E-Commerce in Bangladesh

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  • Topic: Electronic commerce, Business-to-business, Electronic Data Interchange
  • Pages : 8 (1832 words )
  • Download(s) : 107
  • Published : July 22, 2012
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Table of contents

E-Commerce.

Dimensions of E-commerce.

Promises of E-commerce.

Overview of implementation of e-commerce in Bangladesh.

Some E-commerce shops in Bangladesh.

Challenges of E-commerce.

Conclusion.

Analyze the promises and challenges of e-commerce application in Bangladesh

E-commerce is a way of conducting business over the Internet. Though it is a relatively new concept, it has the potential to alter the traditional form of economic activities. Already it affects such large sectors as communications, finance and retail trade and holds promises in areas such as education, health and government. The largest effects may be associated not with many of the impacts that command the most attention (i.e. customized product, elimination of middlemen) but with less visible, but potentially more pervasive, effects on routine business activities (i.e. ordering office paying bills, estimating demand). E-COMMERCE:

E-commerce 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).

Electronic Mail (E-Mail).
World Wide Web (WWW).
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.

Dimensions of E-Commerce
The three dimensions of e-commerce are Business-to-Consumers (B2C), Business-to- Business (B2B) and Business-to-Government (B2G). B2C e-commerce is unlikely to be of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front. In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C. The B2B application already exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry. RMG has the lion’s share of the export earnings in Bangladesh. The RMG sector has begun to use the Internet, and its dependence on ecommerce is likely to grow in the coming years. The Internet would enable them to seek information about potential buyers as well as raw material suppliers. Similarly the practice of posting a website by individual producers has begun. However, if Bangladeshi producers are unable to accommodate electronic transfer of payment and other facets of e-commerce, the business opportunity will move on to countries that have developed such systems. B2G e-commerce is possible in Bangladesh, but on a limited scale at this stage. The government is a major buyer of goods and services from the private sector. Typically, the government procures goods and services by inviting tenders. The availability of the RFP and other relevant documents on-line provides an alternate choice. Transactions involving information collection, obtaining various governmental forms, registering activities can also be conducted on-line. This will reduce time costs, corruption and the necessity of going through lengthy bureaucratic procedures as well as increasing transparency.

Promises of E-commerce:
The promises of e-commerce are...
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