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1.

Introduction
The Internet has opened up a new horizon for commerce, namely electronic commerce
(ecommerce). The Internet, through advanced mechanisms of data transfer networks, establishes
global linkages between customers and suppliers regardless of geographic location. E-commerce
entails the use of the Internet in the marketing, identification, payment and delivery of goods and
services. It involves order processing at company Websites and securing Electronic Fund Transfer
(EFT) payment systems.

Electronic commerce or e-commerce is a term for any type of business, or commercial transaction
that involves the transfer of information across the internet. It is currently one of the most important
aspects of the internet to emerge. E-commerce has grown rapidly Worldwide and also in
Bangladesh. At present internet services are available in Bangladesh. Its usage for e-commerce by
Bangladeshi producers to expert as well as to access inputs will be dependent on their willingness
and ability to use this medium as well as that of the buyers of final products and the sellers of
intermediate goods and services. In Bangladesh, among the dimensions of ecommerce, there is a
limited application and use of B2C e-commerce. But a significant portion of total ecommerce
websites are engaged in C2C e-commerce which is auction based commerce between consumers
to consumer. Other fields are not yet much developed in Bangladesh. There are many reasons
behind this one simple reason this country is not so developed and most of its citizens are poor and
uneducated. It is quite natural that there are few customers who is willing and can shop in internet.
It might take years to be developed in this sector in Bangladesh, but there are evidence found that
it is also growing rapidly and soon will reach at a prosperous stage. This study highlights the
present situation of e-commerce and constraints to e-commerce development in Bangladesh. Here
the challenges in implementing e-commerce in Bangladesh are discussed.

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1.1 Objectives of The Study
E-commerce has grown tremendously worldwide and also grown in Bangladesh. The impact of
this growth is also influencing societies and businesses. So, this study is prepared with some
objectives:
 To know the present status, constraints and potentials of e-commerce in Bangladesh.
 To find out the origins and growth of e-commerce.
 To know the major types of e-commerce websites.
 To analyze the different e-commerce websites in Bangladesh.

1.2 Methodology
This study is mainly based on secondary data related to E-commerce. Secondary data and
information have gathered from Internet browsing, Books, Journals, Research paper etc. Primary
data and information also have collected through using observation and taking other respected
person opinion.

1.3 Limitation
The major limitation factor for this report is that information from different sources were quite
inconsistent which created some problems in making the assignment & compelled us to verify the
information diligently. The limit was also a fact because at the same time we are doing our classes,
other assignments. So, it was quite hard to keep everything at a run.

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2. E-Commerce And Its Brief History
2.1 Meaning of E-Commerce
E-commerce refers to the buying and selling of products or services over electronic systems
through Internet and other computer networks. In other words, e-commerce involves digitally
enabled commercial transactions between and among organizations and individuals. Digitally
enabled transactions include all transactions mediated by digital technology. Commercial
transactions involve the exchange of value across organizational or individual boundaries in return
for products or services. The most popular medium in which e-Commerce is conducted is the
internet. It combines a range of process such as:
• Electronic Data Interchange (EDI)
• Electronic mail (E-mail)
• World Wide Web (WWW)
• Internet Applications
• Network Applications

Some common applications related to electronic commerce are the following:


• Email
• Enterprise content management
• Instant messaging
• Newsgroups
• Online shopping and order tracking
• Online banking
• Online office suites
• Domestic and international payment systems
• Shopping cart software
• Teleconferencing
• Electronic tickets

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2.2 Objectives of E-Commerce
Objectives give the business a clearly defined target. Plans can then be made to achieve these
targets. This can motivate the employees. It also enables the business to measure the progress
towards to its stated aims. E-commerce facilitates the very process of international transaction;
this involves securing and finalizing a contract, delivery of the product, and finally payment for
performance of the contract. The movement of goods and services, as well as the payment
mechanisms within a country and more so outside a country, are governed by regulatory and legal
issues. Hence, the regulatory environment is at the core of e-commerce development.

2.3 Types of E-Commerce:


Business to Business(B2B),Business to consumer(B2C),Business to Government(B2G),
Consumer to Consumer(C2C),Business to employee(B2E).

Example of Different types of e-commerce:


Business to Business(B2B) Sindabad.com

Business to consumer(B2C) Ajkerdeal, Bagdoom, Daraz, Othoba,


Amikinee, Kiksha etc.
Business to Government(B2G) Government e-shop policy in Bangladesh

Consumer to Consumer(C2C) Bikroy.com, clickbd.com,

Business to employee(B2E) Bdjobs, Jobs A1, chakri.com

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3. E-Commerce and Bangladesh
3.1 Beginning of E-Commerce in Bangladesh:
E-Commerce started in Bangladesh in the late 90s. The earlier E-Commerce sites were actually
gift sites targeted towards the Non-Residential-Bangladeshis (NRB) living in abroad. All the sites
were based in abroad and had branches in Bangladesh. NRBs would buy various products for their
families or loved ones and pay in credit cards. The site would then deliver the product to their
families or friends in Bangladesh.
The advancement of technology is a continuous process. In recent age it has given birth to a digital
age. Now the buyers and sellers both have much power because of the massive use of many
powerful technology as well as internet. Most of the business today’s are operating under the e-
commerce criteria over digital networks. Internet connects the people with companies.

