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1Информатика. Экономика. Управление// Informatics. Economics. Management
2024; 3(4) http://oajiem.com/
УДК: 339.138:004.738.5(549.3) EDN: BPJXQU
DOI: https://doi.org/10.47813/2782-5280-2024-3 -4-0218-0240
E-commerce development in Bangladesh: marketing improvement based personalized recommendation service
Susmita Kundu1, Zahir Rayhan2, Omar Faruq1'3, Md. Asikur Rahman2, Krisna Rani
Debi4
1Management, Daffodil International University, Dhaka, Bangladesh 2Business Administration, Prime University, Dhaka, Bangladesh 3Electrical and Electronic Engineering, Bangladesh University of Engineering and
Technology, Dhaka, Bangladesh Management, Feni Government College, National University, Feni, Bangladesh
Abstract. E-commerce has profoundly changed the corporate environment, and companies now consider the internet a vital tool. Bangladeshi e-commerce is experiencing rapid growth, leading to a significant shift in the country's retail e-dealings. Along with a questionnaire-based survey to better understand online customer attitudes and purchase experiences, this study analyzes the Bangladeshi capabilities of electronic elements, including its history and present expansion. The study highlights challenges and potential growth areas for the e-commerce industry and offers suggestions for marketing initiatives for Bangladeshi online merchants. E-commerce is predicted to have an influence on people's social and professional lives in the future, with 62% of people utilizing the internet. Global online shopping for electronic commerce is anticipated to be worth USD 6.33 trillion, or 20.1%. Bangladesh ranks 36th internationally in terms of the largest eCommerce market, with projected eCommerce sales of USD 7,896 million by 2023. By 2028, earnings are estimated to exhibit an average yearly increase worth 22.3%, giving rise to an anticipated market value worth $17,647.3 million. With predicted 6.1% growth, the Bangladeshi eCommerce industry helped contribute to the 8.7% worldwide growth rate in 2023. The largest market in Bangladesh is for hobbies and leisure, then comes electronics, clothing, food, furniture, home goods, personal care products, and DIY. Even though it is still in its early stages, e-commerce has grown in Bangladesh thanks to the launch of websites like Daraz, Akhoni, and Ajkerdeal.
Keywords: e-Commerce, marketing improvement, consumer attitude, personal recommendation service, customer satisfactions.
Acknowledgements: We express our gratitude to RESIPO for providing the facilities and resources needed for this study. It was simpler to complete the study as intended with their help. We express our gratitude to our friends and colleagues for their encouragement, for fostering a lively academic environment, and for enabling us to work together on research projects.
For citation: Kundu, S., Rayhan, Z., Faruq, O., Rahman, M. A., & Debi, K. R. (2024). E-commerce development in Bangladesh: marketing improvement based personalized recommendation service. Informatics. Economics. Management, 3(4), 0218-0241. https://doi.org/10.47813/2782-5280-2024-3-4-0218-0240
© S. Kundu, Z. Rayhan, O. Faruq, M.A. Rahman, K.R. Debi, 2024
0218
Развитие электронной коммерции в Бангладеш: персонализированная служба рекомендаций, основанная
на улучшении маркетинга
Сусмита Кунду1, Захир Райхан2, Омар Фарук1'3, Мд. Асикур Рахман2, Кришна
Рани Деби4
1 Менеджмент, Международный университет Даффодил, Дакка, Бангладеш
2Деловое администрирование, Университет Прайм, Дакка, Бангладеш 3Электротехника и электроника, Бангладешский университет инженерии и
технологий, Дакка, Бангладеш Менеджмент, Государственный колледж Фени, Национальный университет, Фени,
Бангладеш
