E- Commerce in Bangladesh

IT can be very inconvenient for a consumer not getting a product in his locality when it is available in other places. It happens in Khulna and other areas. For example, Khulna residents need to come to Dhaka to buy rare medicines. Students of Rajshahi University need to come to Dhaka to get their reference books at Nilkhet. It would be convenient for them if they could order online. It would save their time as well as money as consumers. For the country, it would increase employment.

Online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalisation, the Internet makes the world smaller and e-commerce facilitates marketing and shopping from home. E-commerce facilitate business with customers over the internet. In e-commerce, customers can buy goods and services over the internet.

What needs to be done to start e-commerce? Bangladesh already has trained IT professionals. Its graduates are working with ISPs only for Tk. 4000 (60 dollar!) per month. This shows that Bangladesh already has an abundance of trained IT professionals. Introduction of e-commerce would open new employment opportunities in the country.

The member of IT users in Bangladesh is increasing rapidly. According to International Telecommunication Union (ITU) report, Bangladesh had 450,000 internet users in 2007. In October 20, 2008, number of mobile phone users in Bangladesh stood at 45.09 million. More than 10,000 people are connected in Face book through Bangladesh channels. All the districts headquarters have cyber cafes. Youth accounting for more than 35 per cent of the total population gives Bangladesh an edge to opt for e-commerce.

The country needs intermediary institutions to complete transactions. And fortunately, banks, Visa and Master Card operating in Bangladesh, can do it. Bangladesh has the infrastructure to start. Stable internet connection and a law supporting e-commerce are prerequisites.

The government needs to make a realistic e-commerce law. It should work in collaboration with the private sector to ensure a stable and reliable internet connection. E-commerce facilitates payment of utility bills, fees etc.

*This article was published on the daily Financial Express in Bangladesh on January 12, 2009.