3.2 Why we need e-commerce in Bangladesh?


1. Promote, facilitate and assist the use and application of IT in Bangladesh with a view to
improving the quality of life of its people and acquire the necessary capability to meet the
challenge of rapidly growing demands of the information age;
2. Create opportunity for all citizens, including the disadvantaged and those living in remote areas
to have adequate access to Information Technology;
3. Set up appropriate e-commerce organizational and institutional structures with clearly defined
functionality and delegation of authority so that it helps the country in rapid economic growth.
4. It formulates measures to develop-world-class human resources in various areas of IT and
business.
5. It improves the skill level of commerce personnel already working in various fields.
6. It helps establish and maintain professional standards of IT education and training.
7. Using of e-commerce helps build a map for the infrastructure development in Banking,
Telecommunication, Legal framework and Macroeconomic Policy.

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3.3 E-Commerce in Different Sectors in Bangladesh:
Despite being a under developed country, selected segments of the Bangladeshi business
community has embraced technology with reasonable success. The Facsimile in the 1980‟s and
mobile telephones in the 1990‟s popularized modern technology in the mass market. Personal
computers and the Internet are also emerging as day-to-day business tools. These positive
indicators are favoring the prospects of e-commerce in Bangladesh.
• RMG Sector
• Banking on the Web (Online Banking)
• Online Shopping
• Web Hosting, Domain
• Online cards, gifts
• Pay Bill
• Education

3.4 The Existing Situation and Potential of E-Commerce in


Bangladesh:
Internet services are presently available in Bangladesh. Its usage for e-commerce by the
Bangladeshi producers to export as well as to access inputs will be dependent on their willingness
and ability to use this medium as well as that of the buyers of final products and the sellers of
intermediate goods and services.

Figure 1: The Three Dimensions of E-Commerce

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Figure 1 depicts the three dimensions of e-commerce. Business-to-Consumers (B2C) ecommerce
is practically non-existent within Bangladesh, while a very limited level of Business-to-Business
(B2B) and Business-to-Government (B2G) transactions exists. The potential for use of e-
commerce by Bangladeshi consumers and businesses with foreign firms is much brighter, and can
play an important role in boosting the country’s exports. A significant volume of B2G is also
possible, as the government remains the biggest spender.

Source: International Telecommunications Union, Millennium, October 1999, Geneva

3.4.1 Business-to-Consumer (B2C) Scenarios

Business-to-Consumer (B2C) e-commerce is unlikely to be of much use in the foreseeable future


in Bangladesh. At the domestic level, low per capita income, limited infrastructural facilities (e.g.
low tele density), weak legal environment (inadequate contract laws, poor implementation and
enforcement), and lack of trust and confidence between business and consumers are going to
hinder B2C. In the backdrop of such limitations, the low wage economy, with high levels of
unemployment and underemployment, will continue to rely on the physical presence of buyers and
sellers during a transaction in most cases. B2C for cross border trade is inhibited by the factors
suggested for the domestic front.

3.4.2 Business-to-Business (B2B) Scenarios

As mentioned before, the Business to Business (B2B) scenario prevails in Bangladesh to a very
limited extent. The B2B scenario exists mostly in the export sector, especially in the Ready Made
Garments (RMG) industry. RMG has the lion’s share of the export earnings in Bangladesh,
accounting for 75 percent of total exports. The current value of annual exports of the RMG sector
is close to $4.35 billion. The RMG sector has begun to use the Internet, and its dependence on e-
commerce is likely to grow significantly in the coming years. E-commerce through the Internet is
poised to be an effective business tool for the RMG exporters. The Internet would enable them to
seek information about potential buyers as well as raw material suppliers.
• RMG Sector: The RMG sector emerged during the early 1980s in Bangladesh and
information has been the strategic partner in its phenomenal growth. Telex was the only
tool of cross border data communication in those days. International courier services were

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the means of receiving the approved designs from the buyers. The Facsimile machine, in
the mid-80s, radically replaced both of these orthodox communicating media (i.e. telex and
courier). This “Office Automation Equipment” contributed towards accelerating RMG
exports. Faster and cheaper data communications coupled with real-time design-pattern
development enabled the buyer and manufacturer expediting business negotiations.

• Oil and Gas Sector: International Oil Companies (IOCs) are the dominant players
in the exploration and production of the oil and gas industry. IOCs use the vendors' web
pages extensively in order to obtain product information. This exercise is also limited to
the international vendors as the Bangladeshi business community has yet to become
sufficiently cyber-centric. The IOCs make all the payments to the international vendors
through Telegraphic Transfer. This is one good example of making cross border payments
without following the complex mechanism of the Letter of Credit (L/C). The local vendors,
however, receive their payments by check.

