Consumers gain from e-commerce since they do not have to leave their homes and can purchase things that are not available in neighboring stores by just browsing websites online. It also allows users to purchase a greater choice of products while saving time. Online shopping gives customers more power. They can do product research and pricing comparisons amongst retailers. By allowing both producers and consumers to bypass intermediaries, e-commerce technologies have the potential to reduce transaction costs.
All of the above are beneficial. However, we have seen in the recent past, many e-commerce consumers in Bangladesh have been adversely affected by harmful actions conducted by e-commerce businesses. The lack of a robust and reliable e-commerce infrastructure is a significant factor in such negative events. The Bangladesh e-commerce business is predicted to grow in leaps and bounds in the near future, thanks to rising smart phone penetration, the deployment of 4G networks, and rising consumer wealth. Is Bangladesh, however, ready for e-commerce at this time?
E-commerce has the potential to transform Bangladesh’s economy. It has the ability to connect Bangladesh’s market to the global market, which promotes and supports the country’s economic growth. However, e-commerce in Bangladesh is still in its early phases, and there are significant difficulties that could stifle its growth, despite the fact that it is typically touted as a high-growth sector. In truth, it is still in its infancy, with neither a stable market nor policies or regulations in place.
For Bangladeshi households, e-commerce as a means of doing business is a novel concept. Face-to-face transactions are the most common. Bangladeshi shoppers want to touch and see the products they want, negotiate the best bargains face to face, and purchase. This is the type of commercial activity we are used to, and it is really different from the way of doing online.
Virtually purchasing products and services is not a risk that most consumers are willing to take. They also have doubts about whether online merchants can be trusted to provide products and services on time. Slow acceptance through tiny experiments using “Payment on Delivery” as a unique approach has taken a toll on the company’s natural rapid expansion.
Merchants, on the other hand, are wary of selling their goods over the internet. They believe it is a big commercial risk to take, given society’s lack of online buying habits and the fact that electronic ways of doing business are not well-known. They are rarely eager to invest in online businesses. As a result, both of these factors stifle the expansion of e-commerce in Bangladesh. Essentially, ‘trust’ is a key issue in the online business environment, and because Bangladesh lacks e-commerce norms and legislation, both sellers and purchasers have nowhere to turn in the event of a dispute.
Because of various dishonest tactics by a segment of e-commerce websites, there has recently been a significant trust deficit between online clients and e-commerce businesses in general. Some e-commerce sites, such as Evaly, Eorange, and Dhamaka, have recently made news due to their fraudulent operations. The government has now stepped in to take the owners of some of the fraudulent e-commerce companies accountable.
Many are also blaming the clients who were duped by devious e-commerce companies for their excessive avarice. In a public interest lawsuit involving an e-commerce portal’s accused act of defrauding clients, the High Court cautioned the public against being greedy. The court also ordered everyone involved to increase public awareness about the problem. Some government officials have also alluded to the public’s proclivity to become wealthy overnight.
E-commerce necessitates a solid technology base as well. One of the most important is having access to high-speed internet. To manage an online business, you will need a reliable and fast internet connection. However, our internet connection is generally limited and slow. And having it comes at a hefty price. Electronic devices such as a computer or a phone set are another important technology requirement for e-commerce. The cost of owning such electronic gadgets is another barrier to the expansion of e-commerce. We are far behind in terms of developing a simple and reliable online payment system. In most circumstances, the lack of this important facility is a significant obstacle for both the seller and the buyer.
Most critically, an ideal legal structure and policy are essential to conduct e-commerce. This is a basic criterion that allows both buyers and sellers to have space. It is impossible to do online business without them. Despite the rapid expansion of e-commerce, the government has been slow to act as a facilitator, leaving a gap in the e-commerce policy framework. Bangladesh still has a long way to go in terms of developing an effective and dependable e-commerce infrastructure.
To witness an e-commerce boom based on confidence and faith, the government, professionals, online merchants, banks, and customers must all work together flawlessly. The nation will gain from e-commerce outputs if they can work together and collaborate to create a robust e-commerce ecosystem that avoids all impediments.
Md Khalilur Rahman Sajal is Executive Director,
Voluntary Consumers Training and Awareness Society (VOCTA)