Аннотация. Электронная коммерция глубоко изменила корпоративную среду, и теперь компании считают Интернет жизненно важным инструментом. Электронная коммерция Бангладеш переживает быстрый рост, что приводит к значительному сдвигу в розничной электронной торговле страны. Наряду с опросом на основе анкетирования для лучшего понимания отношения онлайн-клиентов и опыта покупок, это исследование анализирует возможности электронных элементов Бангладеш, включая ее историю и нынешнее расширение. Исследование подчеркивает проблемы и потенциальные области роста для индустрии электронной коммерции и предлагает предложения по маркетинговым инициативам для онлайн -торговцев Бангладеш. Прогнозируется, что электронная коммерция окажет влияние на социальную и профессиональную жизнь людей в будущем, при этом 62% людей будут использовать Интернет. Ожидается, что глобальные онлайн -покупки для электронной коммерции составят 6,33 триллиона долларов США, или 20,1%. Бангладеш занимает 36 -е место в мире по величине рынка электронной коммерции, прогнозируемый объем продаж в сфере электронной коммерции составит 7 896 млн долларов США к 2023 году. К 2028 году ожидается, что доходы будут ежегодно увеличиваться в среднем на 22,3%, что приведет к ожидаемой рыночной стоимости в 17 647,3 млн долларов США. С прогнозируемым ростом в 6,1% индустрия электронной коммерции Бангладеш способствовала общемировому росту в 8,7% в 2023 году. Крупнейшим рынком в Бангладеш являются хобби и досуг, затем следуют электроника, одежда, продукты питания, мебель, товары для дома, средства личной гигиены и DIY. Несмотря на то, что она все еще находится на ранних стадиях, электронная коммерция в Бангладеш выросла благодаря запуску таких веб-сайтов, как Daraz, Akhoni и Ajkerdeal.
Ключевые слова: электронная коммерция, совершенствование маркетинга, отношение потребителей, персонализированный рекомендательный сервис, удовлетворенность клиентов.
Благодарности: выражаем благодарность RESIPO за предоставление оборудования и ресурсов, необходимых для проведения данного исследования. Их поддержка значительно облегчила выполнение исследования в соответствии с намеченным планом. Мы также благодарны нашим друзьям и коллегам за их поддержку, создание активной академической среды и возможность совместной работы над исследовательскими проектами.
Для цитирования: Kundu, S., Rayhan, Z., Faruq, O., Rahman, M. A., & Debi, K. R. (2024). Ecommerce development in Bangladesh: marketing improvement based personalized recommendation service. Informatics. Economics. Management, 3(4), 0218-0241. https://doi.org/10.47813/2782-5280-2024-3-4-0218-0240
INTRODUCTION
E-commerce has profoundly altered the corporate environment, as 62% of people globally use the internet. By 2023, the worldwide e-commerce market is projected to be worth USD 6.3 trillion, or 21.2% of all retail sales.
By 2024, Bangladesh is expected to surpass Czechia and become the 32nd biggest market in terms of eCommerce sales with an anticipated volume of USD 15,411.2 million. With a predicted 6.1% growth, the Bangladeshi eCommerce industry helped to contribute to the 8.7% worldwide growth rate in 2023. Hobby and leisure is Bangladesh's largest market, accounting for 23.5% of eCommerce sales. In second place with 23.4% are electronics, followed by fashion (18.7%), groceries (7.8%), furniture & home ware (11.2%), care items (7.9%), and DIY (7.4%). Though still in its infancy, e-commerce in Bangladesh had its start in the late 1990s when a small number of foreigners mailed books and gifts to family members in Dhaka [1, 2]. Customers mostly in Dhaka expressed gratitude for the establishment of two e-commerce sites, Akhoni and Ajkerdeal, in 2012 and 2013, which contributed to the situation's turnaround. In Bangladesh e-commerce would keep expanding, supporting both the rate of global expansion and the emergence of business models such B2B, B2C, C2C, and C2B [3, 4].
Electronic commerce has transformed business, with the introduction of internet technology enabling a global change. With 52% of the world's population accessing the internet, ecommerce is predicted to have a huge influence on business and society. This business idea is applicable to all business types, such as B2B, B2C, C2C, and C2B. According to eMarketer, the amount of money sold online in the world in 2020 was 3. 1 trillion USD, and by 2023, it will have topped 6.17 trillion USD. The expansion of e-commerce is projected to continue, affecting both corporate and consumer lives globally [5, 6]. The number of websites/online retailers, as well as the online customers in Bangladesh, is rapidly increasing. By our investigation, Bangladeshi consumers have good sentiments of e-shopping while also expressing concerns of security [7]. To attract more consumers, they should increase their marketing efforts and devise a consumer-focused approach [8].
