|A Quick Snippet for the eCommerce industry in Bangladesh
|1. Bangladesh’s eCommerce industry is expected to grow at a CAGR of 26%
2. The most popular categories on Bangladeshi eCommerce websites are clothing, electronics, and cosmetics
3. There are three major players in the Bangladeshi eCommerce market – Evaly, daraz, and Alesha Mart
4. There are many challenges facing the eCommerce industry in Bangladesh, including low internet penetration rates and high levels of poverty
5. Bangladesh is the third largest eCommerce market in South Asia
6. The Bangladeshi government has been working to promote the development of this industry and attract foreign investment
7. The government has introduced policies that make it easier for companies to do business in Bangladesh
8. Bangladesh’s economy is booming thanks to cheap labor costs and low production
Let's See the Topic Overview
The eCommerce Industry in Bangladesh
The eCommerce industry in Bangladesh is still a baby, but it is growing rapidly as more and more people are buying online. According to a recent study, the eCommerce market size in Bangladesh will reach $1 billion by 2020. With more and more Bangladeshi people embracing digital shopping, it’s no wonder that this eCommerce industry will grow at such an exponential rate.
In Bangladesh, there are around 30 million internet users who can now buy online with over 300 retailers available (according to Google). There is also a high rate of mobile phone usage which means that these consumers are able to purchase goods from their phones or through social media platforms.
In 2021, the total revenue generated from online sales was $3 billion USD with a growth rate exceeding 26% YOY (year on year). This staggering growth makes this country one of the top emerging markets for eCommerce worldwide. It has grown tremendously over the last decade and continues to grow at an exponential rate.
The Rise of the eCommerce Industry in Bangladesh
In the past decade, Bangladesh has been experiencing rapid economic development. The country is quickly emerging as a global player in the international economy and its eCommerce industry is only one of many examples. As the economy of Bangladesh continues to grow, more and more people are starting their own businesses. In some cases, these new business owners have had a lot of success in their ventures, but many others have found that it is difficult to compete with established companies on a global scale. One way for small Bangladeshi entrepreneurs to get started is by launching an eCommerce site.
In the past five years, the number of people doing business online has increased by nearly 150%. Online shopping is becoming increasingly common and popular among Bangladeshi consumers. The industry is valued at around $3 Billion and is expected to continue growing rapidly.
Bangladesh is one of the most densely populated countries in the world, with a population quickly approaching 200 million people. With such high rates of poverty and unemployment, it’s no wonder that this country has been struggling to make ends meet for years. The rise of eCommerce in Bangladesh provides new opportunities for not only business owners but also consumers who might otherwise be unable to afford goods due to their cost or geographic location. Although there are still many obstacles to overcome before this industry can become sustainable, Bangladeshi entrepreneurs are finding ways around them and making great headway towards creating a more prosperous society as they do so.
Challenges Faced by the eCommerce Industry in Bangladesh
In Bangladesh, the eCommerce industry is still in its infancy. The market is dominated by a few large players who have taken advantage of low-cost mobile phone technology to reach rural populations and provide a more cost-effective alternative to retail stores. Yet, these companies are struggling with many issues that hinder their growth:
- Lack of trust among consumers due to high rates of fraud
- Difficulties in establishing an offline presence which can help them compete against other retailers or brands;
- Inability to track customer preferences.
These challenges will be difficult for any company without sufficient resources and experience in the Bangladeshi market.
The Bangladeshi people are quickly adopting new technologies and the latest trends. However, many challenges exist for these companies to overcome. Some of these include following below
- High cost of living
- Low wages
- Lack of banking facilities and
- Poor infrastructure.
These issues make it difficult for customers to easily buy products from online stores due to how far away they live or their inability to find a bank near them that will allow them to withdraw cash in order to buy goods online with ease (needless to say) this has made it challenging for eCommerce businesses in Bangladesh’s developing economy.
Future Prospects for the eCommerce Industry in Bangladesh
The eCommerce industry in Bangladesh has really taken off in recent years and is now an integral part of the country’s economy. However, as the future prospects for this flourishing sector are unclear, it remains to be seen whether Bangladesh will continue to see growth in this area.
