Thriving e-commerce sector

The Covid-19 pandemic was a blessing in disguise for many of the young and innovative e-commerce entrepreneurs of the country. E-commerce has positively changed the financial well-being of many entrepreneurs during the pandemic period. They have been breaking all barriers of traditional marketing through e-commerce platforms. The pandemic unlocked the momentum of e-commerce in Bangladesh. In the last couple of years, there has been an unprecedented rise in e-commerce platforms and online transactions. Online grocery stores in particular, have experienced double-digit growth. According to available data, Bangladesh now has 2,500 e-commerce sites selling products worth USD 2.07 billion. It is the 46th largest in the world in terms of e-commerce revenue.

According to an agency report carried in this newspaper on Saturday, SWAPNO (a government social security initiative) and the WING Project of UNDP Bangladesh are providing e-commerce entrepreneurs with suitable platforms. The report quotes Kajal Chatterjee, National Project Manager of SWAPNO and Wing Project of UNDP, as saying, "We have given 200 smartphones to our root level entrepreneurs from various UNDP projects and others based on a pre-set criterion so that they can run their business with that phone. Marketing is the most crucial thing for online business, which we are trying to do for our entrepreneurs." He further said, "We are building up and expanding our networks for promoting our entrepreneurs and creating more product showcasing opportunities for domestic markets and cross border selling".

The UNDP e-commerce platform 'Anondomela' has helped enterprising people become entrepreneurs. The United Nations Development Programme (UNDP) online marketplace for entrepreneurs has created linkages between entrepreneurs and the marketplace that helps the country's small entrepreneurs be self-reliant by offering fair prices and various selling options. Entrepreneurs are hosting their products on the site, which allows buyers from the comfort of their homes to order products directly from the SMEs.

Even after virus fear has eased online orders are on the rise, and more sellers from diversified backgrounds are going online. Despite the economy reopening, the luxury of shopping from the comfort of their homes is still a preferred option for many. The online experience is a lesson that will not be unlearned anytime soon.

According to experts, the country's e-commerce market is heading for a much more significant jump as the ecosystem is developing in line with the increasing online trust of consumers and sellers. Even the rise and fall of Ponzi schemes like platforms Evaly, Orange, and others have not been able to hurt the market's growth momentum.

The size of Bangladesh's e-commerce sector is projected to be around $3 billion by 2023. In Bangladesh, there is a large segment of people with expendable income. There has been historical evidence of consumers spending more money on fashion, food, and consumables when they have higher expendable income. So, the e-commerce sector will boom further. The growth of mobile financial services and stronger internet coverage in the country will help e-commerce to expand even more.

While e-commerce has seen unprecedented growth in the recent years, there are areas of concern. There are hurdles to the sector's continued growth, particularly the challenges of ensuring consumers' rights and compliance in a poorly regulated e-commerce market. It is believed that millions of transactions are taking place on a daily basis, circumventing proper legal procedures and in violation of consumer rights. According to media reports, unauthorised sellers are selling counterfeit products, hurting the image of reputed brands. On a broader scale, this may also shake people's confidence and trust in the e-commerce sector.

At present e-commerce is mainly serving the urban people. If it is to reach the masses, the authorities concerned must develop financial, legal, and digital infrastructures and invest accordingly for a future that is genuinely digital but also accessible. Consumers must be an integral part of the process, and their concerns and trust issues must be addressed properly.