Assignment of
E-Business
Topic: Drivers and barriers to sell-side E-commerce of Small Businesses in
Bangladesh
Prepared For:
Dr. Abul Khayer
Associate Professor
Department of International Business,
University of Dhaka
Prepared By:
Nazmul Hudha
KJ-030-067
IB-13th Batch (A)
2019-2020
nazmul-2019713160@ib.du.ac.bd
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Selling Product or services online, often referred to as sell-side E-commerce, ca n be a valuable
avenue for small businesses in Bangladesh to expand their customer base and increase sales.
Bangladesh has seen significant growth in e-commerce in recent years, but challenges persist.
There are both drivers and barriers that impact the sell-side e-commerce in Bangladesh.
The Drivers of Sell-side E-commerce are given below:
 Rapid Digitalization: The increasing Internet Penetration and smartphone usage in
Bangladesh have opened up new opportunities for small businesses to reach a wider
customer base.
 Reduce Operating Cost: Selling online often requires lower overhead costs compared
to running a physical store, making it an attractive option for small businesses with
limited resources.
 Access to Global Market: Online Platforms allow Bangladeshi small businesses to tap
into the international market and sell their products globally.
 Government Initiatives: The government of Bangladesh has taken initiatives to
promote e-commerce, including offering training and financial incentives to small
businesses to go digital. At present the banks provide loans to small businessmen with
lower interest rates and inspire them to do business online.
 Digital Literacy: As more people gain digital literacy skills, they are becoming more
comfortable with online shopping, creating a larger market for e-commerce businesses.
 Improved Payment Infrastructure: The development of digital payment systems and
mobile banking has made it easier for customers to make online purchases.
 E-Commerce Platform: The availability of user-friendly e-commerce platforms and
marketplaces like Daraz, Ajkerdeal, and Evaly makes it easier for small businesses to
set up online stores. Now digital media is also a good platform for selling products.
The barriers of the Sell-side E-commerce are given below:
Limited Internet Infrastructure: While internet access has improved, there are still
areas in Bangladesh with inadequate infrastructure, leading to slow or unreliable
internet connections.
Digital Illiteracy: Many small business owners and customers lack the digital literacy
skills required for e-commerce, which can be a significant barrier.
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Payment Challenges: Secure and convenient online payment methods are essential for
e-commerce. However, limited options for online payments and concerns about online
fraud can deter customers.
Logistics and Delivery Issues: Efficient and reliable logistics and delivery systems are
crucial for e-commerce success. In Bangladesh, logistics and delivery services may be
unreliable or expensive, which can hinder business operations.
Competition: The e-commerce market in Bangladesh is becoming increasingly
competitive, making it difficult for small businesses to stand out and gain market share.
Regulatory Challenges: Navigating the regulatory environment, including taxation
and compliance, can be complex and costly for small businesses.
Trust and Security Concerns: Customers may have concerns about the security of
their personal information and payment details when shopping online, which can affect
their willingness to buy from small businesses.
Limited Product Diversity: Small businesses may have limited product offerings
compared to larger competitors, which can limit their appeal to customers.
Access to Finance: Access to capital and financing options for small businesses
looking to expand their e-commerce operations can be limited, hindering growth.
To succeed in sell-side e-commerce, small businesses in Bangladesh need to address these
barriers while leveraging the drivers that support their online endeavors. This may involve
investments in digital literacy, improving logistics and payment systems, and adapting to
changing market conditions and regulations.
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