North South University
Course Title: MIS207
Submitted By:
Samira Ferdous
ID: 2112087630
Sec:9
Submitted To:
MD. Moktar Ali
North South University
E- BUSINESS IN BANGLADESH: Prospects, Problems and Operation
guidelines
1.Introduction:
E-Business:
With the term of E business or electronic business we understand doing business
electronically. However, in formal language e business means the application, information
and communication technology (ICT) in support of all the activities in business. The activities
include buying and selling of goods and services, providing customer service and technical
support, exchanging information both with organization and external stakeholders etc. e
business has similarities with e commerce but it is broad subject. As a matter of fact, it is the
system of utilizing digitized information and advanced technologies to smooth different
business processes. There are many business processes in e business. Such as; online order
processing, Customer relationship management (CRM), supply chain management and
much more.
there are many types of e business. Basically, it depends on who the final consumer is. Some
of the type of e commerce are as follows:
Business to business (B2B): it means conducting trade between two or more
business organization or companies. Conventional wholesalers and producers who
are dealing with retailers are the kind of trade generally happens in B2B.
Business to consumer (B2C): When a consumer buys product from a seller then
it is business to consumer transaction. People shopping from Flipkart, Amazon, etc is
an example of business to consumer transaction. In such a transaction the final
consumer himself is directly buying from the seller.
Consumer to consumer (C2C): A consumer selling product or service to another
consumer is a consumer to consumer transaction. For example, people put up ads on
OLX of the products that they want to sell. C2C type of transactions generally occurs
for second-hand products. The website is only the facilitator not the provider of the
goods or the service.
Consumer to business (C2B): In C2B there is a complete reversal of the
traditional sense of exchanging goods. This type of e-commerce is very common in
crowdsourcing based projects. A large number of individuals make their services or
products available for purchase for companies seeking precisely these types of
services or products.
Consumer to administration (C2A): The Consumer-to-Administration model
encompasses all electronic transactions conducted between individuals and public
administration. Some examples of applications include;
1. Education: spread information, distance learning etc.
2. Social Security: in the distribution of information, making payments, etc.
3. Taxes: filing out tax returns, payments, etc.
4. Health: appointments, information about illness, payments etc.
Business to administration (B2A): This part of e-commerce encompasses all
transactions conducted online by companies and public administration or the
government and it’s varies agencies. Also, these types of services have increased
considerably in recent years with investments made in e-government.
2.Objective
E-commerce activity promotes profitable growth by reducing customer costs,
expanding the customer's scope and delivery of unique customer experiences. For
B2B and other companies, the correct use of e-commerce has become very
important. Now, e-commerce is being developed or more precisely, it has been
evolved in digital trade, which means that all commercial travel travel has an online
experience.
The following are several e-commerce objectives:
Boosting the efficiency of service: With the continuous development of
technology, you need to improve service efficiency. By choosing an online ecommerce platform to create an online store, you can effectively reduce the cost of
management and online sales. You have several opportunities to improve the
efficiency of your service and ultimately increase the income you earn. By reducing
delivery time, you can see satisfied customers returning to your business twice as
fast. Another way is for your customers to provide similar automated services such
as status updates, invoice creation, chat support, etc. As you increase the efficiency
of delivering products or services to customers, you are creating a strong online
presence to help you sell more products.
Provide unique customer experience: Numerous e-commerce companies
operate in the market. When customers search for a product (such as shampoo),
they may click on the first three links displayed on the Google search engine results
page. All remaining links are avoided, a few people have never seen or visited. This in
itself illustrates the competition in the e-commerce market. One of the best ways to
stand out from the crowd is to provide a unique customer experience. This includes
providing a personalized experience for each customer or visitor to your online
store, website, or mobile app. Some other points to consider are 24/7 customer
service, immediate response to inquiries, interaction with customers, etc.
Increased number of loyal customer: Customers are at the core of all business
strategies. Therefore, ensuring a good customer experience is critical to business
growth. You need to meet with your clients and know where they will spend their
time. More than 60% of consumers want to buy goods and services online. If you
meet your customers where they are already active, your chances of interacting with
your business will triple. You can increase the number of loyal customers by
providing the best experience for existing customers and attracting new customers.
Developing business relations: With e-commerce as the main use, business
growth can easily be achieved. Direct communication between a company and its
customers, commercial relations can be favored. Finally, the electronic commerce
market will be enlarged.
Reduce management cost: Companies aim to reduce costs incurred to improve
their earnings. Automating e-commerce operations can significantly reduce
administrative costs. In addition, the proper use of digital marketing can help reduce
the cost of customer acquisition to the point where a business can attract customers
for free.