E-commerce in Bangladesh has been in its developing phase since the late 1990s, with a short number of foreigners using e-Market. However, growth in the industry began in 20122013 when e-commerce sites AJKERDEAL as well as AKHONI presented actually to internet users, attracting business entrepreneurs from both Bangladesh and abroad. Foreign investors
like Olx, daraz, and Kaymu joined the competition, while local businesses like Bikroy.com and Rokomari.com have also entered the market [9].
The grocery and FMCG industries have also joined the e-commerce space, as seen by websites like chaldal.com, pickaboo.com, and othoba.com that represent their respective industries. Prominent business associations and conglomerates have shown interest in trading electronically. Customers have responded well to online meal delivery services as well; two reputed e-commerce platforms in Bangladesh are HungryNaki and Food Panda. All things considered, Bangladesh's e-commerce market is expanding and serves both domestic and foreign customers. Online shopping is becoming more and more popular, and there are more people using the internet, which bodes well for the expansion of online shopping in Bangladesh [10]. Due to social and cultural differences, the enduring appeal of old business models, typical consumer habits, and customer expectations, e-commerce implementation It'll be different in Bangladesh from China, Europe, and the United States. [11].
By launching innovative online retail platforms, Daraz Bangladesh—a leader in the ecommerce sector—has completely transformed Bangladeshi consumers' purchasing patterns. The German investment company Rocket Internet founded Daraz Bangladesh in 2012, providing customers with a quick, safe, and easy way to purchase products online while offering a wide range of options. The business has operations in Bangladesh, Nepal, Pakistan, Myanmar and Sri Lanka. Alibaba Group—the biggest online retailer globally—purchased Daraz Group In 2018. The goal of Daraz Bangladesh is to grow with its vendors and give customers an enjoyable shopping experience. Daraz currently offers over 60 million alternatives and has over 4 million active users every day with operations in more than five countries. Personalization is at the core of its operation; modules including Most Popular, DarazMall, Global Collection, and others are tailored to each user's characteristics and choices [12].
The cornerstone of each e-commerce company in the world is tailored suggestions, which form the basis of the platform's marketing approach. The two elements of the Daraz campaign are the operator and the algorithm. Through e-commerce, clients can purchase services from vendors by utilizing a web browser and the internet.
For the delivery of products and services, this kind of electronic commerce has emerged as a competitive alternative to conventional brick-and-mortar approaches. Problems with the quality of administration might be the reason for the high inclination rate of online purchasing. The expansion of web-based enterprises is driven by the reduction of internet expenses. E-
commerce has become a competitive alternative to conventional brick-and-mortar methods for the delivery of products and services because to the quickly growing e-business [13].
This research will look into the impact of tailored recommendations for customer acquisition, taking into account Daraz Bangladesh's business approach and efforts to draw clients via online channels. After finishing the content department thesis, the researcher tried to learn as much as possible about Daraz Bangladesh's content management department and performed an online evaluation to find out what the clients wanted, thought, and were satisfied with.
LITERATURE REVIEW
The impact of modern technology on online grocery shopping is covered in the literature review, with particular attention paid to aspects such shifting customer behavior and purchasing patterns. Customers can simultaneously access and make decisions using digital technology, which is made possible by 21st-century innovation. Online grocery websites save walking and transportation time when shopping by providing convenience, ease of access, and special rates [14]. However, there are a number of obstacles that significantly lessen the significance of online grocery shopping, including delivery costs, leisure time, less enjoyment, internet unavailability, social contact, problems with online payment, and consumer safety and personal information [15, 16].