3.4.3 Business-to-Government (B2G) Scenarios

The government is a major buyer of goods and services from the private sector. Typically, the
government procures goods and services by inviting tenders. This has been the traditional method
of any government procurement for goods and services. Tender notices are published in the major
national dailies followed by selling the Request for Proposal (RFP) documents to the interested
bidders.
Bidders also obtain the RFP document “unofficially” for a comprehensive understanding of the
scope of work‟ as well as for assessing their own capability. The availability of the RFP and other
relevant documents on-line provides an alternate choice, thereby reducing the monopoly rent that
can be extracted. In order to prevent such unfair practice, the Bangladesh Telegraph and Telephone
Board (BTTB) initiated publishing the RFP documents of selected projects in its website.

In addition, transactions involving information collection, obtaining various governmental forms,


registering activities can be conducted on-line. This will reduce time costs, corruption and the
necessity of going through lengthy bureaucratic procedures as well as increasing transparency.

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3.5 Overview of Implementation Stage of E-Commerce in
Bangladesh:
1. Ministry of Commerce, Ministry of Information and Communication and Planning

Commission jointly implementing the e-commerce in Bangladesh


2. There is e-Commerce committee headed by commerce secretary

3. Ministry of Information and Communication is working for enacting a law regarding

“Electronic Transaction act”


4. Online order from foreign buyer has started

5. www.registrarofcompniesbangladesh.com here registration of joint stock company started


as online

6. Online non-financial transaction has started by all bank from 31-7-2002

7. Intra-bank transaction started from 31-7-2003

8. About 2 months Bangladesh Bank give permission of Ecommerce in local currency


through banks within the country.

3.6 Some E-Commerce Shop in Bangladesh:

1. www.chorka.com
2. www.hutbazar.com
3. www.cellbazar.com
4. www.muktabazaar.com
5. www.bikroy.com
6. www.banglacommerce.com
7. www.bdjobs.com
8. www.premium.com
9. www.shoppingcard.com

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4. Present Status of E-Commerce in Bangladesh
4.1 Number of e-commerce & f-commerce in Bangladesh:
According to the ecommerce Association of Bangladesh (e-cab) currently there are 1000 e-
commerce entrepreneurs in the country who are running their business though websites & 8,000
entrepreneurs of f-commerce who run their business with Facebook pages. Registered e-cab
company almost 500 .
Source:
 The Daily Star: http://www.thedailystar.net/business/tradeshi-ties-alibaba-e-commerce-
1291180

4.2 E-commerce Growth Rates & Usage Statistics in Bangladesh:

This chart will show the current growth rates, quarter-on-quarter, as of 2014 are already very high.
Growth rates of over 30% quarter-on-quarter are not commonplace for most sectors in Bangladesh.
The predicted growth rates for 2015 and 2016 are even higher and imply a persuasive case for
more market entry and business expansion in this sector. Internet penetration is 5% penetration,
Mobile penetration is 23%, e-commerce sales: USD 38.1 million commerce annual growth rate:
200%+ (2013-2016)

Source:
 Dhaka Tribune:http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-
bangladesh
 Payza Blog: https://blog.payza.com/e-commerce/country-spotlight/country-spotlight-
understandingconsumers-cross-border-e-commerce-bangladesh/

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4.3 E-commerce Trend in Bangladesh:
Here is the e-commerce present scenario of ecommerce in Bangladesh from (Jan, 2016 to Mar,
2017).

Source: https://trends.google.com/trends/explore?date=2016-01-01%202017-03-
20&geo=BD&q=e-commerce%20in%20Bangladesh

4.4 E-commerce Delivery Ration in Bangladesh: More than 50k people are
engaged with e-commerce business. At present per day approximately 20 thousands & per month
5-6 lakh parcel was delivered all over the country.
Source:
• e-cab blog: http://blog.e-cab.net/ecommerce-orthonitike-aro-canga-korbe/

4.5 E-commerce Age Brackets & Statistics in Bangladesh:


The current consumer demographic of E-commerce in Bangladesh is primarily made up of youth
with male consumers making up the majority (75%). The most prevalent age group is 26-30 years
old consisting of 50% of the consumer group. Majority of the consumers are either young
professionals (44%) or university students (33%) with one-third of them has a monthly income
of BDT 30K+. Fashion wear and consumer care products are the top selling categories in the
market.

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[Source: Light castle partners survey on Digital Consumers, 2016, support
document]

[Source: https://hifipublic.com/2015/07/12/kaymu-releases-survey-report-on-
bangladeshs-e-commerce/]

4.6 E-commerce Users in Bangladesh:


The most actively involved e-commerce users in Bangladesh fall under the age bracket of 25-34
years where 83% are male & 17% are female of the total activity. New online shopping visitors
stand at 49% of the total traffic, while returning visitors are 51% [5] 73.5% of the respondents
surveyed have bought things as varied as books or show tickets online at least once in the last 12
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months, while 13.1% have considered online shopping but have not progressed till product
purchase phase yet. 43.2% of the online shoppers are occasional buyers, meaning they sometimes
buy things online. About 28.7% of these online shoppers have been frequently buying things
online.

Source:
• Prothom alo: http://en.prothom-alo.com/economy/news/71583/Youths-mostly-active-in-
Bangladeshe-commerce

[Source: Light castle partners survey on Digital Consumers, 2016, support document]

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[Source: Light castle partners survey 2016, support document]

[Source: Light castle partners survey 2016, support document]

Only 23% of Internet Users in Bangladesh Shop Online.

