E-commerce in Bangladesh

E-commerce

E-commerce market

The e-commerce market in Bangladesh has been growing at a tremendous rate. However, the segment currently accounts for a small contribution to the country's economy, as the Internet penetration rate is still quite low. Still, e-commerce has a big potential in the country. In 2017, e-commerce generated almost US$ 120 million in sales. Over 80% of e-commerce traffic in Bangladesh comes from three major regions: Dhaka, which accounts for 35% of total traffic, closely followed by Chittagong at 29%, and Gazipur with 15% of total e-commerce activity each year. Online customers in Bangladesh are primarily interested in purchasing electronics and mobile phones, and they tend to prefer low-cost items. There is a number of local e-commerce platforms in the market, and foreign ones have started investing in Bangladesh. In large urban areas, B2C websites have become extremely popular, as evidenced by the growth of online food delivery sites like HungryNaki and FoodPanda. Cross-border e-commerce is still largely unexplored, particularly due to the fact that online payment remains limited, and cash transactions are still the predominant payment method. According to the e-Commerce Association of Bangladesh, more than 90% of e-commerce users prefer the cash-on-delivery payment model. Cash-on-delivery constitutes 95% of all the payments that take place, followed by bank/wire transfer (2%), bKash/Ukash (2%), and credit cards (1%). In recent years, smartphones have accounted for a big portion of the market, making them a target for most businesses. Most online shoppers in Bangladesh are between 25 and 34 years and most of them (83%) are male, indicating a big gender divide. Some of the most popular e-commerce websites in the country include daraz.com.bd, ajkerdeal.com, agdoom.com, chaldal.com, and rokomari.com.