Globally e-commerce has proved to be a disruption and Bangladesh is not an exception. The current status of Digital Bangladesh shows promising growth, with e-commerce playing a significant role. It is strongly believed that e-commerce will spearhead Bangladesh’s trillion-dollar economy.
Out of the total population of 170 million, there are around 77.36 million (44.5 percent) internet users in Bangladesh while 63 per cent of population is amongst the age of 13 to 54 years. Analysis indicates that internet users in Bangladesh increased by 783 thousand (+1.0 per cent) between January 2023 and January 2024. This shows how
much scope the country has further in e-commerce.
The overall e-commerce market in the country was around US $ 6.9 billion in 2022 and it is expected to be US $ $9.2 billion by 2027, recording a CAGR of 7.37 per cent during 2023-27. Currently, more than 7,00,000 deliveries are being made every day in various sectors. The number of users in the e-commerce market in Bangladesh which was approximately 15.8 million in 2023, is expected to be more than double in next six years.
Like other growing online economies, we do have almost everything – growing start-ups, tech-based businesses across all categories and aspirational young consumers who are tech-savvy and prefer to buy online.
However to make the online economy grow faster, investments in digital infrastructure, logistics and regulatory frameworks are important.
The payment gateway system in Bangladesh is evolving, with credit card companies increasingly supporting e-commerce and m-commerce. However, further improvements in infrastructure, security and consumer trust are necessary to fully harness the potential of digital payments in
the country.
E-commerce companies are maturing in Bangladesh as they have enough experience and large data, significant funding etc. But there is also the growing need to focus on consumer behaviour, motivating them by offering low-cost mobile phones and cost-effective internet. At the same time, it is required to invest in infrastructure, especially in effective last-mile delivery.
As Bangladeshi youth are very much focused on Facebook, Instagram entrepreneurs also need to focus on Facebook Commerce (F-commerce). By ensuring cyber security, awareness initiatives at various levels, the confidence of common people is increasing in online transaction.
| E-commerce companies are maturing in Bangladesh as they have enough experience and large data, significant funding etc. But there is also the growing need to focus on consumer behaviour, motivating them by offering low cost mobile phones and cost-effective internet. At the same time, it is essential to invest in infrastructure, especially in effective last-mile delivery. |
Cost-effective internet has indeed revolutionised D2C brands globally and Bangladesh too can benefit from it, especially in the apparel and lifestyle sectors, by leveraging online platforms to reach wider audiences at lower costs. Broadband connectivity is a must to grow online businesses, especially remote area entrepreneurs need to get connected to run their businesses.
It is true that cross border e-commerce is becoming a good tool to enhance business but still Bangladesh’s apparel industry has not grown much in this aspect. Further efforts are needed to tap into this potential. Strengthening logistics, improving market access and enhancing product presentation can facilitate its growth.
As international apparel brands are focusing more on Bangladesh’s retail market, it will also help the market to become stronger and e-commerce friendly. Local apparel brands and retailers can’t afford to lack on this front and they should prioritise e-commerce to compete effectively and reach a broader customer base.
The E-commerce Association of Bangladesh (e-CAB) has played a vital role in shaping the country’s e-commerce landscape by advocating for policies, providing resources and fostering collaboration. Thrust on awareness campaigns, sharing best practices, creating investment readiness programs for scaling up, workshops and collaborating with law enforcement to combat e-commerce fraud are some of the main initiatives.
Since Covid, e-commerce has become a necessity and digital businesses have flourished. e-CAB is the connecting bridge for SMEs and local entrepreneurs to promote their businesses. Regular communication and dialogues with policymakers on behalf of digital business holders to smoothen the online platforms is one of the biggest strengths of the association. Our future plans likely involve continued advocacy, skill development, scaling up of entrepreneurs cross border connectivity and expanding membership benefits.
At the same time, the Government too is enacting laws and regulations, enhancing enforcement mechanisms and promoting consumer education to ensure transparency and honesty in e-commerce operations.
| Farha Mahmud Trina is associated with e-Commerce Association of Bangladesh (e-CAB) for more than four years. From last 10 years, e-CAB has been going around the country to build nationwide networking as well as encouraging the country’s e-commerce entrepreneurs and online consumers to transform their physical business to e-business. She also belongs to The United Nations Internet Governance Forum (IGF) Secretariat. The IGF is a global multi-stakeholder platform that facilitates the discussion of public policy issues pertaining to the internet. |