Source: Future startup: http://futurestartup.com/2016/07/20/only-23-of-bangladeshi-internet-


users-shoponline/

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4.7 E-commerce traffic in Bangladesh:
Over 80 percent of e-commerce traffic comes from three major cities in Bangladesh; Dhaka is top
with 35% of total traffic, closely followed by Chittagong at 29%. But Gazipur in third place with
15% of the total e-commerce activity each year will come as a surprise to many.

Source: Prothom alo: http://en.prothom-alo.com/economy/news/71583/Youths-mostly-active-


in-Bangladeshe-commerce

[Source: Light castle partners survey 2016, support document]

[Source: Light castle partners survey 2016, support document]

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4.8 E-commerce Transaction in Bangladesh:

Bangladesh has led to a 72% growth in ecommerce transactions over the course of 2016, with
business-to-consumer (B2C) accounting for 90% of all transactions. With over 60% of online
shoppers between the ages of 25 and 34, the market is young and tech-savvy. Cash-on-delivery is
still the most popular mode of payment for ecommerce transactions.78% of the online shoppers
are low-cost item buyers. Average basket size for online shopping remains below 1000 BDT with
higher concentrating in lower price groups. However, this base is to pick up as consumers show
interest in trading up for their online purchases in near future.

[Source: Light castle partners survey 2016, support document]

Bulk share of online shopping takes place before and during cultural events (like Pahela Baishakh,
Bijoy Dibosh) and major religious festivals (like Eid, Puja) in Bangladesh. This finding resonates
with our occasional buyer heavy respondent base which purchase/ increase purchasing things
online around specific shopping seasons within a year. Quite interestingly, during sales/discounts
offered by stores, only 11.33% of the respondents increase their order size and/or frequency.

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[Source: Light castle partners survey 2016, support document]

4.9 10 Trending Products to Sell Online in 2017:


Smart watch, Facial Mask, Phone cases, Enamel pins, Bluetooth speakers, Dad Hats, VR Products,
Fairy Lights, Rechargeable Lighters, Highlighter cosmetics.

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4.10 Recent Popular E-commerce in Bangladesh:

[Source: Daraz survey 2016, support document]

Approximately 60% of the participant picked Daraz as the top site. While Kaymu being the second
one with 29% of the people’s support to rival Daraz. Only 7% and 5% people chose Pickaboo and
Bagdoom respectively as the top site in Bangladesh.
Most 5 popular e-commerce site in Bangladesh list are given below:
• Daraz.com.bd (https://www.daraz.com.bd/)
• Ajkerdeal.com (https://ajkerdeal.com/)
• Bagdoom.com (https://www.bagdoom.com/)
• Chaldal.com (https://chaldal.com/)
• Rokomari.com (https://www.rokomari.com/)

Source: News39:
http://news39.net/%E0%A6%AC%E0%A6%BE%E0%A6%82%E0%A6%B2%E0%A6%BE%E
0%A6%
A6%E0%A7%87%E0%A6%B6%E0%A7%87%E0%A6%B0-
%E0%A6%85%E0%A6%A8%E0%A6%B2%E0%A6%BE%E0%A6%87%E0%A6%A8-
%E0%A6%B6%E0%A6%AA-%E0%A6%AC%E0%A6%BE-%E0%A6%87/

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Daraz.com.bd: Daraz a globally leading e-retail brand officially launched its operation in
Bangladesh as daraz.com.bd, a venture by Rocket Internet one of world's largest Internet &
mobile platforms.

Founded: 2014
Founder & Chairman: Sumeet Singh
Category: Daraz Bangladesh already maintain 13 category they are Men’s Fashion, Women’s
Fashion, Phones & Tablet, Tv, Audio & Cameras, Computer & Gaming, Appliances, Home &
Living, Sports & Fitness, Beauty & Health, Baby, Kids & Toys, Automotive & Motorcycles,
Gifts, Grocers shop, Pet Suppliers.
Focused Category: Electronics, Mobiles, Home & Living, Health & Beauty.
Alexa ranking in BD: 37
Alexa ranking in Global: 13,451
Daily Page view: 161,621
Advertisement cost per day: $485
Advertisement cost per month: $14,546
Traffic source: 94.4% from Bangladesh & rest of others company.
Negative Traffic Growth: Daraz.com. bd's recent traffic trend shows 8.43% Negative growth.
Website page loading time: 90% page load within 2 second.
Facebook like: 4,146,387(verified)
Employee: approx. 40 employees (after merge with kaymu.com)
Age Purchase Ratio: From this analysis we can clearly see that the majority of the people that’s
highly involved are people who are in their early 20’s, which is 90% of my sample population.

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The second largest groups are the people in their late 20’s which is 7%. The teenagers are at 3%
and out of 41 individuals that participated in the survey none of them are over thirty.

[Source: Daraz survey 2016, support document]

Gender Purchase Ratio: From the chart above we can see that there isn’t a very big gap between
Male and Female user regarding their involvement with e-commerce businesses. While the male
participants are 56% and the female are at 44%, just a mere 12% gap. So we can see although the
men are being more involved but the women aren’t falling behind. So Daraz should continue to
target both male and female as their consumers.

