SUBMITTED TO:

Dr. Mohammad Mizanur Rahman.

Associate professor, (SUST).

SUBMITTED BY:
CHALLENGES OF Md. Yasseen Shanewaj Tanvir
10316037

E-COMMERCE IN BBA-3

BANGLADESH
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Table of content

Serial No Title Page No

1 Executive Summary 2

2 E-commerce 3

3 History of e-commerce 3

4 Types of ecommerce 3-5

5 Advantages and 5-9

Disadvantages of Ecommerce
for Businesses

6 E-commerce in Bangladesh 9-10

7 Challenges of E-Commerce in 10-12

Bangladesh

8 Recommendations 12-13

9 Conclusion 13

10 Reference 14
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Executive Summary

Information Technology has been taking part in an important role in the future development of
financial sectors associate degreed the method of doing business in a rising economy like
Bangladesh. Increased use of smart mobile services and internet as a new distribution channel for
business transactions and international commercialism needs more attention towards e-commerce
security for reducing the deceitful activities. The advancement of information and communication
technology has brought plenty of changes in all spheres of existence of human being. E-commerce
has a lot of edges that add worth to customer’s satisfaction in terms of customer convenience in
any place and permits the company to gain additional competitive advantage over the opposite
competitors. This paper incorporates a brief history of e-commerce, types of e-commerce business
in Bangladesh, alongside, the challenges and few recommendations.
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E-commerce

E-commerce refers to the buy and sale of products as well as services by means of electronic
channels for example, the web. In other words, e-commerce is electronic commerce which is
transaction on electronic media. Here buying and selling are done through electronic media.

History of E-commerce

E-commerce was first presented during the 1960s through an electronic data interchange (EDI)
on value-added networks (VANs). The medium developed with the expanded accessibility of
web get to and the approach of well-known online venders during the 1990s and mid-2000s.
Amazon started working as a book-shipping business in Jeff Bezos' garage in 1995. EBay, which
empowers purchasers to pitch to one another on the web, presented online sell-offs in 1995 and
detonated with the 1997 Beanie Babies furor.

Like any digital technology or consumer-based purchasing market, online business has advanced
throughout the years. As mobile phones turned out to more popular, online business has turned
into its very own market. With the ascent of such destinations as Facebook and Pinterest, social
media has turned into an essential driver of online business. Starting at 2014, Facebook drove 85
percent of social media beginning deals on e-commerce platform stage Shopify, per Paymill.

The changing business sector speaks to a huge open door for organizations to improve their
importance and grow their market in the online world. Researchers predict e-commerce will be
17 percent of U.S. retail deals by 2022, as indicated by Digital Commerce 360. The U.S. will
spend about $460 billion online in 2017. These figures will keep on moving as mobile and web
use grow both in the U.S. furthermore, in creating markets far and wide.

Types of E-commerce

Electronic commerce includes every single online commercial center that interface buyers and
sellers. The internet is utilized to process every single electronic exchange. There are some types
of e-commerce which are given below (DeMatas, 2019)

B2B Ecommerce

A B2B demonstrate centers around giving items starting with one business then onto the next.
While numerous online business organizations in this specialty are specialist co-ops, we'll
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discover programming organizations, office furniture and supply organizations, record

facilitating organizations, and various other internet business plans of action under this heading.

B2B ecommerce examples the Chevron Corporation, Boeing, and Archer Daniel Midlands.
These organizations have custom, endeavor online business stages that work legitimately with
different organizations in a closed environment.

B2C Ecommerce

The B2C segment is the thing that a great many people consider when they envision an
ecommerce business. This is the most profound online business market, and a considerable lot of
the names we'll see here are known amounts disconnected, as well. B2C deals are the customary
retail show, where a business pitches to people, however business is directed online rather than
in a physical store.

Examples of B2C organizations are all over the place. Only online retailers incorporate
Newegg.com, Overstock.com, Wish, and ModCloth, however other major B2C physical
organizations like Staples, Wal-Mart, Target, REI, and Gap.

C2C Ecommerce

B2B and B2C are genuinely natural ideas for a large portion of us, however the possibility of
C2C is extraordinary.

Made by the ascent of the ecommerce segment and developing shopper trust in online deals,
these destinations enable clients to exchange, purchase, and sell things in return for a little
commission paid to the webpage. Opening a C2C site takes cautious arranging.

E-bay, bikroy.com are the best examples of C2C Business.

C2B Ecommerce

C2B is another model many people don't promptly consider, however that is developing in
prevalence. This kind of online trade business is the point at which the purchaser sells goods or
services to businesses, and is generally identical to a sole ownership serving a bigger business.

Reverse auctions, service provision sites like UpWork, and a few normal blog adaptation
procedures like member showcasing or Google AdSense additionally fall under this heading.
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B2G (also called B2A)

For organizations whose sole customers are governments or sort of open organization.