Businesses are constantly searching for fresh and inventive ways to give their customers an improved shopping experience. Making personalized product recommendations is one effective strategy. This comprehensive research will delve deeply into customized recommendations, elucidating their nature, how they differ from generic suggestions, the types that are available, and the reasons that e-commerce enterprises need them [17]. Online retailers use data from shoppers' interests, past purchases, and browsing habits to generate customized recommendations for them. Consumers are given distinct sets of machine learning recommendations, which enhance their browsing experience by offering relevant and engaging product choices. Few studies have been conducted on the subject of loyalty shift in the food industry from traditional to e-commerce. Traditional customers showed higher degrees of loyalty to online consumers, according to research by Rafiq and Fulford [18]. These movements differed depending on the industry share as a whole. In conclusion, suggestions and recommendations both aim to point clients in the direction of particular products; ideas do not utilize private customer information, but recommendations do. Suggestions don't offer the same
amount of insight into the particular requirements of each customer as recommendations do, even if they could be helpful for first-time visitors or in circumstances where individualized data isn't accessible. This increases the accuracy of product suggestions and ensures that customers receive personalized product ideas [19, 20].
This study aims to provide a comprehensive understanding of the history and current state of e-commerce in Bangladesh. We'll talk about how e-commerce has changed over time, its current state, infrastructure development, governmental regulations, and customer perception [21]. This study followed the architectural model and recommendation workflow, shown in figures 1 and 2.
Secondary data is the main basis of our investigation. The information and statistics were gathered from a variety of sources, including government publications, websites, blogs, newspapers, journals, and research papers. To get primary data regarding consumers' perceptions of e-commerce, we ran a brief poll. Two important cities where e-business has grown significantly are Dhaka and Chittagong. Thus, our survey is dispersed there, and information is gathered from nearby customers [22].
This study examines the data from surveys and reports. We also spoke about the several elements that significantly influence Bangladesh's e-commerce growth. Our goal is to support companies that wish to grow their e-business in Bangladesh. Give them a deeper comprehension of the obstacles, uniqueness, and growth of Bangladesh's e-commerce. To guarantee that they can implement the right approach while increasing e-commerce in Bangladesh, businesspeople must have a thorough awareness of e-consumer behavior, preferences, and expectations.
Bangladesh's economy is expanding steadily and is trending higher. Over the past ten years, there has been a noticeable development; the GDP grew significantly even throughout worldwide economical obstacles. Among of GDP growth 8%, it is the main economies developing at the quickest rate in the world. It attracted notice as well and became recognized as one of the top frontier markets for international investors. The International Monetary Fund (IMF) stated in 2016 that it constituted the nearly maximum significant financial institution globally [23].
METHODOLOGY
The growth of equipment
In the nation of Bangladesh, online shopping initially emerged in the latter years of the 1990s and the beginning 2000s. Even in the absence of facilities online access, and regulations, consumers were more grateful. During 2013, governments approved the use of credit cards overseas for online and retail sales of items and amenities [24]. Prior to that, large cities saw the rollout of WiMAX and 3G wireless internet service, this increased internet speed. That provided the internet business a significant boost in certain ways. Though not very large at first, the growth showed promise. The country's e-commerce transaction reached 3.79 billion TK in 2016, with the e-commerce business seeing a 68% rise of that year [25].
The two main things that contribute the expansion with online enterprises include the fastest internet connections and internet users. Bangladesh made significant progress across this region, in recent times. There were 131 million internet users in 2024 [26], with a 13.2% internet penetration rate. In 2017, there was a threefold growth in reaching 141.5 million, per year increasing 10 million with an 82.65% population rate [27]. As per the June 2018 figures released by the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of subscribers has climbed to 87.79 million, with a penetration rate of 52.97% [28].
Similarity
I Differences between A " and R '
Figure 1. Recommendation System Model (Opportunity to Recommendation).
Рисунок 1. Модель рекомендательной системы (от возможности к рекомендации).
For investors and e-commerce traders, the data appears to be highly encouraging and optimistic. Additionally, the research showed that among all users, mobile internet users account for the bulk of shares. As of right now, 82.02 million people have mobile internet subscriptions, 0.081 million have WiMAX subscriptions, and 5.685 million have ISP + PSTN connections. The BTRC website [28] is the data source for Figure 3 and 4, which displays the breakdown of internet customers. Bandwidth statistics shown in Table 1.
Mobile providers in Bangladesh started offering 4G internet service in February 2018 in the country's largest cities, and it later spread to all 64 districts [29]. The mobile service providers are modernizing their networks to offer continuous communication and internet services. The authorities have decided that in July of this year, 5G, the next-generation mobile device data network, would be tested; Huawei, a top telecom vendor, would assist with the test. Another piece of information revealed that the government plans to introduce fifth-generation wireless technology starting in 2020 [30].