Developing relevant target: Growing relevant traffic for an ecommerce business
is a common goal. Whether it's an e-commerce website or an online store, building
traffic is one of the most important goals. However, you should know that not all
traffic is worth your business. If you are successful in driving traffic to your ecommerce website or store, but most of the traffic users don't need the products or
services you offer, then the traffic access will not benefit your business. For example,
your marketing strategies are appealing enough to teenagers; your business will not
get any increase in sales. Therefore, in addition to generating traffic, you need to
analyze your traffic. Here is the need to collect customer data. Collect customer data
including demographics like age, location and gender, customer preferences,
browsing history, browser history, etc. By saving this data, you can target the
relevant market.
Increasing sales: The goal of increasing sales will always remain constant and
constant for an e-commerce business. To thrive in the e-commerce industry, you
must continuously increase your sales. All other goals are set to 0 to achieve this
goal. However, you also need to look at your store analytics and determine which
marketing tactics have worked well to increase your sales. While these goals can
help you earn sales, nothing beats proven marketing tactics for your business. For
example, top-selling products, ideally top-selling products, can be used for
remarketing and get more attention. Any marketing strategies you have used before,
including email targeting and traffic increase tactics, should be reviewed and
implemented to increase sales. Based on the goals mentioned above and the
marketing tactics that really work for you, you need to design your marketing plan.
Only you can decide what is perfect for your business and what is not. Every business
is unique, so is yours!
Making responsive economic website: With the increasing use of smartphones
for online shopping, it has become essential for e-commerce businesses to use
mobile devices. In addition to building a native mobile app, like the one offered by
Builder fly, you need to build a responsive eCommerce website. This is one of the
main goals of all the best e-commerce companies. By responding, it means creating a
web page that can be viewed from a device with different screen sizes, too. Studies
say Google can rank a following website based on its mobile site. This means that
any website with a responsive design will rank above the site without. Making your
ecommerce site responsive can help you optimize it. Mobile-friendly websites
generate more traffic than others.
3.current scenarios of E-Business in Bangladesh
Recently, the e-commerce business in Bangladesh is booming. The outlook for ecommerce has grown significantly over the past few years due to better access,
storage and sustainable web population.
The use of technology in all single parts today is exceptionally common. In an era of
globalization, we can hardly discover the parts that work without the use of
technology. The single Internet has opened up a new horizon for a particular
business called ECommerce. The e-commerce business is in marketing, identification,
payment, and provision of goods and services. It is a business that utilizes the
Internet, and all operations are completed by e-commerce using the web. With a
population of 165 million and 33% of mobile internet users, Bangladesh's ecommerce market has great potential in the future. Nearby, e-commerce is in great
agreement with Mobile Financial Services (MFS) as a payment method that
complements each other and shows great guarantees for development.
As a result of the massive exploitation of innovative technologies like the Internet,
today both buyers and sellers have great power. Most of today's businesses operate
according to standards for e-commerce over digital networks. The Web connects the
public and businesses. Bangladesh's e-commerce market made a breakthrough in
2017. Since 2016, it is progressing at an astonishing 70%. The measurement of the
B2C E-commerce business market in 2017 totaled $111.15 million (about 900 crores)
for the entire retail market of 133,571 crores. Rather, India's mega e-commerce
business market size remains at $17 billion. As experts are pointing out, Bangladesh's
e-commerce business is most likely at a stage where the Indian market was 57 years
ago. As the Bangladesh eCommerce Association (e-CAB) has access to information,
the scope of the e-commerce business market has exceeded 17 billion copies in 2017
from 4 billion copies in 2016. Market indicators rely on reaching 70 billion taka
(7,000 crore) by 2021.
E-commerce business across Asia Pacific is exploding, with 71% of APAC buyers
making online purchases. Bangladesh is a notable player in the region. A total of $50
million has been invested in this sector since 2016. Of the total, $10 million has come
from foreign direct investment. But the sum is much higher, as Chinese e-commerce
company Alibaba recently acquired Daraz, a major online marketplace. Bangladesh
retail e-commerce is developing at 72% per month. Currently, the sector includes
35,000 individuals and 25,000 small and medium-sized enterprises (SMEs). The
number of e-commerce business sites and e-commerce pages is 2,500 and 150,000,
respectively. Delivery volumes are being assessed between 15,000 and 20,000 per
day at the retail level.
International Finance Corporation, the private lending and investment arm of the
World Bank, has been following Bangladesh's business ecosystem for the past few
years. As they effectively observe and their finalist 43 new companies, Chaldal is
accidentally overrunning the rundown as a potential investment organization, an ecommerce platform. Foreign investors as well as our government are playing an
important role in revitalizing Bangladesh's e-commerce sector. To support their own
investors, the government has deployed a long-awaited national digital commerce
policy. Under the new policy, external foreign investors cannot hold more than 49%
stake in Bangladesh's e-commerce business. This method has been employed to
protect and strengthen local investors. This policy is obliged to clearly highlight the
specifics of products sold online by e-commerce entities. It contains product quality
and return policies to prevent cheating and protect your rights. E-commerce
companies are also required to sign agreements with suppliers of their products,
delivery channels, and payment gateways to ensure that customers' rights are
adequately protected in order to make their supply chain transparent. You are now
ready to draft your e-commerce policy. It is sent to the Cabinet for final approval.