One example is Synergetics Inc. in Ft. Collins, Colorado, which gives contractual workers and
administrations to government organizations.

C2G (also called C2A)

Commonly people paying the administration for expenses or educational cost to colleges.

Two parts that are shut for entrepreneur owners however are developing incorporate G2B for
government deals to private organizations, and G2C, for government deals to the overall
population.

Advantages and Disadvantages of Ecommerce for Businesses

E-commerce have both advantages as well as disadvantages. ("Advantages and Disadvantages

of Ecommerce for Businesses in 2018", 2019) Some of them are given below:

Advantages

Ecommerce offered numerous advantages to organizations and clients yet it additionally caused
numerous problems. Advantages of Ecommerce include

1. Accelerate the purchasing procedure and spare time for clients

It actually accelerates the purchasing procedure since when somebody considers getting one
explicit item from the physical store which is far and not effectively accessible. Here how the e-
commerce encourages the client to profit the particular item effectively and expediently.

For example – Sometimes customer is not ready to locate a specific item from the store and even
by visiting other chained stores, this is the place eCommerce come into a scene with a quick
response over the necessity by obtaining the specific item without sitting around idly.
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2. Customize the store according to the customer desire.

One of the online business advantages which will improve our web-based shopping knowledge.
It is on the grounds that each buy which is influenced online will to be alluded according to area
and prescribed according to clients propelled looks.

It is one sort of customize store where each client has an alternate first page in view of their area
and past buys. Indeed, even clients are qualified at some point to get additional administrations
as a result of past history and devotion towards the administrations. Such sort of store encourages
the client to satisfy their desires.

3. Simpler to energize a spur of the moment purchase

Drive purchasing is one of the strategies where it fills in as a typical conduct of client's
discernment towards a specific item. It is identified with the control of human mental conduct
which resembles a few people have identity qualities that can be said as motivation purchasing
propensities.

This is the thing that can be utilized on an eCommerce stage also by making the item
increasingly alluring with pictures, other shading choices and even by demonstrating a video of
the item. So, the client can get a similar air of purchasing the item from the store.

4. Surveys Available

It has such a large number of positive suggestions which can give more qualities to your
ecommerce site and help clients to fabricate more trust over a specific item. It can assist you with
being clear and progressively noticeable about the item that causes you with more item
determination as well.

The majority of the surveys are significant to clients, which can truly assist a great deal with
building trust over the items and administrations.

5. Best Quality of administrations in sensibly low activity cost

It is one of the advantages which assumes a fundamental job over an eCommerce stage. In a
large portion of the case, physical retail locations need to pay a ton to keep up their essence in
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the market by paying rent or regardless of whether its own. There are a few forthright costs
which influence the store which is physically claimed.

Internet business store will enable you to cut off over 60% of the value which has been gone
through a physical store. When you talk about activity cost it is high when contrasted with the
online store. One needs to pay their staff, area charges, stock, store plan and so on, which
influences a great deal.

6. Give adaptability to the customer to purchase item every minute of every day.

It has greater adaptability over the ordinary store on the grounds that the administrations are
accessible every minute of every day and however serves you the administrations whenever and
wherever.

There is a great deal of progress in the online markets as of late which are furnishing you
benefits helping you with the proposal, deals support, visit support and even causes you find
comparable items. Online business is one of the stages which accessible for shoppers every
minute of every day and internationally.

7. No Geographical limitation, tap the worldwide market structure the very first moment.

It resembles the customer will approach the online store from anyplace on the planet, which can
all-inclusive be gotten to. This is the thing that each client is anticipating having as their
administration in light of the fact that occasionally clients are not ready to locate a specific item
which not accessible at the store area but rather however online store works like an enchantment
to furnish them with various alternatives. Along these lines, that they can profit the
administrations effectively.

8. Environment – Friendly

we can say the ecommerce is absolutely Eco-friendly when contrasted with the store. It is on the
grounds that when we visit a store during an era of procurement, we get a bill, receipts, coupons
and so on.

These damages our condition a great deal and that is the motivation behind why eCommerce
purchased such administrations which are much eco-accommodating and simple to keep up.
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Disadvantages

As we know everything has pros and cons. Like that e-commerce has disadvantages as well such
as

1. Absence of individual touch

It is somewhat purchaser feeling that buyer can't feel and contact the item. Here and there
regardless of how great an item is clarified and communicated you won't most likely sense the
touch, smell, taste, and sound, through the dimensionality of a screen. This is the thing that
makes eCommerce at some point in a circumstance where client faces bit trust issues over items.

2. Uncertain about the quality

One of the most concerning issues with purchasing things online is that you will have no
assurance of an items' quality. Reviews are not constantly accommodating and however every
one of the inquiries about will never guarantee you about the nature of an item.