Figure 2. Recommendation Architecture Model. Рисунок 2. Модель архитектуры рекомендательной системы.
As of the end of June 2018, 150.945 million people were active mobile phone users, according to further data figures from the BTRC. The growth of e-commerce is dependent on the increasing usage of mobile devices and the rise in Internet users. The government launched many projects to supply cutting edge Internet transfer infrastructure and high aptitude fiberoptic submarine cable capacity. According to BSCCL annual reports, the overall bandwidth capacity grew from 200 GBPS to 500 GBPS in 2016. Figure 5 shows us Bangladesh's present bandwidth capacity and usage situation. The information was taken from the BSCCL annual reports [31].
Internet users are listed as one of the leading indicators, along with the other three, in the UNCTAD study to assess the growth and development of e-commerce. According to a recent
survey, there were 10.87 million new SIM cards acquired in 2017, 40 million people actively daily surfing, and as of December, there were over 60 million regular 3G subscribers. 2021. According to the data, there was an average of 1909.6 crore taka in mobile transactions per day in July 2021, indicating that mobile transactions are becoming more and more popular with customers [32]. The entire scenario serves as a superb example of both the existing state of affairs and their potential future development.
60.00% 50.00%
40.00%
ш 30.00%
СП tó g 20.00%
4—1 л: z¡ s 10.00% S3
Рч 0.00%
nternet Users ■2016 "2017 "2018
Figure 3. Internet users and Penetration rate. Рисунок 3. Пользователи интернета и уровень проникновения.
Figure 4. Total Internet Subscribers. Рисунок 4. Общее количество интернет-подписчиков.
It is very profitable and appealing to potential investors. Alibaba's latest purchase, a massive Chinese internet company, has validated this notion. It has bought "Daraz," one of the top e-
commerce businesses in Bangladesh; nevertheless, the deal also involved four other Asian nations [33].
Table 1. Data Transfer Speed Usage and ability. Таблица 1. Скорость передачи данных, использование и возможности.
Business Performance The capacity and utilization level of bandwidth by the company is presented as follows:
Particulars 2023-22 2G22-21 2021-20 2020-19 2019-18
Equipped Capacity (Gbps) ЗЗ45* 3000 1,7GG 1,700 1,700
Utilization (Gbps) 2,496.48 1,992 849.17 849.17 849.17
Capacity Utilization (%) 74.61 66.4% 49.9 49.9 49.9
* Total System Capacity of BSCCL from SMW-4 and SMW-5 Submarine Cable is
1800 Gbps.
891.42
CRORE TAKA
BANGLADESH ICT&TELECOM
IN NUMBERS
OFTHE 8 75%
THETOTAL U,J/" POPULATION
CRORE ACTIVE 30 USER BY DEC 2017
ffiilET AH
EVERYDAY e ^
tlB< 4.0
11ЦР CRORE
ACTIVE INTERNET USERS EVERYDAY
145.106
MILLION MOBILE PHONE USERSTILL NOVEMBER
CRORE NEW SIM CARD USERS ADDED IN 2017 ALONE
Figure 5. Telecommunications and information and communication technologies in
Quantities.
Рисунок 5. Телекоммуникации и информационно-коммуникационные технологии в
количественных показателях.
Present business circumstance
Major Bangladeshi cities have seen a rise in the popularity of business to consumer. According to a research released by e-CAB, online buyers continued to be closely concentrated. 80% consumers originate from Dhaka, Gazipur, Chittagong, the three significant cities. Two additional cities that are exhibiting promising growth are Sylhet and Narayanganj. 700 of electronic commerce and almost 50,000 f-commerce are active businesses, according to another research [34]. Bangladesh is among the top 10 economies by the UNCTAD, E-Commerce Index
2016 based on the discrepancy between the expected and actual percentage of internet users making online purchases [35]. The e-commerce market is predicted to rise by 70% in 2017, reaching an estimated value of $110-115 million, compared to $65-70 million in 2016 according to New Age analysis. Despite this, e-commerce barely makes up 0.7% of the nation's overall retail industry [36]. The market is expanding quickly, and sales are rising dramatically. By 2024, Bangladesh is projected to generate US$7,895.7 million in sales, placing it 36th in the online shopping market and surpassing Norway.
