E Commerce Failure in Bangladesh
What are the basic reasons behind the failure of e-commerce in Bangladesh?
E-commerce or electronic commerce, is the process of buying and selling goods over the Internet. Other than buying and selling, many people use Internet as a source of information to compare prices or look at the latest products on offer before making a purchase online or at a traditional store. E- business is sometimes used as another term for the same process. More often, though, it is used to define a broader process of how the Internet is changing the way companies do business, of the way they relate to their customers and suppliers, and of the way they think about such functions as marketing and logistics.
E-commerce business model
A business model, that aims to use and leverage the unique qualities of the Internet and the World Wide Web. E-Commerce business models integrate the internet, digital communications and IT applications that enable the process of buying and selling. E-commerce business models are
1. B2C (Business to Consumer)
2. B2B (Business to Business)
Business to Consumer: 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.
Business to Business: 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
E-commerce or electronic commerce, is the process of buying and selling goods over the Internet. Other than buying and selling, many people use Internet as a source of information to compare prices or look at the latest products on offer before making a purchase online or at a traditional store. E- business is sometimes used as another term for the same process. More often, though, it is used to define a broader process of how the Internet is changing the way companies do business, of the way they relate to their customers and suppliers, and of the way they think about such functions as marketing and logistics.
E-commerce business model
A business model, that aims to use and leverage the unique qualities of the Internet and the World Wide Web. E-Commerce business models integrate the internet, digital communications and IT applications that enable the process of buying and selling. E-commerce business models are
1. B2C (Business to Consumer)
2. B2B (Business to Business)
Business to Consumer: 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.
Business to Business: 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
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