As market analysts point out, Bangladesh's e-commerce business market is projected
to flood $20 billion by 2020, and according to Goldman Sachs, India's online retail
market is expected to reach $69 billion. Global financial investors going to India start
by stopping by Bangladesh. With business potential in Bangladesh, Delhi-based
digital marketing firm MoMagic Technologies has launched the e-commerce
platform Pickaboo. This is the timing of $600,000 per month. Large-scale
investments such as IFC and Alibaba have only been involved in the e-commerce
landscape of Bangladesh, and large-scale investors like them probably understand
the potential and put these e-commerce space resources in it. The
E-commerce business has changed many traditional habits of trading and brought
progressive changes to the economy. Bangladeshis are now using the Internet to
improve their lifestyle. Vendors can save a lot of time doing online transactions so
they can receive consumer orders on the internet. Several commercial activities in
large corporations and supermarkets use websites to take orders from consumers
and send specific products to them. According to the statistics of the past few years,
the growth rate in this sector is good. To make it sustainable, both governments and
businesses need to be more conscious and take appropriate action. The use of
business intelligence also helps e-commerce businesses get a closer look at their
customer requirements.
The industry is growing very rapidly if e-commerce companies can be secure and
provide the best service to their customers.
4.problems of E-Business:
E-commerce may have started to show interest in South Korea by domestic and
foreign companies. They are interested in doing business here if they provide the
right facilities and environment. Foreign investors are really interested in this area.
As a result, overseas locals are paying attention to this digital business. The data
entry industry also depends on the expansion of e-commerce. We need overall
complete and practical guidelines so that we can configure this digital business
efficiently and effectively. In our study, we were aware of the following basic
infrastructure issues that exist in South Korea's e-commerce sector:
1) Insufficient delivery mechanism.
2) Relatively low Internet penetration.
3) Lack of a robust online transaction system.
4) The prevalence of online fraud.
5)Untapped online marketing practices.
5. Standard operating guide line 2021 given by Bangladesh bank and
ministry of commerce:
Hafizur Rahman, additional secretary to the ministry and head of the government's central
digital commerce department, said that if the product is delivered to a location that is not in
the seller's city, the e-commerce company will have a maximum of 10 days. to the media
after an inter-ministerial meeting on Wednesday. Hafizur said that for buyers in a city other
than sellers, e-commerce companies will have up to 10 days for delivery. Hafizur hopes that
implementing these guidelines will ensure discipline in the rapidly growing sector and create
healthy competition. He said that various sections were added in the manual so that
customers would not be misunderstood. If a business does not comply with these rules, the
government can close the business and consumers can file complaints with the Consumer
Protection Bureau and other competent courts.
Shomi Kaiser, president of the E-Commerce Association of Bangladesh (ECAB), said the
guidelines will ensure fair competition in the e-commerce sector and protect the interests of
consumers.
“We have heard for a long time that buyers have been deceived in different ways at
different times. The guidelines include appropriate measures to eliminate these anomalies.”
They also hope that these guidelines can be implemented as soon as possible. She said that
companies can move forward by breaking the existing chaos in the e-commerce sector,
adding that E-CAB will play a monitoring role in the implementation of the guidelines.
According to the draft guidelines, e-commerce platforms will deliver the ordered products
within 48 hours after receiving the advance payment, and will notify customers via SMS,
email or phone.
The courier or company will deliver the item to the customer within the next 72 hours.
For the goods purchased in advance, the e-commerce company must prepare the displayed
goods in its own warehouse or a registered third-party warehouse in accordance with the
guidelines.
“If the product is not ready for delivery within 72 hours after receiving the payment, the
company will not charge more than 10% of the price in advance,” said the Bangladesh
Bank’s custodial service draft.
For necessities, because the e-commerce platform must give customers time to arrange,
the delivery time will be less than five days. If there are multiple necessities in the same
order, a flat delivery fee must be charged. The Bank of Bangladesh reported that after an
inspection of e-commerce company Evaly, it was found that the platform could only repay
16% of its huge debts owed to customers and merchants. On June 22nd, Business Standards
quoted and published a report from the central bank's report. There are increasing
allegations of some e-commerce companies, including Evaly, for failing to deliver products
and reimbursing affected customers who made upfront payments. After these violations
were exposed, the government took swift action to control the industry.