[Source: Daraz survey 2016, support document]

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Product Ratio: 90% original/brand Product & 10 % copy/non brand product.
Membership: E-cab Member
Source:
 Free website report: http://www.freewebsitereport.org/www.daraz.com.bd#est-dtl

 Alexa: http://www.alexa.com/siteinfo/daraz.com.bd#?sites=daraz.com.bd

Ajkerdeal.com: Ajkerdeal.com is the largest online shopping mall and a sister concern of
bdjobs.com (recently bdjobs has sold their 25% stake to the Australian number one job portal
SEEK international at 38.5 crore.) & beshto.
Source: Free website report: http://www.freewebsitereport.org/www.ajkerdeal.com

Founded: 2011
Founder & CEO: A K M Fahim Mashroor
Category: 35 main categories.
Investment: Fenox Venture Capital, 10 crore Innotech
Total Product: More than 100000 products
Merchants: More than 2000.
Focused Category: Those product which price is tk. 99 to tk.1999, Very cheap Gadgets Items
Alexa ranking in BD: 150
Alexa ranking in Global: 38225
Daily Page view: 57,137
Advertisement cost per day: $171

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Advertisement cost per month: $5142
Traffic source: 90% users come from Bangladesh.
Positive Traffic Growth: 1.60%
Website page loading time: 90% page loaded at 4 sec.
Facebook like: 456,976
Regular Delivery: Around 1000
Employee: 150(approx.)
Age Purchase Ratio: Middle class, 18-36 year.
Ajkerdeal Agents: 12 districts.
Order Ratio: 70% order comes from outside Dhaka.
Ajker deal Facebook Statistics:
Gender Purchase Ratio: Male 80%, Female 20%
Product Ration: 80% replica/copy product & 20% brand product.
Membership: E-cab Member.
Source:
 Alexa: http://www.alexa.com/siteinfo/ajkerdeal.com#?sites=ajkerdeal.com

 Free website report: http://www.freewebsitereport.org/www.ajkerdeal.com

 Future Startup: http://futurestartup.com/2015/12/06/fenox-venture-capital-launches-in-


dhakaannounces-200-million-fund-for-local-internet-startups/

 Future Startup: http://futurestartup.com/2016/06/27/ajkerdeal-raises-undisclosed-amount-


newfinancing/

 Future startup: http://futurestartup.com/2016/07/30/fahim-mashroor-on-ajkerdeal-


ecommerce-andinternet/

 Future Startup: http://futurestartup.com/2016/12/19/inside-ajkderdeals-big-plan-take-e-


commercebeyond-dhaka/

 Social bakers:
https://www.socialbakers.com/statistics/facebook/pages/detail/1501510493482910ajkerd
eal

 Pitchbook: https://pitchbook.com/profiles/ajkerdeal-profile-investors-funding-valuation-
and-analysis

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Bagdoom.com: ‘Bagdoom.com’ as the new identity of ‘akhoni.com’. Bagdoom.com has been
designed with splendid experience of purchasing online with more fun and more exciting
Bagdoom.com has arrived with more convenience, ease and better experience of online shopping.

Founded: 2010
Co-Founder & CEO: Syed Kamrun Ahmed
Category: 4 main categories. Men, Women, Electronics, Home & Living.
Focused Category: Fashion & Lifestyle & e-store
Alexa ranking in BD: 650
Alexa ranking in Global: 83,235
Daily Page view: 28,650
Advertisement cost per day: $85.95
Advertisement cost per month: $2,578
Traffic source: 86.9% come from Bangladesh.
Negative Traffic Growth: 55.49%
Website page loading time: 90% page complete with 7sec.
Facebook like: 832,694 (verified)
Employee: 15-20
Age Purchase Ratio: Teenage 18-28
Order Ratio: 200+ daily orders
Gender Purchase Ratio: Teenage specially girls.
Membership: E-cab Member.

Source:
 Social bakers:
https://www.socialbakers.com/statistics/facebook/pages/detail/193946357317792bagdoo
m-com?country=bangladesh

 Alexa:
http://www.alexa.com/siteinfo/bagdoom.com#?sites=bagdoom.com&sites=ajkerdeal.com

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Chaldal.com: Chaldal.com is an online grocery shop in Dhaka, Bangladesh.

Founded: 2013 Co-Founder & CEO: Waseem Alim


Number of Customer: 45000 registered [26]
Investor: Sajid Islam [27]
Category: 12 ( Fruits & vegetables, Meat & Fish, Cooking, Beverages, Home & Cleaning, Pest control,
Office products, Beauty products, Health products, Pet care, Home appliances, Baby care)
Total Product: 5 million.
Focused Category: Grocery product
Alexa ranking in BD: 660
Alexa ranking in Global: 129,463
Daily Page view: 38,657
Advertisement cost per day: $116
Advertisement cost per month: $3,479
Traffic source: 96.3% from Bangladesh.
Positive Traffic Growth: 48.32%
Website page loading time: 90% complete at 5 sec.
Facebook like: 159,372
Chaldal Facebook Statistics in Bangladesh:
Average Basket order size: $20
Employee: 350 officers
Warehouses: 5
Age Purchase Ratio: All (specially worker women)
Order Ratio: 600 0rder per day.