After two decades of stagnation, online sales are growing and the government has begun to implement regulations in order to protect consumers. However, as the markets grow and become more competitive, it will be up to entrepreneurs to understand how they can use social media marketing and mobile-friendly websites in order for their business to stand out from the crowd.
With a growing middle-class population and the right infrastructure to support it, Bangladesh has huge potential for growth in this sector. In order to ensure that Bangladeshi startups do not get left behind as these new major players make their mark on the country’s economy, they will need more funding opportunities and training programs. One way for them to accomplish this is by collaborating with larger organizations to gain access to resources and expertise they would otherwise be unable to obtain on their own.
With such favorable conditions for online businesses already established, there seems no limit to how high this figure could go if things keep going well. Nevertheless, before we start getting too excited about what may happen next there are some factors that need discussing
How to Overcome Challenges Faced by the Bangladeshi eCommerce industry
The Bangladeshi eCommerce industry is one of the fastest-growing industries in Bangladesh, but it has faced some challenges. Here we will give you 5 tips to overcome these challenges.
- Focus on your niche – It’s important to have a specific goal for your company and stay focused on that goal. You should be able to answer “What do I sell?” and “Who is my customer?” before choosing which product categories you want to shop from
- Partner with other companies- When looking at partnerships, you should look for businesses or individuals who can help promote your products or services
- Must need SEO Specialist; invest in SEO- Having good search engine optimization (SEO) will allow more people find out about your business
- Social Media Branding and Marketin
- Increase trust level.
The challenges faced by this emerging industry are few but significant, such as the lack of good customer service skills among employees in many online stores, low credit card penetration rates and high levels of cybercrime. While these challenges exist for all industries in Bangladesh, they are exacerbated by other factors specific to this country’s economy. For example, people living in rural areas have little access to the internet or mobile phones which could help them buy goods online – one problem that can be addressed through subsidies for telecoms firms operating in remote areas. In order for this industry to continue growing, we need more investments in infrastructure that will allow people living outside urban areas access to high-speed internet and smartphones.
There is still a lack of trust from consumers towards online transactions, a high amount of taxes on imported goods, no international shipping available for most websites and expensive delivery costs (particularly for rural areas), among others. These challenges need to be addressed if Bangladesh wants its e-commerce industry to grow significantly. Solutions include lowering import taxes on products such as electronics and clothes so they are more affordable for people living in rural areas who cannot afford expensive deliveries or high amounts of duties/taxes on imports.
We all know that Bangladesh is a developing country with many challenges. One of the main challenges faced by this country is the lack of infrastructure which makes it difficult to implement e-commerce on a large scale. Yet, despite these limitations, some Bangladeshi entrepreneurs have made headway into e-commerce and are now able to offer innovative products for their customers. While they face difficulties in scaling up due to infrastructural constraints, these entrepreneurs have found ways around them by delivering goods through local couriers or partnering with other businesses. The end result is an improved customer experience when shopping online and more business opportunities for those who take advantage of them!
In order to grow sustainably and remain competitive in a globalizing world, Bangladesh needs to be cognizant of these challenges while continuing its drive for innovation. However, there are also a number of challenges faced by Bangladeshi e-commerce companies and sellers that must be addressed including low internet penetration rates, poor infrastructure, lack of access to financing, lack of skilled labor force and an underdeveloped logistics sector.
E-commerce has had a huge impact on the Bangladeshi economy. In fact, it is reported that e-commerce revenues are projected to grow by over 500% in the next five years. With this potential for growth and opportunity, there’s no question why so many people want to break into Bangladesh’s e-commerce industry. However, due to a number of challenges faced by the Bangladeshi e-commerce industry, it can be difficult for newcomers to get their footing in this growing market.
Most Bangladeshi people are not able to shop online due to lack of internet connection and smartphones. But Bangladesh is one of the fastest-growing economies in Asia, so there’s a good chance that this will change over time. Stay connected with me for more information on how eCommerce may grow in Bangladesh as well as other stories about marketing or digital trends impacting business owners around the world! As an SEO specialist in Bangladesh and digital marketing advisor, I will provide a proper consultancy that how can you boost up your eCommerce business.