North South University

MIS 207

Topic : E-business in Bangladesh- Current

situation and future opportunities of E-business

Instructor: Md. Moktar Ali

Section: 14

Submitted by:

Istiak Rahman Bhuiyan 1911245630

 E-business in Bangladesh

Introduction
Any form of business or commercial transaction that includes the sharing of data over the
internet is referred to as e-business. E-business is short for "electronic business." E-commerce is
sponsored by two platforms: online storefronts and online marketplaces. Purchasing and selling
products and services, providing customer support, processing payments, managing production
control, collaborating with business partners, sharing information, running automated employee
services, and recruiting are just a few of the e-business processes available.
E-business may include a wide range of services and functions. They range from the creation of
intranets and extranets to application service providers' provision of e-services over the internet.
E-business make our life easy. We don't need to go out from home to buy our necessary product.
We can order from online and get home delivery service.

Types of E-business

In today's world of information and technology, the Internet is a great discovery of science.
People have built online businesses based on the Internet. It known as E-business.
There are different types of E-business and that's are:
1. B2C – (Business to consumer.)
2. B2B – (Business to business.)
3. C2B – (Consumer to business.)
4. C2C – (Consumer to consumer.)
5.
** B2C – (Business to consumer.):
B2C means those kinds of businesses that sell s to the customer. Since the B2C model is the
most popular business model, it encompasses a wide range of approaches.
Any purchase you make as a customer in an online store — consider clothing, household goods,
and entertainment — is a B2C transaction.
A B2C purchase has a much shorter decision-making process than a B2B purchase, particularly
for lower-value products.

Consider this: deciding on a new pair of tennis shoes is a lot easier than vetting and purchasing a
new email service provider or food caterer for your company.
Because of the shorter sales period, B2C companies spend less money on promotions to make a
profit, but they often have a lower average order value and fewer repeat orders than B2B
companies.
And B2C doesn't only refer to products; it also refers to services.
B2C innovators have taken advantage of technologies such as mobile applications, native ads,
and remarketing to sell directly to their consumers while also making their lives simpler.

** B2B – (Business to business.):

In a B2B business model, one company sells its product or service to another. The buyer is
frequently the end-user, but he or she usually resells to the consumer.
B2B transactions have a longer sales time, but higher-order values and more repeat orders.
Recent B2B innovators have carved out a niche for themselves by eschewing catalogs and order
sheets in favor of e-commerce storefronts and better niche market targeting.

**C2B – (Consumer to business.):

Individuals can sell products and services to businesses through C2B businesses.
In this e-commerce model, a website can allow customers to post work they need done and have
businesses compete for the job. Affiliate marketing programs are also classified as C2B.
The competitive advantage of the C2B e-commerce model is in the price of products and
services.
This strategy gives customers the power to set their own prices or make companies fight directly
for their company.

C2C – (Consumer to the consumer.):

A consumer-to-consumer (C2C) business, also known as an online marketplace, connects
customers to trade products and services and makes money by charging transaction or listing
fees.
In the early days of the internet, companies like Craigslist and eBay pioneered this model.
C2C companies benefit from the self-propelled growth of motivated buyers and sellers, but
quality management and technology maintenance are significant challenges.

Current status of E-business in Bangladesh

Bangladesh Bank approved online payment in 2009, and the use of debit and credit cards for
online payment was approved in 2013. The Bangladesh ecommerce Association is the country's
trade association for ecommerce. Bangladesh's government launched ecommerce sites for each
district in the country in 2016. Different kinds of e-commerce site come to Bangladesh Such as
Bikory.com,Chaldal.com,Daraj,Rokomari.com, Azker deal, and many others. They start to sell
different kinds of necessary products from their site and people can order their necessary
products from e-commerce sites and get them in their hand timely. In that, they Don't need to go
out from their home to market. For this reason, they can save their time.
Bangladesh's e-commerce industry has recently exploded. The future for e-Commerce has been
splendidly rising for the last couple of years, thanks to improved connectivity, inclusion, and a
consistently growing web population. Technology is being used in nearly every area of life. In
this age of globalization, it's difficult to find any area of the world that doesn't use technology.
The internet, in particular electronic commerce (E-commerce), has opened up a new horizon for
industry, specifically electronic commerce (E-commerce). The use of the Internet in the market
is referred to as the e-commerce industry.
E-commerce is a form of company that makes use of the Internet for marketing, identification,
payment, and distribution of goods and services. With a population of 165 million people and
33% of them using cell phones, Bangladesh's e-commerce industry has a lot of promise in the
coming years. Nearby, e-commerce is generally aligned to the internet. As a result of the
widespread use of cutting-edge technology such as the internet, both buyers and sellers now
wield considerable influence. Currently, a substantial portion of the company operates on the
basis of e-commerce over digital networks. The internet links the general public with businesses.
Bangladesh's e-commerce sector exploded in 2017, growing by an unprecedented 70% over the
previous year. The B2C E-commerce business sector was worth USD 110-115 million (roughly
BDT 900 crore) in 2017, compared to the total retail market of 133,571 crores. The Indian mega
e-commerce business sector, on the other hand, remains valued at USD 17 billion. Experts
estimate that the Bangladesh E-commerce industry is at a stage similar to that of the Indian
market 5-7 years ago. According to data available with the e-Commerce Association of
Bangladesh, the size of the E-commerce sector market increased to Taka 17.0 billion in 2017
from Taka 4.0 billion in 2016. (e-CAB). The market indicator is expected to hit Taka 70 billion
by 2021. The Asia-Pacific e-commerce market is booming, with 71 percent of APAC buyers
making an online purchase. In this country, Bangladesh is a significant player. A total of $50
million was invested in this sector starting in 2016. Foreign Direct Investment accounted for $10
million of the total. However, the total will be much higher because Alibaba, the Chinese e-
commerce behemoth, recently acquired leading online marketplace Daraz Bangladesh is rising at
a rate of 72 percent per month in terms of retail e-commerce. This division currently
encompasses 35,000 people and 25,000 small and medium businesses (SMEs). There are 2,500
e-commerce business sites and 150,000 e-commerce websites. Every day, the retail volume of
deliveries is estimated to be between 15,000 and 20,000.
Bangladesh's e-commerce market is expected to hit USD 20 billion by 2020, according to market
researchers, while India's online shopping market is expected to reach USD 69 billion by 2020,
according to Goldman Sachs. Investors from around the world are increasingly stopping in
Bangladesh on their way to India. The business opportunities in Bangladesh prompted MoMagic
Technologies, a Delhi-based digital marketing firm, to launch Pickaboo, an e-commerce site with
monthly revenue of USD 600,000. Big investors like IFC and Alibaba have recently become
interested in the Bangladesh e-commerce climate, and a lot big investors like them are likely to
do so in the future. The e-commerce industry has altered many traditional transactional patterns,
resulting in a positive economic change. The internet is currently being used by Bangladeshis to
improve their way of life. Suppliers will now receive orders from customers via the internet,
which saves them time. The website is used by a wide variety of business operations, including
large companies and retailers, to collect customer orders and deliver specific products to them.
According to figures from the previous few years, this industry has experienced rapid growth.
Both the government and entrepreneurs must be more aware and take appropriate action in order
for it to be sustainable. Market intelligence is also assisting E-commerce firms in achieving a
better understanding of their customers' needs. If E-commerce companies can maintain
protection while still providing the best service to their customers, the industry can expand at a
breakneck pace.

