Bangladesh, like the rest of the world, is now experiencing a digital revolution. The digital revolution in developing technologies is constantly transforming how people communicate, conduct business, and receive information. The economic activities that result from utilizing digital technology to connect people, companies, devices, data, and operations are referred to as the “digital economy.” Web-based interactions and transactions across several industries and platforms, including big data, mobile, Internet, and information and communications technology, are all included.
To accelerate the country’s economic growth, the government of Bangladesh has introduced Digital Bangladesh as its primary development goal. The government has acknowledged the ICT sector as one with enormous growth potential. Moreover, a comprehensive ICT policy and various auxiliary measures have been implemented in recognition of this fact by the government. In addition, over the years, the digital commerce sector has experienced tremendous growth. The term ‘digital commerce’ is related to digital payments, electronic auctions, electronic digital bureaucracy, etc. Also, it is the buying and selling of goods and services using the Internet, mobile networks, and commerce infrastructure. Without a doubt, since the COVID-19 pandemic, there has been a significant increase in reliance on digital commerce. Due to the rapid increase in Internet subscribers, the advancement of the logistics sector, and the massive improvement in online banking and mobile financial services (MFS), the sector has flourished in recent years.
It is evident that the country’s digital commerce sector has been expanding steadily over the years, yet several hurdles and limitations have been observed in the sector. Slow internet, a lack of product quality assurance, and disruptions in product and parcel delivery are some of the major constraints. The expansion of trade in the e-commerce and digital commerce sectors is impeded by inadequate supply and transportation infrastructure. Especially in the delivery of perishable goods or home-made food, if delivery is not possible on time, the main problem arises. Due to this, both the sellers and the consumers face losses. The development and alignment of logistical support with the overall situation need to be overhauled. Moreover, the transportation system also creates obstacles for entrepreneurs to expand their businesses. Fast delivery services require quality roads and highways, which should be of international standards. Moreover, traffic congestion in the city causes delays in the delivery of goods.
It’s encouraging that many female entrepreneurs utilized the Facebook platform (F-Commerce) to enter the market during the COVID-19 outbreak. Nowadays, a lot of female business owners use Facebook to manage their businesses. However, cyberbullying (by both men and women) on online platforms has now become a prominent problem, which is discouraging many women entrepreneurs from running businesses. Nevertheless, it can be undoubtedly said that the development and prevalence of e-commerce and digital commerce have made women financially independent and self-reliant. They are now actively participating in decision-making. Women are no longer dependent on their families for financial support, as in the past.
However, there are bandwidth problems in rural areas, and Bangladesh’s position in broadband is not very satisfactory. The absence of appropriate internet facilities makes business development through digital commerce questionable. Furthermore, despite the Consumer Rights Protection Department of Bangladesh’s engagement in upholding consumer rights, fraud in the e-commerce sector and online purchasing is currently a big concern, and the protection of online consumer rights is impeded by the dearth of manpower.
The expansion of small and cottage industries appears to have enormous potential, given these businesses are connected to digital commerce. Most entrepreneurs in small and cottage industries have relatively little capital, so running a business through digital commerce is quite convenient for them.
Nevertheless, Bangladesh has adopted several policies, strategies, and action plans to support the development of the digital commerce sector. Digital Bangladesh is a major actor in the knowledge-based economy, driven by the ICT sector. Bangladesh wants to become a HIC by FY2021, with an emphasis on increasing value creation through information and ideas. With the computerization of information processing tasks and the digitization of public services, the Fourth Industrial Revolution (4IR) has a firm foundation in ICT and is driving the growth of the knowledge-based economy. Several strategies and policies have been taken by the GoB to flourish this sector. To smoothen the operation of the digital commerce sector in Bangladesh, the Ministry of Commerce has issued the National Digital Commerce Policy, 2018, and the Digital Commerce Operation Guideline 2021.
The “National Digital Commerce Policy 2018” was formulated to promote, expand, and develop business through digital commerce. The main objective of this policy is to establish a digital trade system and create a local and international market using information and communication technology to transform businesses in the digitization process. The policy pledges to ensure safe digital transactions while restoring the trust of buyers and purchasers in digital commerce.
Meanwhile, the country has made significant progress in this regard. However, many challenges and obstacles are still visible. These challenges need to be overcome quickly to keep this potential sector moving. Key challenges need to be addressed to ensure skills development, ICT infrastructure and services, payment solutions, and easy access to finance. The concerned authorities of the government should strictly monitor the product delivery system and its security. Improving internet infrastructure, particularly in rural areas, can boost the digital commerce sector and engage more individuals. Also, awareness about using the digital platform should be increased. Developing digital literacy through training and capacity-building programs to ensure digital security and increasing human resources in the IT sector. Adequate and coordinated steps are urgently needed to ensure that the digital commerce sector in Bangladesh can enjoy sustainable growth in the years to come. Only then will the sector develop properly and employ many people.
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