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Sales growth: 50% and 300-400% growth in every six month.
Membership: E-cab Member.

Source:
 Daily sun: http://www.daily-sun.com/post/147214/ecommerce-in-Bangladesh-has-
enormous-growthpotentials

 Future startup: http://futurestartup.com/2016/06/07/waseem-alim-of-chaldal-part-one/

 Fsindex: https://fsindex.co/organizations/chaldal-com

 Alexa: http://www.alexa.com/siteinfo/chaldal.com#?sites=chaldal.com

 Free website report: http://www.freewebsitereport.org/www.chaldal.com

Rokomari.com: Rokomari.com is an e-commerce venture of “Onnorokom Group Web


Services Ltd”, a sister concern of Onnorokom Group.

Founded: January 19, 2012


Founder & CEO: Mahmudul Hasan Sohag
Category: Book
Total Customer: Around 15k
Total Sell: 60 lakh
Total Product: More than 30K
Focused Category: Book (local & foreign)
Alexa ranking in BD: 190

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Alexa ranking in Global: 49,759
Daily Page view: 46,106
Advertisement cost per Day: $138
Advertisement cost per month: $4150
Traffic source: 83.8%
Negative Traffic Growth: 11.94%
Website page loading time: 90% page load at 2 sec
Facebook like: 1,950,667
Age Purchase Ratio: All ages people
Membership: E-cab Member.
Source:
 Prezi: https://prezi.com/v--5dybpvp5x/rokomaricom/

 Dhaka courier: http://www.dhakacourier.com.bd/rokomari-com-making-a-difference-for-


books-inbangladeshi-e-commerce/

 Alexa : http://www.alexa.com/siteinfo/rokomari.com#?sites=rokomari.com

 Free report: http://www.freewebsitereport.org/www.rokomari.com

 Social Baker:
https://www.socialbakers.com/statistics/facebook/pages/detail/164315863670362rokomar
i-com

****** Some Important Facts in e-commerce & f-commerce :

• 50% people are very positive to purchase product from e-commerce


• 70% people go online using mobile phone & Wi-Fi connection.
• Age groups between 19-24 & 25-40 spend highest amount of time online.
• The people of Dhanmondi spends more time than Uttara, Mirpur & Gulshan.
• About 70% visit e-commerce sites between one & five times a month.
• Higher income groups and Dhanmondi respondents are the most likely to visit ecommerce
sites compared to respondents in other locations.
• 70% purchasing products online one or two times a month.

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• Transaction sizes for e-commerce purchases are still relatively small. About 70% of
ecommerce users spend less than BDT 5,000 a month.
• 30% people using a website compared to 45% who used a Facebook Page for purchasing
products online.
• 20% order counting as a fraud in this business.

This information are collected from Light castle partners survey on 400 Digital Consumer in
2016.

Source: Financial express: http://www.thefinancialexpress-bd.com/2017/02/06/61136/A-closer-


look-at-ecommerce-in-Bangladesh/print

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5. Problems of e-commerce in Bangladesh
Out of 64 districts, Internet services are available only in 6 major district headquarters. BTTB is
planning to gradually roll out an IP network up to the 64 district headquarters. In January 2002,
the Internet facilities were extended to 12 districts. The project is running on very fast and today
almost 40 plus districts are getting Internet facilities. Followings are the barriers of e-commerce in
Bangladesh:

 Lack of legal acceptance: there is no proper legal support for e-commerce or


online business sites in Bangladesh. Government till now not introduced a full online
or e-commerce law for promoting this sector of business.
 Lack of development of it infrastructure: in Bangladesh only 14.40per cent
of populations are covered in internet access and most of the internet users are in mobile
internet users. So there is a huge gap between the total number of population and total
number of internet users in Bangladesh because of lacking of proper of IT
infrastructure.
 Lack of expert professionals in it: we have so many public and private
universities and they are enhancing their curriculum on the basis of theory and practice.
But they don’t improve the practical and IT knowledge resources in their educational
institutions.
 High cost of internet: the broad band internet costs are relatively high in
Bangladesh compare to Asian region. The broad band facilities are also cover the short
range of total population.
 High cost of electronic devices: till now in Bangladesh the price of all
computers, computer peripherals and computer related devices are sky scraper. The
mass richness of computer and computer technology are far behind from the low and
middle income group people of Bangladesh.

