Just a few years ago, online shopping was taking baby steps as most people preferred shopping in physical stores.
However, what significantly accelerated this trend was a sharp increase in online purchasing during 2020, driven by Covid-19-related lockdown measures.
Nowadays, people even purchase groceries from the comfort of their own homes. So, how did this massive transition look like, that too in a span of less than five years?
Evolution of online shopping in Bangladesh
The early adoption phase of online shopping modestly started off in the early 2000s with a few pioneering e-commerce platforms.
However, the challenges faced by the users were a lack of payment options and poor internet transactions.
During the 2010s, e-commerce platforms diversified their product offerings, spanning electronics, clothing, and household goods. Increased mobile internet access expanded consumer reach and increased information about products.
Around that time came some local popular E-commerce platforms like Daraz (2012), Bangladesh's leading online grocery store- Chaldal (2013), and Bangladesh's largest online bookstore: Rokomari (2012).
The Covid-19 pandemic kickstarted the actual boom of online shopping in Bangladesh as lockdowns pushed consumers toward digital shopping for essentials.
E-commerce platforms met increased demand with investments in infrastructure, technology, and digital payments, bolstered by supportive government initiatives and regulatory reforms.
According to a report by Sciendirect stating the country experienced a significant increase in online purchasing during 2020 due to Covid-19 lockdown measures, with a 70% rise compared to the previous year.
Popularity factors
So what makes online shopping so dear to Bangladeshis? The users benefit from the convenience and often lower costs of online shopping compared to traditional stores.
Additionally, online shopping provides a broader selection of products and services than many traditional retail outlets.
What truly makes online shopping convenient is how easy the payment methods are.
Multiple payment options including cash on delivery, mobile banking, and online payment gateways.
Besides, online shopping enables consumers to discover the optimal deal by filtering based on their price and size preferences.
Current landscape of online shopping
According to a report by eCommeredb, Bangladesh ranks as the 31st largest eCommerce market, forecasted to reach US$10,959.5 million in revenue by 2024.
The market is projected to grow at a compound annual growth rate (CAGR 2024-2028) of 23.2%, reaching $25,240.9 million by 2028.
In 2024, the Bangladeshi eCommerce sector is expected to grow by 38.7%, contributing significantly to the global growth rate of 10.4% that year.
Global eCommerce sales are also anticipated to rise in the coming years, mirroring trends observed in Bangladesh.
The country boasts a workforce of over 43 million people, steadily expanding annually. Its high levels of education and skill make it well-suited for roles within the e-commerce sector.
There are future prospects for industries like cosmetics, fashion, medicine and even groceries in E-commerce with augmented adoption of AI and machine assistance.
E-commerce has significantly altered the social and economic landscape of Bangladesh, leading to higher employment rates and connecting the country more closely with the global community.
