoq,2021).

The e-commerce sector in Bangladesh is on the rise, showing promising growth and increasing
competitiveness. Established local e-commerce businesses deserve protection due to their early
entry into the market. Despite facing challenges, the industry holds immense potential, with
projections suggesting a substantial contribution to the country's GDP in the coming years. It's
imperative for the government to provide greater support to this sector as a vital component of its
Digital Bangladesh initiative (Khan,2020).

(Total words: 599 without citation and with citation 606)

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References:

1. Sameh,S.(2021).The Emergence of E-commerce in Bangladesh And Its Growth.International Journal of

Science and Business (IJSB), 5(10), 30-40.
https://www.researchgate.net/publication/354997107_The_Emergence_of_E-commerce_in_Bangladesh_
And_Its_Growth

2. Hassan,Abir.(2020).The growth of e-commerce during the pandemic in Bangladesh.Youth

Advertisement.Newagebd.
https://www.newagebd.net/article/114200/the-growth-of-e-commerce-during-the-pandemic-in-bangladesh
#google_vignette

3. Chokder,R.(2023).How Bangladesh is Embracing E-Commerce: A Report by ADB Reveals the

Factors Behind the Country’s Rapid Online Market Expansion.
https://www.linkedin.com/pulse/how-bangladesh-embracing-e-commerce-report-adb-reveals-robiul-chok
der-dlsqc/

4. Wahid,S,S.(2024).Cybersecurity for e-commerce platforms: International collaboration in strategy. The

Financial Express.
https://thefinancialexpress.com.bd/views/cybersecurity-for-e-commerce-platforms-international-collabora
tion-in-strategy

5.Hoq,S,M.(2021).E-Commerce of Bangladesh in the next five years: What to expect? The Daily Star.
https://www.thedailystar.net/supplements/30th-anniversary-supplements/going-digital/news/e-commerce-
bangladesh-the-next-five-years-what-expect-2043981

6.Khan,S,S.(2020).E-commerce in Bangladesh: Where are we headed?The Financial Express.

https://thefinancialexpress.com.bd/views/views/e-commerce-in-bangladesh-where-are-we-headed-157866
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