 Seasonal f-commerce business: there are so many Facebook pages in


Bangladesh which are operating as a seasonal online business organization. They

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generally sell a certain amount of products and at a certain time they have been
diminishing as a result customers are losing their initiative to buy from online.
 Lack of trust on e-commerce: trust is the most important factor in e-commerce
without trust e-commerce can’t flourish in Bangladesh. Many online businesses have
no validity in their operation of business and this is the major problem in Bangladesh.
 Unavailability of internet services: in Bangladesh unavailability of internet
facility is one of the major challenges for flourishing e-commerce operation. Though
14.4per cent of the population has access to the internet but still the expense and
infrastructures is out of reach from the rural as well as urban people.
 Problem in product selection: suitable products for basic demographics for
example age; gender and ethnicity, market trends and customization of customers,
buying habits, psychological and geographical factors and proper design of the
products are major obstacles for e-commerce industry in Bangladesh.
 Complexity in payment procedure: payment is the very fundamental issue in
e-commerce. Less user friendly, lack of trustworthiness, complex banking system,
difficult access on internet etc. are the main reasons for not having a proper payment
procedure in Bangladesh. Though in private sectors payment aggregators like SSL
commerce is working as HUB and making e-commerce easier.
 Unclear product delivery & return policy: On time product delivery and
complicated return policy are still a challenge in e-commerce. Lacks of proper delivery
time of product, unfriendly attitude from parcel companies, undefined return policy etc.
Are the major return and delivery problems in Bangladesh.

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Solutions of e-commerce in BD:
To make ecommerce successful in our country we need the help of all aspect of people as well as
govt. and business industry to cope up or overcome the following limitations:

 Make an ICT act: We should make proper law regarding E-commerce. Our ICT act
should be updated and modernized.
 Make proper Internet infrastructure: Each and every upozila must have a
coverage of high speed broadband connection. The remote people and unprivileged
community should be connected with broadband connection.
 Make ICT and e-commerce expert: Bangladesh should take initiative to make
ICT,IT,CSE,CE expert. For this reason they can make ICT ,IT university in each division.
 Low cost of Internet: Make sure that every person can use the internet connection. As
our country is under developing country so government give the subsidiaries in this sector.
 Tax deduction from the electronic devices: All electronic and mechanical
products will get tax deduction and rebate from the government each fiscal year in
Bangladesh.
 Give a reorganization: Like all other forms of business e-commerce and e-trade
should be recognized by the government of the Bangladesh.
 Make an e-commerce portal: To build a trust among the buyers and sellers in the e-
commerce business government make an organization to monitor this. Such as E-
commerce monitoring Authority(ECMA).
 Make an easy payment systems: To make better e-commerce and e-business in
Bangladesh we should make an easy payment method around the country. An universal
and easy payment can make the e-commerce as a successful business.

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6. SWOT ANALYSIS

To find out the viability of a particular product we must perform a SWOT Analysis of the
product. This will analyze the Strengths, Weaknesses, Opportunities, and Threats of the
particular product. For analyzing the performance of e-commerce in Bangladesh, the following
SWOT Analysis is considered.

Strengths
 Only a few organizations are now offering internet services in solving transaction
problems.

 E-commerce is convenient as the service is available all the time at just a click away.

 Faster buying/selling procedure

 There is no theoretical geographic limitations

 No need of physical company set-ups

 E-commerce will require less manual workers.

 It is cheap both for the companies and the customers.

 In banks will be able to lower overhead costs and make more profit out of it.

 It requires less man power for banks; customers can save time and avoid hassles.

Weaknesses
 Security breakdown of the system will have a problem with the identification of the
individual who is initiating the transaction.

 The internet infrastructure of our country is not that much supportive to provide all time
access to the web.
 Lack of security and privacy

 Very minimum number of users of web sites.

 Small number of Credit Card users

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Opportunities
 Non- branch business is becoming popular in our country. Many e-based companies
are now trying to offer non-branch business facilities.

 A person can withdraw or deposit money in any branch of the organization he has a
membership with them.

 Moving to internet business will allow the companies to offer non-branch business
facilities.

 The internet services are becoming very common to us. So a service offered through
the internet will be widely accepted in the near future

 Lower cost. Higher profit business. Quick and 24 hour

 Free staff to provide value added service

Threats

 People have concern about security and privacy.

 In the field of IT new technology is coming every day.

 The movement towards online business might marginalized the customers who do not
have internet access or who are not technologically sound.

 Despite the presence of online Internet service in Bangladesh,


 its scope is largely underutilized.
 Poor telecommunication systems,
 low buying power of potential clients,
 lack of institutional support.
 Lack of awareness at government level

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7. Conclusion Matter

7.1 Recommendation:
In Bangladesh, there is a great deal of interest in B2C E-commerce; however, due to various
economic, infrastructural and legal reasons it has not spread. Most important companies,
associations, chambers and now most of the government offices have set up websites. These sites
mainly provide information about the organization, and its products and services. There are very
few sites where financial transactions can be completed. Main reasons for low ecommerce
transactions are absence of legal framework for completing an electronic business or financial
payment system, low Internet usage due to lack of adequate telecom facilities, and overall lack of
confidence in the security and reliability of B2C E-commerce transactions. Several factors are
important in the online marketing compared to traditional method:-

 Pricing is an important consideration for standard products. Customers compare products


available on the Internet and usually buy the lowest total price offerings. It is also necessary to
offer prices lower than the traditional outlets to encourage buyers to shop online.
 There should be an EFT (Electronic Fund Transfer) Gateway, which will connect all finance
and banking institutions, ATMs, POS and related websites. Such Gateway will speed up the
transactions among banks, commercial institutions.
 A CCG (Credit Card Gateway) should be established. A credit card gateway is a server that
makes online credit card transactions safe (Skinner, 2005).
 To expedite the installation of second submarine cable joining for extending high-velocity
internet facilities. Yet at present is the time to plan for the installing of third submarine cable.
 Government might invite individuals and private sectors to extend broadband joining in rural
areas under public private partnership. In that connection, NGOs working in the remote areas
possibly involved. This will then be measured as government-private-NGO Corporation.
 Mass-produced regularly purchased uniform products should be made easier to sell online than
custom-produced items..
 To accept steps for cutting internet joining fees and the price of bandwidth.

