Professional Documents
Culture Documents
E-COMMERCE IN BANGLADESH
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Table of Contents
Ecommerce .....................................................................................3
History of E-Commerce....................................................................3
Why e-Commerce for Bangladesh……………………………………………….4
Traditional and Electronics Business Transaction ............................5
Traditional Commerce vs e-Commerce............................................3
Dimensions of E-Commerce .............................................................6
Business to consumer(B2C) ..................................................7
Business to Business (B2B) ...................................................7
Business to Government(B2G) ..............................................7
Benefits of E-Commerce ...................................................................7
e-Commerce in Different Sector in Bangladesh ................................8
Overview of implementation stage of e-Commerce in Bangladesh 8
Some e-Commerce shop in Bangladesh ............................................9
The impact of e-Commerce ...............................................................9
Constraints to E-Commerce in Bangladesh......................................10
Challenges of E-commerce for Bangladesh......................................11
Recommendations………………………………………………………………………11
Conclusion........................................................................................12
References………………………………………………………………………………….13
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Ecommerce refers to the buying and selling of products or services over
electronic systems through Internet and other computer networks.
The most popular medium in which e-Commerce is conducted is the
internet. It combines a range of process such as:
Electronic Data Interchange (EDI)
Internet Applications
Network Applications
It does not include transactions over telephone, fax or any payments made
online for transactions whose terms were negotiated offline or by physical
means.
Some common applications related to electronic commerce are the
following:
Email
Enterprise content management
Instant messaging
Newsgroups
Online shopping and order tracking
Online banking
Online office suites
Domestic and international payment systems
Shopping cart software
Teleconferencing
Electronic tickets
History of E-Commerce
In 1950‟s companies began to use computers to store and process
internal transaction records.
By 1960‟s businesses that engaged large volume of transaction had
began exchanging transaction information on punched card.
In 1968 Transportation Data Co-ordination Committee (TDCC ) was
formed by some companies.
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In 1979 ANSI (American National Standards Institute) chattered a new
committee to develop uniform EDI (Electron Data Interchange).
In 1979: Online shopping was invented in the UK by Michael Aldrich.
In 1982: Minitel was introduced nationwide in France by France
Telecom and used for online ordering.
In 1984: World's first recorded B2C online home shopper. Mrs Jane
Snowball uses the Gateshead SIS/Tesco system to buy groceries.
In 1987: Swreg begins to provide software and shareware authors
means to sell their products online through an electronic Merchant
account.
In 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb,
using a NeXT computer.
In 1992: J.H. Snider and Terra Ziporyn publish Future Shop: How New
Technologies Will Change the Way We Shop and What We Buy. St.
Martin's Press. ISBN 0312063598.
In 1994: Netscape releases the Navigator browser in October under the
code name Mozilla. Pizza Hut offers pizza ordering on its Web page.
The first online bank opens. Attempts to offer flower delivery and
magazine subscriptions online. Adult materials also become
commercially available, as do cars and bikes. Netscape 1.0 is
introduced in late 1994 SSL encryption that made transactions secure.
In 1995: Jeff Bezos launches Amazon.com and the first commercial-free
24 hour, internet-only radio stations, Radio HK and NetRadio start
broadcasting. Dell and Cisco begin to aggressively use Internet for
commercial transactions. eBay is founded by computer programmer
Pierre Omidyar as AuctionWeb.
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prices across regions, find out whether prices vary by order fragmentation,
get awareness about substitute/ alternative products. Consequently, the
sellers/ exporters make sure that they are well portrayed in the cyber world
through websites and portals. Like buyers, sellers also benefit from increased
and more efficient access to the global market through the Internet.
Bangladesh is pursuing an economic policy of export-led growth. With the
rising forces of globalization, it is becoming increasingly important that the
private sector, particularly the export sectors are well prepared to meet the
requirements and expectations of the importers and also stand out in the
competition against exporters in other countries. In such a scenario, 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
context, 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.
The WTO has also developed rules and guidelines for global e-Commerce
transactions.
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Commerce vs. e-
Commerce Items
Sales Channel • Enterprise Internet • Manufacturer
Consumer Wholesaler
RetailerConsumer
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Dimensions of E-Commerce
Benefits of E-Commerce
The benefits of e-Commerce are many and many. Some of them include:
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24X7 operation: Round the clock operation is an expensive proposition
in the brick and mortar world while it is natural in the click and conquer
world
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RMG Sector
Online Shopping
Pay Bill
Education
Etc.