It might misdirect customers to expand deals but however for they should ensure and get mindful
that occasionally flawed items are being sold online as well.

3. Late Delivery

When somebody intends to arrange an item online, they are never guaranteed to get conveyed
according to time and there are a lot of issues which make such circumstance exceptionally
sensitive for clients.

It resembles we are hanging tight for a whole day leaving our work to simply get our new
telephone for instance and however we are not getting conveyed on that day itself.

Such a circumstance makes buyer hang tight a great deal for the conveyance however at end
benefits nearly loses the trust of customers on that minute itself.

4. Security issues

E-commerce sites record all the critical insights regarding the customers which are to be kept
verified in light of the fact that it incorporates details like name, telephone no, address, and bank
subtleties. On the off chance that for these situation locales don't execute thorough cybersecurity
amount.
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Each online store has an issue with security whether they are little, medium or undertaking
organizations. To put it plainly, you can say that online store has security issues which can never
be anticipated in this universe of ecommerce.

5. Site Crash issues

This is one of the issues where we need to figure the administration to get online again in light of
the fact that when we talk about eCommerce store, they face issue with servers once in a while
which causes bunches of issue on deals.

It is on the grounds that when the webpage goes down the whole administrations won't be
accessible and we should trust that hours will get the store is online once more.

6. A few items are hard to buy online

Truly, it is genuine a few items are extremely hard to buy online like, gold, exhibitions and other
which you required very customized one.

E-commerce in Bangladesh

In Bangladesh, there is a lot of enthusiasm for e-commerce; however, because of different

financial, infrastructural and lawful reasons it didn't spread generally previously. After the
introduction of 3G technology, the e-commerce has been developing quickly in light of the fact
that individuals have more simple access to web than previously. As per BASIS (Bangladesh
Association of Software and Information Services), in only three years, in excess of 2000 online
trading stages have advanced toward Bangladesh. Agents and exchanging houses express that the
quick development in web systems administration and cell phone inclusion instigates them to
meet clients on the web and convey a smooth and transparent shopping background including e-
ticket deals and deals on Facebook the market has yearly exchanges around Tk 10 billion
(roughly DKK 700 million). Moreover, it increases at a gigantic pace with a month to month
development of 20-25 percent as per information from BASIS. Around 15 million people utilize
the internet routinely of them,4-5 million have accounts on Facebook which is as yet holding the
main position for internet shopping through littler and increasingly nearby organizations in spite
of the fact that the market is evolving quickly. Bigger organizations, local and universal, are
having accomplishment in changing some way or another feverish shopping society into a
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transparent and simple method for getting to a greats e-area of consumer products. This pattern is
known to Swedish online business organization Bikroy.com who is doing well in Bangladesh.
Since their starting in 2012 Bikroy.com has encountered a huge development and is today the
biggest online commercial center in Bangladesh. Presently they have in excess of 2 million
special guests on their site. (CVA, 2017)

E-commerce platforms in Bangladesh:

Some of the main e-commerce websites operating in Bangladesh are listed below:

 www.muktobazaar.com
 www.ekhanei.com
 www.daraz.com
 www.shohoz.com
 www.chaldal.com
 www.chorka.com
 www.bagdoom.com
 www.kaymu.com
 www.banglamart.com

Challenges and recommendations of E-Commerce in Bangladesh

 Challenges

Bangladesh is a late participant in e-commerce. In spite of the fact that this is another area in
Bangladesh however it watched enormous development within a short time. Bangladesh has an
extraordinary open door for e-commerce, yet it isn't at all attractive condition. E-commerce has
to face challenges in perspective of Bangladesh as follows:

 Lack of education: most of the people of Bangladesh are illiterate. They don’t
know the proper use of technology. So, they can’t use the modern technology.
Due to lack of education about modern technology. It could be a challenging
factor for e-commerce.
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 Cultural tradition: the cultural tradition of Bangladesh is to buy and sell