Future opportunities for E-business in Bangladesh

The demand for E-business increasing day by day in Bangladesh. People in Bangladesh used to
globalization. In the Covid-19 pandemic situation people utilization how E-business support in
their lifestyle. In the Covid-19 situation, people couldn’t go out from their home. They unable to
take any necessary product from the shop. They order it from an online marketplace and taking
the order in a timely. This period is characterized by rapid technological advancements, which
have resulted in the emergence of e-commerce as a phenomenon in the business world. In the
fiscal years 2016-2017, this industry is estimated to have produced around taka 1000 crore in
revenue and employed around 50000 people. Bangladesh's ecommerce industry will expand at a
rate of 72 percent per year in the coming years, according to a statement.
The E-business has some future opportunity in Bangladesh and that's are:
1.Thriving Sectors in E-commerce:
Technology's blessing has created a buzzword, "E-commerce," which has recently encouraged
people to work for themselves in the e-commerce industry. Some e-commerce businesses have
been successful to launch, such as "online shopping," "online cosmetics," and "online
electronics. "According to a report, "electronics and groceries will experience a 25% increase in
online sales." Food is that the commonest business in Dhaka city, with a 25% rate of growth, and
during this field, “Foodpanda” and “Hungrynaki” became well-known for his or her service.
2.E-business has Impacted on Economic Growth in Bangladesh:
Bangladesh's economic growth rate in 2017 was 6.8%, according to a World Bank survey, with
e-commerce playing a significant role. Experts expect that the number will rise in the near future,
owing to the fact that Bangladesh will have 18.3 million internet subscribers by 2020. According
to Boston Consulting Group and Telenor, 32 percent of the total volume of a country's family
would have at least one internet connection, having a major effect on online purchases and e-
commerce, as well as economic contribution.
3.Making Trust through Legal Issues & Product Quality:
Humans are born with a fear of making decisions, particularly when the situation is unusual.
Throughout the entire purchasing process, they think a lot. So, when the process leads to them
purchasing a product online without seeing it first and with no return policy in place, they think
twice. According to Lightcastel Partners' study, "About 57 percent of online shoppers said the
service was "indifferent" or "bad." When it comes to Facebook-based shopping, shoppers often
have to deal with poor product quality. However, since it is such a common medium, authorities
create laws when required. As a result, businesses are paying more attention to the quality of
their products and services. As a result, it is reasonable to expect that laws and product quality
will improve in the future.
4.Blog Marketing & Evolvement of Marketing Strategies:
Along with traditional marketing tactics, a new layer in the marketing field has been added called
"Digital Marketing," where blogging can be the most effective strategy. Related content, or a
good reading and attractive content, will engage the consumer more effectively in this context.
So, after a few years, this may become a bit of a fad to give customers the impression that they
are engaging on a personal level with them. It will demonstrate that the organization is loyal to
its customers and is concerned about their needs.
5.Expansion of Existing E-commerce Companies:
E-commerce is a fashionable rising field these days, but the market or industry's stability and
expansion are just a matter of time. Existing businesses will grow larger than they are now in a
few years. As a result of the performance, more people will be inspired to start in the future. As a
result, in a certain period of time, there would be a reasonable number of businesses. This type of
company is now going through the embryonic stage, they are creating and expanding the target
market and being conversant in the market.
 Conclusion
According to market analysts, this expanding market will not only improve Bangladesh's
economic structure, but also change the country's e-commerce technology, infrastructure,
lifestyle, and service industry. Bangladesh is poised to become the next Asian e-commerce tiger,
thanks to its numerous opportunities and rapid growth.
Finally, regulators and policymakers in our country must play a significant role. Policy
assistance and enforcement can help a sector thrive in a fast-changing entrepreneurship
ecosystem with many challenges. Establishing an online consumer protection act, as well as the
infrastructure to enforce it, could be a major issue. Many platforms are currently attempting or
developing their own versions of consumer protection policies, but scams and frauds will
continue to thrive unless a regulatory policy level drive is undertaken to create a uniform set of
laws protecting online consumers.