Home ›› 19 Aug 2022 ›› Opinion
Because Jeff Bezos, the creator of Amazon, an international e-commerce corporation, never imagined becoming rich overnight, he has managed to rank as the world’s richest person. He was merely an ordinary entrepreneur two decades back. But he could see a day coming when people would purchase anything with a single click on a computer or mobile keypad. Malls will become less popular, and stores will be compelled to present a variety of offerings.
Today, his vision has come to pass. The necessary items are now accessible with only one click. People directly purchase their favorite foods at home rather than going to stores or eating out. Everything is available online, including clothes, jewelry, pharmaceuticals, food, technology, cosmetics, and veggies. As a result, e-commerce is becoming more popular among consumers across the globe.
E-commerce has grown exponentially in our country over the past few years, particularly during the Corona era. Aggressive actions of some groups were at the forefront of the conversation about this emerging industry, raising fresh concerns.
In recent years, a few e-commerce enterprises have jeopardized the enormous potential of e-commerce on online platforms because of their flimsy and fraud-based business models. Additionally, thousands of new business owners are in danger. Almost everyone wants to create practical measures and step up supervision to restore customer faith in this situation. Some, however, attribute this loss to the clients’ greed. Most people are concerned about the sector’s overall prospects.
Currently, there are an estimated 2,500 e-commerce websites in the country. In addition, roughly 200,000 business owners use Facebook or F-commerce, a social networking site.
This country’s economy now has a lot of room for growth because of the rapid growth of the e-commerce industry. However, there have been numerous cases of client fraud at various times under the guise of MLM firms, multifunctional organizations, or cooperative societies. A fresh e-fraud has emerged recently. At least 11 companies have made their identities known this year for defrauding customers out of more than TK 3,000 crore by offering them expensive goods. The majority of businesses that steal money from customers are young. These new e-commerce businesses have made a ton of money by luring customers in with unbelievable deals before getting to know them.
It is to be noted that the Bangladeshi e-commerce industry started to develop about five years ago. This industry has expanded by nearly 100 per cent in the last three years. That is, it almost double annually. E-commerce considerably rose when the Covid-19 lockdown started in March of the prior year. Approximately $8 billion is the current market value of this sector. By 2023, analysts expect a TK 25,000 crore milestone to be attained, according to analysts.
But as we can see, this industry has been quite unpredictable during the last few months. In particular, the continual rise in instability has been exacerbated by the deception of so-called anonymous companies. The leaders of a disputed e-commerce company were detained due to the theft of client and merchant funds. This company used to provide its customers with products at a significant discount. As a result, many think the company has been losing money since it was founded.
There are already 30,000 online organisations in the country. Only 10 to 12 have been charged according to media reports. Many believe that a few companies’ poor reputations should not be a standard to justify the entire e-commerce industry. As was previously said, the resources of a reputable MLM organization were seized. The consumers were in a vicious circle with the properties but never received their money back. Many people believe that the government should consider customers’ interests when protecting them so that this does not occur in this situation. However, others don’t think that locking up those who launder money is the answer. The government must figure out the means to ensure the accused are punished.
To maintain trust in the e-commerce sector, the Digital Commerce Directive by the Ministry of Commerce and the Escrow Policy by Bangladesh Bank released guidelines and directories for conducting digital commerce in 2021, according to a newspaper report.
The rules primarily outline the timing of product delivery and money-back refunds. It has been said that deliveries must be made within five days if the buyer and the online retailer are in the same city. Whenever a location is in a different town, a 10-day supply of the commodities must be guaranteed. No payment can be taken for a product if it is not in stock. Only after the products have been delivered can the advance fee be charged to the seller’s account.
Many experts think this industry has been negatively impacted by the controversial activities of a few dubious e-companies. The amount of advance payments has decreased along with the number of orders. The method of cash on delivery (COD) has grown. According to the industry insiders, COD results from a confidence crisis. The situation will not change overnight. It will take several months. Although the large e-commerce businesses, which have more clients, do not have many issues, the small businesses have been significantly impacted.
The public’s confidence in e-commerce businesses has dropped a little bit. Along with fewer new consumers, existing ones are also losing their interest. E-commerce experts claim that orders have plummeted by 20 per cent–25 per cent over the past several months. In addition, many businesses can no longer accept advance purchases because payment gateway companies are too late in paying in cash. On the other hand, there is now more cash on delivery. As a result, e-commerce businesses now have higher operating costs. In addition, many worry about the impact on small business owners if the government ultimately imposes the issue of compliance on e-commerce.
“We believe that if marketplaces and entrepreneurs are restricted excessively right from the inception, the genuine drive may not be sustainable for us to reap the maximum benefits going forward,” says AHM Hasinul Quddus Rusho, Chief Corporate Affairs Officer of Daraz Bangladesh Limited.
Many people anticipate that the e-commerce market will transition to a sustainable model at this time, as the coronavirus epidemic is beginning to recede. On the other hand, consumers’ faith in e-commerce enterprises is currently in decline.
Many say this sector will have problems if e-commerce companies do not give up the manual system and become completely technology-based. The government has reportedly taken several decisions to establish accountability and prevent fraud in the growing e-commerce sector. It has been said that a regulatory authority will be formed. Besides, some amendments will also be made to the Digital Security Act and Money Laundering Act so that people engaging in digital fraud can be prosecuted. The crucial issue is restoring trust and finding a way out of this crisis.
Some experts opine on considering some issues to solve the crisis, which can be summarized as follows:
Firstly, it is necessary to ensure strict punishment, good governance, and the law’s implementation. Secondly, people related to this business should emphasize achieving honesty, values, and trust.
E-commerce is largely dependent on trust and confidence. In e-commerce companies where people have more faith, those organizations’ reputations and wealth are also high. In this situation, every e-commerce company should conduct business with honest dealings, steadfast commitment, and healthy competitiveness. In addition, various regulatory authorities should also focus on training to develop ethical principles.
Thirdly there should be a change in mindset. The entrepreneur or the owner must avoid the tendency to become a rich person overnight. They also should avoid unethical business practices and sick mentalities.
Fourthly, it is vital to guarantee the accountability of the relevant regulatory organisations or associations, including e-CAB, Bangladesh Bank, the Ministry of Commerce, and the Ministry of Information Technology. It would be best if they abandoned the tendency to try to deflect blame or place one person’s actions on another. Instead, they should coordinate with all relevant stakeholders to establish good governance.
Fifthly, if necessary, digital monitoring can be strengthened by increasing the workforce. Every complaint should be carefully examined and reported on. A consumer complaint cell should be established so that dishonest online retailers can be forewarned immediately and stopped if required. A sustainable e-commerce supply network should be established based on trust, honesty, and ethical behavior.
The writer is a freelance contributor. He can be contacted at
rana.edru@gmail.com