products practically not via internet. People would like to buy and sell products
virtually rather than online. So, it can be a challenge for e-commerce.
 Internet coverage arena is limited: in Bangladesh the internet can’t coverage
all area properly such as rural area. The network accessibility for rural area is
poor. So, the people of that area can’t go for e-commerce properly which is
challenging matter for them.
 Lack of trustworthiness on IT Infrastructure: people don’t have trust on IT
Infrastructure. Due to lack of advanced technology it can’t grow people trust. So,
it could be a challenge for e-commerce to grow up trust of people on IT Sector.
 Lack of trustable business and enterprise: The Business and enterprise sector
have less interested to move on e-commerce. They don’t want to move on with e-
commerce. They don’t trust electronic as media to buy and sell products due to
lack of trust.
 Poor ICT education and training: the people of Bangladesh has poor education
and training on ICT. Due to that reason it can’t grow up its accessibility.
 Lack of first mover: there is lack of first mover who wants to do business with
e-commerce. Due to low confidence and lack of trust it can be happen.
 Poor concept of online marketing: the online marketing concept of Bangladesh
is poor. Due to the poor-quality people don’t want to get involve with the concept.
Which is challenging for e-commerce.
 Cyber-attack & hacking: the reason most of the people don’t use e-commerce
because they afraid of hacking system. They think what if their bank information
would be hacked by third party. So, they prefer using virtual fact rather than e-
commerce.
 Unconsciousness about online based services: people of Bangladesh are
unconscious about the online based services. They can’t figure out that they can
easily make any deal with the internet. It could save their time as well as money.
Because of their little idea about internet they can’t take advantages of internet.
 Consumer dissatisfaction due to inability to delivering correct product on
time: sometimes people order something on internet and can’t get it on time or
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can’t get the right product. So, it makes a customer dissatisfied. Due to these
reason customers don’t want to purchase via internet.
 Tariff and non-tariff barriers: in certain products there are tariff and non-tariff
barriers which don’t allow to buy and sell products easily via e-commerce. It adds
extra cost which customers don’t want to pay. So, it can be call barrier for sellers.
 Government’s exchange rate policy: the exchange rate is fluctuating day by
day. So, government making some policy regarding the exchange rate. It can be
barrier for buying a foreign product.
 Political problem: political problems like strike can be a barrier for e-commerce.
Due to strike a product become delay to reach on the destination. Some other facts
like different kinds of policy can be challenging factor for e-commerce.

Recommendations

E-commerce part conveys tremendous chances to the business segment as it makes 24/7 business
possible. It makes the economic activities increasingly unique. E-commerce can assume vital job
in accomplishing anticipated economic development and financial improvement. E-commerce
has been effective in expanding GDP. So as to acquire supportable financial improvement just as
business development Bangladesh government should thrive e-commerce. As to e-commerce
Bangladesh needs to keep up some effective steps.

The followings are some of the recommendations that will guarantee the smooth working just as
the widespread use of e-commerce in Bangladesh

 E-commerce organizations require rapid web, which is missing in the rural areas. The
government should accept the internet as a principal component of business, especially e-
commerce. It must ensure low-cost, rapid web for country people to turn its vision of
Digital Bangladesh into the reality.
 The government should provide the vital help to e-CAB (E-commerce Association of
Bangladesh) so more people can be prepared in this sector.
 Bangladeshi e-commerce sites should provide more prominent layers of security to their
payment procedures.
 Bangladeshi e-commerce sites should concentrate more on timely deliveries.
 They should use the latest technology for their securities
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 Bangladeshi e-commerce should try to improve their customer service and try to reach
those population that are not involve in e-commerce.
 Government should make the loan process easy for the e-commerce entrepreneurs.
 Government should do something about trade license of e-commerce. Without trade
license e-commerce is difficult to run.
 Government should upgrade the law relating ICT. That will be easy to do e-commerce.

Conclusion

The e-commerce industry will be a pioneer with prominence in electronic business world in the
upcoming years. The e-commerce transformation has in a general sense changed the matter of
exchange by giving new chances and borders easily. In Bangladesh, it has strongly affected the
traditional business system and changing the life of people by making it simpler. While it offers
advantages to customer and seller, e-commerce offers difficulties to traditional business for
competitive position. Developing countries face numerous obstacles that influence the effective
usage of e-commerce with the assistance of contrasting and developed country. At the point
when the web cost will be low then the internet business will prosper effectively and will make
huge numbers of traditional business to come up short on their business. Comfort is one of the
advantages that customer gets from the e-commerce and along these lines expanding consumer
loyalty. This is because of customer can put in a buy a request from any place with internet
connection. e-commerce supplier should give significance on each customer by giving smooth
service and numerous alternatives for payment and have more capacities accessible on the web.
Different advantages are extended item contributions and extended geographic reach. In any case
e-commerce faces a lot of challenges in prospering their business.
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Reference

 E-Commerce?, W. (2019). What is E-Commerce?. Retrieved from

https://www.businessnewsdaily.com/4872-what-is-e-commerce.html
 DeMatas, D. (2019). 5 Types of Ecommerce Business Models That Work Right Now.
Retrieved from https://www.ecommerceceo.com/types-of-ecommerce-business-models/
 Advantages and Disadvantages of Ecommerce for Businesses in 2018. (2019). Retrieved
from https://magnetoitsolutions.com/blog/advantages-and-disadvantages-of-ecommerce
 CVA, K. (2017). https://www.medwinpublishers.com/JOBD/JOBD16000139.pdf.
Journal Of Orthopedics & Bone Disorders, 1(7). doi: 10.23880/jobd-16000139
 (2019). Retrieved from https://globaljournals.org/GJMBR_Volume16/3-Electronic-
Commerce-A-Study.pdf