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 If the product and service are described in unique terms or combination of terms the searchers
are likely to use the search engines which will find that offering more easily and present it to
potential customers.
 Service business is particularly suited to the Internet as their products can be more easily
produced and delivered with digital process. Digital information can be collected and
disseminated over the Internet at lowest cost.
 To ensure security of credit purchases over net as a standard called ‘Secure Electronic
Transaction (SET)’ has been adopted by MasterCard and Visa that involves the use of digital
certificates to
 Bangladesh Telecommunications Regulatory Commission (BTRC) should be established
independent of the government control.
 Voice over Internet Protocol (VoIP) and private international gateway for voice and data should
be allowed.
 Government officials are to be oriented on the benefits of e-commerce. For instance short course
can be offered at training centers such as the Public Administration Training Center (PATC).
 Business associations and organizations should be made aware of the benefits of e-
commerce. BGMEA can play a significant role in this.
 Greater competition among the Internet Service Providers (ISPs) should be promoted and new
ISPs should be encouraged to come into business.

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7.2 Conclusions:
Nowadays every second’s world moving so fast only used by technology positive side, Bangladesh
is a small and developing country but it’s time to changing. In the world most of the country day
by day more popular B2C E-commerce system even Asian some country; China, India, South-
Korea and Japan.

Despite the encouraging state of implementation, e-commerce can never be deployed until and
unless an Electronic Fund Transfer (EFT) Gateway and a Credit Card Gateway (CCG) have been
established. These two Gateways will eliminate the security issues in e-commerce and enhance the
e-transactions. In addition to that, creating awareness among the citizens and the business
organizations is essential for the implementation and growth of e-commerce in Bangladesh.

Synergy between telecommunications and information technology has the proven capability of
monitoring and administering the real-time transactions. Therefore, liberalizing the telecom and IT
sectors as well as reforming the country’s financial and commercial procedures is the preconditions
of successfully implementing ecommerce in Bangladesh.

From our study we come to conclusion that through this e-commerce, Bangladesh can be prosperous
in the business arena of the world. All the major countries of the world are trying to embrace this
technology with open arm. We cannot just wait and see this tremendous phenomenon. We have to
take active part in adopting this technology. If we become unsuccessful, the ray of modern era will
never come to our country. So for the betterment of the nation we have to take drastic measures as
early as possible. Our hope for future lies in the hand of e-commerce.

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References:

 The Daily Star: http://www.thedailystar.net/business/tradeshi-ties-alibaba-e-


commerce-1291180

 Dhaka Tribune: http://archive.dhakatribune.com/business/2016/jan/31/e-commerce-


bangladesh

 Alexa: http://www.alexa.com/siteinfo/daraz.com.bd#?sites=daraz.com.bd

 Free website report: http://www.freewebsitereport.org/www.daraz.com.bd#est-dtl

 Prothom alo: http://en.prothom-alo.com/economy/news/71583/Youths-mostly-active-


in-Bangladeshe-commerce

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users-shoponline/

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 Alexa: http://www.alexa.com/siteinfo/ajkerdeal.com#?sites=ajkerdeal.com

 Free website report: http://www.freewebsitereport.org/www.ajkerdeal.com

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in-dhakaannounces-200-million-fund-for-local-internet-startups/

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amount-newfinancing/

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 Future Startup: http://futurestartup.com/2012/02/19/fahim-mashroor/

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 Social bakers:
https://www.socialbakers.com/statistics/facebook/pages/detail/1501510493482910ajk
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 Pitchbook: https://pitchbook.com/profiles/ajkerdeal-profile-investors-funding-
valuation-and-analysis

 Social bakers:
https://www.socialbakers.com/statistics/facebook/pages/detail/193946357317792bag
doom-com?country=bangladesh

 Alexa:
http://www.alexa.com/siteinfo/bagdoom.com#?sites=bagdoom.com&sites=ajkerdeal.
com

 Free website report: http://www.freewebsitereport.org/www.bagdoom.com

 Daily sun: http://www.daily-sun.com/post/147214/ecommerce-in-Bangladesh-has-


enormous-growthpotentials

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 Fsindex: https://fsindex.co/organizations/chaldal-com

 Alexa: http://www.alexa.com/siteinfo/chaldal.com#?sites=chaldal.com

 Dhaka courier: http://www.dhakacourier.com.bd/rokomari-com-making-a-difference-


for-books-inbangladeshi-e-commerce/

 Alexa : http://www.alexa.com/siteinfo/rokomari.com#?sites=rokomari.com

 Free report: http://www.freewebsitereport.org/www.rokomari.com

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