Online shopping is now a popular means of trading goods and services in Bangladesh. An online platform is used by many companies to showcase an array of products ranging from kitchen items, home appliances to clothes, shoes, cosmetics to cars and flats even! All this has been possible due to the expansion of information and communication technology (ICT). City dwellers prefer online shopping as it saves time by saving them from the hassle of sitting in traffic jam for hours, and it also saves money at times.
The growth of online business is evident both in formal and informal ways that includes businesses across social networking channels such as Facebook pages. Industry insiders estimate that country has around 200 e-commerce websites and at least 3,000 F-commerce (Facebook commerce) sites and that an annual e-commerce sale is approximately close to two billion taka.
What facilitates this striking growth of online business is the easy access to internet and its increasing number of users. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of active internet subscribers reached 45.67 million until April 2015 while 44.22 million are mobile internet users.
In addition, extensive advertisement campaigns by online classified websites such as Bikroy.com and Ekhanei.com have created mass awareness among ordinary people, informing them about the potential of online buying and selling. Although shoppers are often discouraged by fraudulent activities, the industry insiders claim that such acts are undertaken by the third-party engaged in delivering the products.
The concept of online markets engages the third party retailers who serve between the sellers and the customers and thus create new jobs. Currently, 10,000 to 15,000 people are involved with the sector, with industry experts claiming that this can create employment for more than 0.2 million people, within the next five years.
Despite this tremendous growth potential, e-CAB and BASIS e-commerce alliance leaders argue that the proposed 4% VAT will land the local entrepreneurs in great trouble. Also, they termed the large scale investment by multinational companies in the growing online market as another challenge, as it might discourage the local entrepreneurs as well. Such impediments might adversely affect this flourishing sector.
Industry insiders also expect the government to recognise e-commerce as an entirely separate and autonomous industry, providing it adequate policy support and creating a local entrepreneur-friendly investment environment. For rural people to get services at their doorsteps as well, they are hoping the government will take initiatives to create a liaison between post offices and e-commerce companies.
Re-printed with the permission futurestartup.com