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www.haatbazar.com
www.number1shop.com
www.bdbazar.com
www.bengalcommerce.com
www.sonarmarketplace.com
www.upoharbd.com
www.bdgift.com
www.cellbazaar.com
Opportunities for new business: Business over the internet have global
customer reach. There are endless possibilities for business to exploit
and expand their customer base.
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Constraints to E-Commerce in Bangladesh
Out of 64 districts, Internet services are available only in 6 major district
headquarters. BTTB is planning to gradually roll out an IP network up to the
64 district headquarters. In January 2002, the Internet facilities were
extended to 12 districts. The project is running on very fast and today almost
40 plus districts are getting Internet facilities. Followings are the barriers of
e-commerce in Bangladesh:
• Very minimum number of users of web sites;
• Poor telecommunication infrastructure with limited fixed-line
access, unreliable connectivity and low bandwidth (9K);
• High price of computer and hardware: The per capita income of
our people is less than US$520. But in order to buy a computer it
is needed US$500 and for this reason, it is beyond the capacity
for a villager’s to buy it.
• Lack of technically efficient personnel;
• Lack of investment in hardware and software;
• The banking infrastructure in terms of electronic payments and
inter-bank connectivity is poor. As such, the customers of 5770
branches of the local banks are unable to operate their account
with the other branches of the same bank. Inter bank transaction
is more cumbersome as the clearing-house of the central bank is
not online. An inter-bank transaction may take even 2 weeks if
the branches are different cities. Only branches of the private
banks are interconnected with their respective head offices. They
are also satisfactorily computerized. This represents only 25% of
the entire banking sector.
• Small number of Credit Card users;
• Limitations of supportive legal system. Such as, exchange
controls, protection of telecommunication monopolies, restrictive
trade practice and prohibitions;
• Absence of cyber law;
• People's mindset and very slow and expensive Internet services;
• Enterprise managers' lack of initiative and leadership in taking
advantage of ecommerce;
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Challenges of E-commerce for Bangladesh
Network Infrastructure
o Intra-bank and Inter-bank Connectivity
Local and Global
o Bank-Client Connectivity
o Security of transaction
Banking mechanism
o Automation
o Convertibility of the Bangladesh currency
o Retention quota
o International credit cards
Capacity Building: Human, Technical and Regulatory
o Quick Settlement, Online credit Information, Skilled e-Manpower,
Regulatory Framework
Investment
Legal Infrastructure
Currency Convertibility: Access to Global Finance
E- Culture
Recommendations
The assessment of the e-commerce environmental forces of Bangladesh
leave us some room to recommend some steps and measures, that should
be undertaken by the policy makers and business stake holders for the full
fledged implementation and development of e-commerce in Bangladesh. The
recommendations are:
There should be an EFT (Electronic Fund Transfer) Gateway, which will
connect all finance and banking institutions, ATMs, POS and related
websites. Such Gateway will speed up the transactions among banks,
commercial institutions. This sort of infrastructure needs to be
implemented on priority basis.
A CCG (Credit Card Gateway) should be established. A credit card
gateway is a server that makes online credit card transactions safe
(Skinner, 2005). The software protocols in the CCG use the information
provided to check for availability of funds and to make sure the credit
card is not expired, lost or stolen. This takes only seconds. When the
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transaction is approved a receipt is generated for the customer, and
the funds are transferred to the vendor's bank account through EFT.
Unlicensed radio frequencies should be made available on demand and
VSAT operating licenses should not limit the bandwidth.
To improve banking mechanism, Bangladesh government should
compel the banking sectors to automate their operation and going
online by a specific period. The control of foreign exchange should be
liberalized gradually, and easier issuance of International Credit Cards
should be allowed, banks should take effective steps here.
Business associations and organizations should be made aware of the
benefits of e-commerce. Business organizations like FBCCI, DCCI, MCCI,
and BGMEA can play a significant role in promoting e-commerce in
Bangladesh.
Political commitment to improve governance and institutional strength
is essential for successful application of e-commerce.
Last but not least, National ICT policy, 2002 and enactment of the ICT
Act, 2005 is required to enhance the implementation of e-commerce.
CONCLUSION
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REFERENCES
http://www.manufacturingnews.com/news/editorials/cohen.html
http://www.businessweek.com/the_thread/economicsunbound/archives/2008/
06/the_importance.html
http://www.med.govt.nz/templates/MultipageDocumentPage____16344.aspx
http://www.cid.harvard.edu/cidtrade/issues/ecommerce.html
http://en.wikipedia.org/wiki/Ecommerce
http://www.google.com.bd/
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