Publish : 04 Jan 2022, 08:44 PMUpdate : 04 Jan 2022, 08:44 PM
Plagued by Ponzi schemes, fraudulent business models, and little faith in the sector — e-commerce did not have it easy in 2021, but saw growth, thanks to the otherwise business-killing Covid-19.
For 2022, businesses look to put that chapter behind and look forward to industry wide standardization, more investment, and a more informed customer base.
Hafizur Rahman, chief of the Central Digital Commerce Cell at the Ministry of Commerce, said the unique business identification number (UBIN) program is almost ready for launch.
The ICT Ministry, through a2i, has already started to develop a software for UBIN registration, he added.
“We are almost done with our part, and are currently waiting for the completion of a2i’s side of things. Hopefully, we will be able to start the registration process by this month, Rahman further said, adding that this will bring standardization to the industry and give consumers the power to differentiate between businesses that indulge in bad practices from those that are good.
“Registration will be given after careful inspection of promotional campaigns, customer reviews on products and deliveries, and feedback posted by consumers online. Any online platform without UBIN will not be allowed to operate,” he said.
According to the Commerce Ministry official, the Directorate of National Consumers' Rights Protection will suspend operations of any platform if there are multiple allegations of customer harassment against them.
Industry insiders, on the other hand, are eager for more investment for further expansion in 2022.
Previously, Chaldal Founder Waseem Alim had told Dhaka Tribune that Bangladesh is already far behind comparable countries when it comes to e-commerce.
“If anything, we need to encourage more honest entrepreneurs to enter this sector by making it more attractive. So far, India has attracted $100 per capita investment in e-commerce. Bangladesh has attracted only $1.5 per capita. The government needs to close this gap quickly so that we can unlock our economy's potential,” he added.
Following that statement, in September last year, Chaldal raised $10 million in another round of funding.
2022 is also going to see several new players enter the market, diversifying into pharmaceuticals, grocery, electronics, and other segments, according to the e-Commerce Association of Bangladesh (e-CAB).
Big brands like Walton and Minister are in the process of launching their own e-commerce platforms.
Meanwhile, startups like Green Grocery, a direct-to-consumer (D2C) platform, have secured funding from local sources
“Almost every brand has to come to e-commerce going forward; smart investments need to be made in the sector,” says e-CAB Vice President Mohammad Sahab Uddin.
But instead of corporations and manufacturers venturing into e-commerce by making hefty investments into a marketplace or segment that they have little experience in, it would be smarter for them to invest the funds in platforms and individuals that are experienced in the sector, he suggests.
“Corporate brands opening their own platforms and competing later offering products through their own portals and not their competitors will only give rise to small-scale e-commerce platforms, and we might never see an Alibaba or Amazon incubated here,” warns the e-CAB official.
In his opinion, corporations can invest small amounts in platforms and start-ups that are experienced in providing such ITES and gain years of knowledge and market expertise easily, risking even less and making the investment more sound.
According to e-CAB, official reports, and industry insiders, online sales rose about 70% in 2020 from the previous year, and the market size of the industry stood at nearly $2 billion as of August that year.
Uddin estimates that the valuation of the sector in 2021 might have crossed Tk20,000 crore — about $2.32 billion.
By 2023, the market is predicted to reach a size of $3 billion.
After scam-ridden 2021, what's in store for e-commerce this year?
Plagued by Ponzi schemes, fraudulent business models, and little faith in the sector — e-commerce did not have it easy in 2021, but saw growth, thanks to the otherwise business-killing Covid-19.
For 2022, businesses look to put that chapter behind and look forward to industry wide standardization, more investment, and a more informed customer base.
Hafizur Rahman, chief of the Central Digital Commerce Cell at the Ministry of Commerce, said the unique business identification number (UBIN) program is almost ready for launch.
The ICT Ministry, through a2i, has already started to develop a software for UBIN registration, he added.
“We are almost done with our part, and are currently waiting for the completion of a2i’s side of things. Hopefully, we will be able to start the registration process by this month, Rahman further said, adding that this will bring standardization to the industry and give consumers the power to differentiate between businesses that indulge in bad practices from those that are good.
“Registration will be given after careful inspection of promotional campaigns, customer reviews on products and deliveries, and feedback posted by consumers online. Any online platform without UBIN will not be allowed to operate,” he said.
According to the Commerce Ministry official, the Directorate of National Consumers' Rights Protection will suspend operations of any platform if there are multiple allegations of customer harassment against them.
Industry insiders, on the other hand, are eager for more investment for further expansion in 2022.
Previously, Chaldal Founder Waseem Alim had told Dhaka Tribune that Bangladesh is already far behind comparable countries when it comes to e-commerce.
“If anything, we need to encourage more honest entrepreneurs to enter this sector by making it more attractive. So far, India has attracted $100 per capita investment in e-commerce. Bangladesh has attracted only $1.5 per capita. The government needs to close this gap quickly so that we can unlock our economy's potential,” he added.
Following that statement, in September last year, Chaldal raised $10 million in another round of funding.
2022 is also going to see several new players enter the market, diversifying into pharmaceuticals, grocery, electronics, and other segments, according to the e-Commerce Association of Bangladesh (e-CAB).
Big brands like Walton and Minister are in the process of launching their own e-commerce platforms.
Meanwhile, startups like Green Grocery, a direct-to-consumer (D2C) platform, have secured funding from local sources
“Almost every brand has to come to e-commerce going forward; smart investments need to be made in the sector,” says e-CAB Vice President Mohammad Sahab Uddin.
But instead of corporations and manufacturers venturing into e-commerce by making hefty investments into a marketplace or segment that they have little experience in, it would be smarter for them to invest the funds in platforms and individuals that are experienced in the sector, he suggests.
“Corporate brands opening their own platforms and competing later offering products through their own portals and not their competitors will only give rise to small-scale e-commerce platforms, and we might never see an Alibaba or Amazon incubated here,” warns the e-CAB official.
In his opinion, corporations can invest small amounts in platforms and start-ups that are experienced in providing such ITES and gain years of knowledge and market expertise easily, risking even less and making the investment more sound.
According to e-CAB, official reports, and industry insiders, online sales rose about 70% in 2020 from the previous year, and the market size of the industry stood at nearly $2 billion as of August that year.
Uddin estimates that the valuation of the sector in 2021 might have crossed Tk20,000 crore — about $2.32 billion.
By 2023, the market is predicted to reach a size of $3 billion.
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