Speakers for fostering e-commerce through automation, reforms

Speakers at a webinar on Saturday underscored the need for automation, regulation reforms, easy access to finance, inter-ministerial coordination, easy tax structure, cross-border digital trade facilitation to foster e-commerce business in Bangladesh.

They made the call at the virtual dialogue titled “Building a Sustainable Ecosystem for Ecommerce” organised by Dhaka Chamber of Commerce & Industry (DCCI).

DCCI President Rizwan Rahman said that the e-commerce ecosystem saw a massive vibe in the recent past. “Despite some challenges recently, the sector may attain sustainable growth with the intervention of the government and regulators,” he said.

He added that in 2020 transactions in the e-commerce sector stood at $2 billion, which may increase up to $2.5 billion in the current year.

“Moreover, if an international market leader like Amazon enters our market, it may create opportunities for local CMSME traders and manufacturers,” he said.      

Commerce Secretary Tapan Kanti Ghosh in his chief guest’s speech said that the private sector is playing a dominant role in the economy. In the e-commerce sector, reliability is the key issue to help this sector to grow.

The government does not want to impose strict regulations upon the sector so that small entrepreneurs can catch up on growth. Recently the escrow agent system was introduced to see the compliance in transactions between primary transacting parties, he added.

“The government is working hard to create a congenial regulatory atmosphere for ecommerce business.” said Tapan requesting the consumers not to be greedy.

“The government will also review the consumers’ protection law in line with the ecommerce regulations. There is a need for a ‘Data Protection Law’. We are working on automation of a range of service-providers like RJSC, NBR so that entrepreneurs get smooth service without hassle,” he also added.

Pathao President Fahim Ahmed said policy and regulatory guidelines are needed for a sustainable ecosystem. Unsuccessful ecommerce platforms with a huge liability and discounting method cannot sustain in the market.

“Based on short-term investment and a huge discount-giving model may give a bad name to the industries,” he said.  

Chief Operating Officer of Daraz Bangladesh Khondoker Tasfin Alam said excessive discounting is not sustainable. Customer readiness as well as sellers’ readiness is equally important.

“Sometimes a wrong model can become famous for the time being but it is not sustainable. Daraz Bangladesh has already invested Tk 500 crore in the last two years in logistic infrastructure,” he said.

Chief Information Officer of Nagad Ashish Chakraborty said Mobile Financial Service customers from rural areas can get products from anywhere in the country using mobile wallets.

General Secretary of e-CAB Muhammed Abdul Wahed Tomal said the e-commerce sector has got a tremendous growth right at this moment particularly due to Covid-19 situation.

“E-commerce is an integrated sector, agencies like Bangladesh Bank, NBR, LGRD, Ministry of Commerce, ICT Division all are involved.” Regarding escrow agents, he suggested making it automated.

“All the regulations should come under one umbrella,” he said while underscoring the importance of data protection to create confidence in the market. “We have to focus on our rural market and upskill the workforce.”

He also said that through the ecommerce sector, cross-border digital trading will be a billion-dollar industry in future. At present around 5 to 10 lakh f-commerce entrepreneurs are in operation in the country, he informed.