LITERATURE REVIEW

ON
GROWTH OF E-COMMERCE
IN BANGLADESH

Submitted for:
Md. Mahmudul Hasan Fouji
Assistant Professor
Jagannath University
Dhaka, Bangladesh

Submitted by:
Raisul Islam
ID: M1502047002
Sec: A (6th Batch)

Marketing Research

Jagannath University
Date of Submission: 4th November, 2015

The Internet has revolutionized and interconnected the whole world, which in turn has innovated
a new range of experience for trade and commerce, that is, electronic commerce (e-commerce)
and globally it is becoming a booming industry. Over the past decades, e-commerce has gained
rapid acceptance worldwide and still evolving. Alibaba Group founder Jack Ma Yun predicts
sooner or later e-commerce will become a traditional business all over the world.
The popularity of e-commerce is largely driven by the expanding reach of the Internet, hence
online marketplace in our neighboring countries are flourishing and has become a major business
platform in many countries and that's why, Bill Gates had once said If your business is not on
the internet, then you will be out of business. E-commerce started in Bangladesh in the late 90s
and it is growing, and thus some e-commerce businesses have risen to prominence but still the
majority of the sector is considered to be at a developing stage. Quazi Zulquarnain, Kaymu
Bangladesh's deputy managing director believes that, soon Bangladesh will find a strong position
in the world of e-commerce. Our countrys main player, the ready-made garment industry is
using the e-commerce application in the export sector, especially in the Ready Made Garments
(RMG) industry, to earn huge profit and revenues from e-commerce transaction particularly from
exporting.
In a survey made in December 2000, e-commerce was considered to be less potentially useful in
retail business of Bangladesh because of low per capital income, weak infrastructure, legal
environment, lack of trust between business and consumers, but the scenario has changed in the
past years. Now e-commerce websites have become very popular as evidenced by the growth
and commercial success of online-based home delivery and wide range of shopping. Syeda
Kamrun Ahmed, CEO of Bagdoom assumes that our country's e-commerce is now a Tk. 300
crore industry.
The bulk of e-commerce business in Bangladesh is dependent on Facebook, smart phones are
also playing an important role in this sector. Thus, majority of the e-commerce entrepreneurs are
youth and people aged between 25 to 34 years, shop the most from the local e-commerce sites.
Payment system of e-commerce is almost entirely Cash-on-Delivery (COD) and the reason for
this overwhelming method is that our country's e-commerce landscape is still in its very early
stages and therefore advance payment is nil, and card or online payment is not very popular due
to a perception of insecurity and low level of trust among card users. This infrastructure was
supported by AKM Fahim Mashroor, convener of BASIS e-Commerce Alliance, who said "All
developing markets went through this phase". Nevertheless, mobile banking systems are
flourishing and constantly developing now, and in near future will account for a greater share of
the online transactions, predicts Mashroor, a past president of Bangladesh Association of
Software and Information Services.
However, today the challenges are more mature, Neither online payment nor customer traction is
the biggest issue now- the biggest challenge is to provide quality service round the clock and to
establish trust among the consumers. That's why, most of the reputed e-commerce sites have set
up their primary goal to attract customer to their portal through this plot ,that is, providing
quality service and gaining customers' trust, as Jack Ma had said earlier, "For e-commerce, the
most important thing is trust".
E-commerce is now suffering from a lack of investment and skilled human resources, especially,
in the officer positions, which require employees to have completed at least a graduate level of
education. FBCCI President Abdul Matlub Ahmad said in a press conference that the government
should withdraw all taxes on e-commerce, and provide financial and policy supports to it.
However in our country, the power of e-commerce still remains a doubt in the minds of the

millions but still a fraction of the population are starting to enjoy the benefits of the e-commerce,
as it saves time and money, and make lives simpler.

Author

Findings

Perez,B. (2016,13 October)

E-commerce will become traditional business.

Rahman, S.(2016, April 05)

E-commerce is now a Tk. 300 crore industry.

Islam,Z.M. ( 2015, September 17)

E-commerce driven by youth.

Perez,B. (2016,13 October)

The most important thing is trust in e-commerce.

Ishtiaque, A. S., & Sarwar, A. (2016)

The bulk of e-commerce business in Bangladesh is

dependent on Facebook.

Rahman, S.(2016, April 05)

Almost entirely Cash-on-Delivery (COD).

Rahman, S.(2016, April 05)

Online payment is not very popular.

Ishtiaque, A. S., & Sarwar, A. (2016)

A lack of investment and skilled human resources.

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