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Characteristics And Challenges Of E-Commerce In Bangladesh

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What is E-commerce actually? It is exchange of values. In simpler way of describing, it is the buying and selling products online although E-commerce term is very wide. However, for most companies today electronic E-commerce is more than just buying and selling products online rather it encompasses the entire online process of developing marketing, selling, delivering, servicing and paying for products and services trans acted on internet work global marketplace is of customers with the support of a worldwide network of business partners. E-Commerce has changed our lifestyle and with its existence today we are enjoying everything at our doorsteps. It is a platform where the business transactions are carried over the internet.

E-Commerce is vital in business market and it establishes business to business relationship. It enables easy exchange of data online and enables easy exchanges inside limited capacity to focus time. E-commerce likewise enables online payment reducing the hassle of physical payment. E-commerce reduces the expense of advancement and other services. It provides better connectivity as it tends to be accessed basically through internet and is much convenient to customers as they can sign on to the internet from anywhere anytime and can purchase and sell the items at a single click.

Today many entrepreneurs from brick and mortar became click and mortar as because there is no entry barrier and gives profitability. Along these lines the online business gives intuitive and easy to use administration to its clients. This mind-boggling administration has made the business to achieve its high pinnacle. So as to endure and remain in this aggressive and changing business sector we ought to pick to web-based business.

The characteristics of E-Commerce.

Business-to-Business E-Commerce: Among the different classes of web-based business, business-to-business (B2B) trade is the biggest classification. This includes organizations transmitting e-acquisition, store network the board, arrange partnerships, and arranging buy exchanges over the web or web. One of the significant purposes why organizations use internet business is to reduce cost.

Business-to-Consumer E-Commerce: Business-to-buyer (B2C) web-based business is the second biggest classification and includes organizations acquainting items and administrations with customers by means of web innovations. This incorporates organizations selling programming and equipment through the web, taking requests for items that are thusly conveyed to the shopper, and giving computerized administrations, for example, online magazines and web indexes.

Customer to customer E-Commerce: Consumer to Consumer, C2C, online business movement is later, and more often than not requires a business to play the mediator. Organizations like eBay and Amazon have made C2C increasingly famous. The manner in which it works is organizations that have items to sell show them through an outsider site. Consumers hoping to buy items visit the site and pursuit the accessible items. The consumer buys the item and the dealer is in charge of conveying the item. The business that plays the agent more often than not requires an exchange charge from either the merchant or purchaser.

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Business-to-Government E-Commerce: Business-to-government (B2G) online business is worried about the requirement for business to pitch products or administrations to governments or government offices. Such exercises incorporate providing the military, police power, medical clinics and schools with items and administrations. Moreover, organizations will regularly contend in an online domain for contracts to give administrations to the general population in the interest of the legislature.

Online Payment: In E-commerce online payment is a very important matter. If we do shop online but have to go out for payment so what’s the use of it then? So online payment i.e. digital payment was included in e commerce and PayPal was the first to invent this method. Later many other methods were established from using debit/credit cards to mobile banking. So thus, the online payment has to be in any E-Commerce site. In Bangladesh SSLZ commerce links the payment gateway with other banks and mobile payment. money exchanges are as yet the dominating budgetary exchange technique for most of the populace.

Business Processes: Business process alludes to the utilization of web-based business to tailor the inward exercises of a business so as to expand their productivity and adequacy. Using internet business, organizations can adjust supply chains and other benefits.

The business forms are extensively isolated into five principle classifications to be specific:

  • Market item and administrations,
  • Sell and convey items and administrations,
  • Process installments,
  • Manage relationship,
  • Manage the work.

Why E-Commerce for Bangladesh

The internet is very much easily accessible to the people of Bangladesh now a days and the whole world is connected via internet. Internet made our life much easier especially when the search engines became much stronger. And that’s when E-commerce happened. People get to buy/trade items virtually without going out. In 2006 cellbazaar was made with help of Grameenphone which the first E-commerce site in Bangladesh was. I myself have purchased and sold mobile phone through it and it was such easy and profitable. People’s buying capacity has now been increased than before they want to have foreign products also so without E-commerce it is very difficult for them. And government can also benefit from this as well from earning import taxes. Since Bangladesh is pursuing an economic policy of export-led growth. To cope up with the rest of the world the domestic companies should also start business through E-commerce as this will help them exposed together with the foreign products. Another reason why Bangladesh should adapt E-commerce because in many districts of Bangladesh, many of them are specialized and unique in producing commodities. And many people cannot buy from other districts even if they know about it. Simply because being geographically distanced. So, if those commodities get mobilized through E-commerce then the living standard will increase hence increasing the disposable income of those manufacturers from the poor and far districts. Two issues are becoming particularly important for Bangladeshi export sectors –one, whether businesses are automating their internal processes with the use of ICTs to become increasingly efficient and competitive in a global on text, and two, whether businesses have effective presence and participation in the cyber world. International organizations such as UNCTAD (United Nations Center for Trade and Development) and WTO (World Trade Organization) have, over the last several years, put much emphasis on the importance of e-Commerce for developing countries. UNCTAD has special programs to facilitate developing countries to transition into e-Commerce.

Challenges of E-Commerce for Bangladesh

  • Network accessibility for rural communities in getting an internet connection.
  • Inadequate Skilled IT professional.
  • Lack of Trustworthiness on IT infrastructure.
  • Low bandwidth and unreliable connection.
  • Lack of sufficient electronic payment services.
  • Costly and limited internet connection.
  • Consumer dissatisfaction due to inability to delivering correct product on time.
  • Unconsciousness about online based services.
  • Inherent tendency toward traditional transaction systems.
  • Frequent change in government policies regarding ICT and ecommerce.
  • Insufficient legal law against deception arising from online transactions.
  • E-Culture recognizability


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

  • Bangladeshi e-commerce sites ought to provide greater layers of security for their payment procedures.
  • E-commerce businesses require rapid internet, which is absent in the rustic areas. The government should take the internet as a fundamental element of business, especially e-commerce business. It must ensure minimal effort, rapid internet for rustic people to transform its vision of Digital Bangladesh into reality.
  • Bangladeshi e-commerce sites should concentrate more on timely deliveries.
  • Bangladeshi e-commerce sites should plan to improve customer service and address areas of concern to reach out to the piece of the populace which isn’t selecting e-commerce yet.
  • To penetrate into the worldwide market, the government needs to reform its regulations regarding online exchanges and upgrade the entire system.
  • The Bangladesh Bank ought to formulate policies to ease the credit process for e-commerce entrepreneurs.
  • It is essential for Bangladesh to update the ICT law relating to e-commerce. It ought to be done concentrating on international practices.


A key reason why e-commerce, especially the business-to-business segment, is developing so rapidly is its huge effect on expenses. If the cost is reduced, then through E-commerce can the companies can gain competitive advantage. Achieving these additions is therefore contingent on a number of elements, including access to e-commerce systems and the needed aptitudes. To reap the potential cost investment funds completely, firms must open up their internal systems to suppliers and customers. Ultimately if the domestic companies make profit the economy gets better.

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Characteristics And Challenges Of E-Commerce In Bangladesh. (2021, September 28). Edubirdie. Retrieved February 3, 2023, from
“Characteristics And Challenges Of E-Commerce In Bangladesh.” Edubirdie, 28 Sept. 2021,
Characteristics And Challenges Of E-Commerce In Bangladesh. [online]. Available at: <> [Accessed 3 Feb. 2023].
Characteristics And Challenges Of E-Commerce In Bangladesh [Internet]. Edubirdie. 2021 Sept 28 [cited 2023 Feb 3]. Available from:
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