NO ALTERNATIVE TO CASH WITHOUT BB APROVAL
The draft instruction received by this newspaper stated: "Any type of digital wallet,
gift card, cash coupon or other medium that can be used as a cash substitute may not
be introduced, used, purchased or purchased without authorization. Bangladesh Bank
is authorized to sell. "E-commerce companies must display goods in their own
warehouses or registered dealers. Each quotation must indicate available inventory
and be updated regularly.
According to the draft, the company will notify the customer if the advance payment
is delayed due to unforeseen and uncontrollable circumstances. However, you must
not directly or indirectly force customers to purchase other products in exchange for
late products.
If the product comes with discounts, free shipping, or other conveniences, the
product description must clearly state this. The central bank stated that cashback
offers or discounts must take effect immediately after the sale, because e-commerce
companies cannot put cashbacks in their wallets. In addition, once Bangladesh Bank
launches the custodial service, the payment gateway will process refunds in the event
of a delivery error or cancellation of the order by the customer.
6. Recommendations for the improvement of E-business in
Bangladesh
The ecommerce sector brings enormous opportunities for the business sector, as it
makes the 24-hour business, 7 days a week. It makes the economic activities more
dynamic. Electronic commerce can play an important role in achieving expected
economic growth and socio-economic development. E-commerce was successful in
increased GDP. To obtain sustainable economic development, as well as the growth
of the business, the Bangladesh government must thrive e-commerce. As for
ecommerce Bangladesh it is necessary to keep some effective passages.
The following are some of the recommendations that will guarantee correctly, as
well as the widespread use of e-commerce in Bangladesh.
Bangladesh e-commerce sites must provide higher levels of security for their
payment procedures.
High-level business courses in different disciplines as. Accounting, marketing,
finance, management; The economy must be modified through the integration of ecommerce problems.
The government must provide the necessary support to the E-CAB , so more people
can be trained in this sector.
E-commerce companies require high-speed Internet, which is absent in rural areas.
The government must undertake the Internet as a fundamental element of activity, in
particular the e-commerce business. You need to make sure that Internet low cost,
Bangladesh e-commerce sites must focus more on timely deliveries.
Bangladesh electronic commerce sites should not only update and evolve, but deal
with increasing concerns such as visiting management and increased purchases
during holidays, payment methods.
The effective IT security system must be adopted by adopting the latest IT
technology.
Bangladesh electronic commerce sites should try to improve customer service and
direct areas of interest to reach part of the population that does not yet opt for ecommerce.
fashion and electronic products are currently dominating to e-marketplace; Emarketplace products must be diversified.
To penetrate the global market, the government must reform its regulations
compared to online transactions and update the entire system.
Bangladesh Bank must formulate policies to facilitate the loan process for ecommerce entrepreneurs.
The government should do something about the supply of commercial license for ecommerce companies. Currently, the commercial license is not issued specifically for
e-commerce companies, which makes it difficult to carry out these companies.
It is important that the Bangladesh updates the ICT law related to e-commerce. It
should be concentrated on international practices.
7. Conclusion:
From our research, we conclude that e-commerce can make Bangladesh thrive in the
world's business arena. All major countries in the world are trying to embrace this
technology with open arms. We cannot just wait and see this huge phenomenon. We must
take an active part in adapting this technology. If we fail, the ray of modernity will never
reach our country. So, in order to improve the nation, we must take decisive action as soon
as possible. Our hope for the future lies in the hands of e-commerce.
8. Reference :
a)Computer Jagat February, October 2004
b)Computer Tomorrow Magazine March, July 2003,
c)Mir Mohammad Azad and, Md Mahedi Hasan. 2011, E-commerce aspect of
Developing Countries like Bangladesh.
d)Md. Raihan Jamil and Muhammad Showkat Imran. 2012, Present Status and
Critical Success Factors of E-Commerce in Bangladesh.
e) Daniel J. Pare Research Fellow Media@LSE. 2001, B2B E-commerce and
Developing Countries
f) “Bangladesh e-Commerce Week 2013” from 05 -11 January, 2013. Bangladesh Bank
and Bangladesh Association of Software and Information Services (BA-SIS) are jointly
going to organize a special awareness and promotional campaign through organizing.
g) PERSPECTIVE PLAN OF BANGLADESH 2010-2021, General Economics Division,
Planning Commission, Bangladesh
h)www.ict.govt.bd
i)Online shopping, selling or buying: http://bikroy.com/
j)https://brainstation-23.com/e-commerce-business-scenario-in-bangladesh-2006to-2018/
k)Sunera Saba Khan, Research Economist, SANEM.
l)The daily star,2021
m)www.btrc.gov.bd
n)www.bangladeshpost.gov.bd
o) Website for selling and buying in Bangladesh. http://www.cellbazaar.com/
p) Bangladeshi Online Shopping Portal http://www.rokomari.com/
q) Bangladesh online business platform https://evaly.com.bd/