Between 2024 and 2028, the market is expected to increase at a yearly rate of growth 22.3%, in an anticipated value of US$17,647.3 million. The lengthy delivery lead time is one of the main issues with Bangladeshi e-commerce. Upon noticing this, a few product delivery firms decided to take action they constructed their own warehouses for certain companies so they could ship goods faster. Businesses that deal with consumers directly are growing as well; a sizable portion of e-commerce websites engage in C2C e-commerce. The eBay business model is used on these websites. These internet markets are based on individual auctions. There have been several recent mergers in the C2C industry: Ekhanei.com acquired playeOLX, while Telenor Group acquired CellBazar [37].
Table 2. E-commerce Business list in Bangladesh. Таблица 2. Список предприятий электронной коммерции в Бангладеш.
Name Class of Enterprise Internet Access
Rokomari Business to Consumer rokomari.com
Daraz Business to Consumer daraz.com.bd
Ajker Deal Business to Consumer ajkerdeal.com
Evaly Business to Consumer evaly.com.bd
Chaldal Business to Consumer chaldal.com
Othoba Business to Consumer othoba.com
Pickaboo Business to Consumer pickaboo.com
Bagdoom Business to Consumer bagdoom.com
Clickbd Business to Consumer clickbd.com
Priyoshop Business to Consumer priyoshop.com
Meenabazar Business to Consumer meenaclick.com
Kiksha Business to Consumer kiksha.com
Sheba Business to Consumer sheba.xyz
Ghoori Cellbazaar Buysellbazar
Business to Consumer
Ghoori.com.bd cellbazaar.com
Business to Consumer
Business to Consumer
buysellbazar24.com
Kaymu Bikroy Ekhane
Business to Consumer
kaymu.com.bd bikroy.com ekhane.com addressbazar.com
Business to Consumer
Business to Consumer
Addressbazar Bizbangladesh Busytrade
Business to Consumer
Business to Consumer
bizbangladesh.com bangladesh.busytrade.com
Business to Consumer
Business-to-business refers to the paradigm in which an organization uses the internet to transact commerce and engage in other commercial activities with trade partners. Typically, B2B companies that offer supply-chain and manufacturing solutions. In addition to additional platforms that facilitate business-to-business transactions in Bangladesh, the Bangladesh Garment Manufacturers Employee Association (BGMEA) has established B2B online platforms for foreign RMG purchases and sourcing. Certain sites, including Bizbangladesh, Addressbazaar, and Bangladesh Trade Directory, provide trade agreements, business directories, and supplier information [38]. Table 2 contains the names and website information of several significant e-commerce businesses.
Building a supportive atmosphere for e-commerce requires two essential elements: internet security and trust. Strong legislative and legal frameworks are essential; they should allow for cooperation between various regulatory agencies, standardize the definitions of terms often used in e-commerce, and provide agreed-upon procedures for contracts, financing, and dispute resolution. The Ministry of Commerce as well as e-CAB has been working together for a number of years to define national rules and policy for digital commerce. They organized more than thirty seminars to create online shopping and domestically entrepreneur-friendly legislation. The much-awaited National Electronic Commerce Strategy was just approved by the authorities. The governmental entity has released three key guidelines for policy.
• It forbids foreign investors form controlling over 49% percent all online retailers operating in Bangladesh.
Framework of Law and Policies
• Online retailers are required to provide every detail concerning the goods that sell online, such as their specifications and their refund procedure.
• According to the policy, e-traders must enter into agreements with product suppliers, distribution offerings, as well as payment platforms, to ensure clients' rights are appropriately protected.
The announcement greatly relieved internet retailers and is expected to increase online sales and digital commerce in the nation. E-commerce dealers and businesspeople welcomed the new legislation, believing it would benefit local businesses.
Online Payment
Payment options for products bought online may frequently be made both online and offline. There are several methods available for payment. Payment methods vary from nation to nation and depend on factors such as national financial laws, credit risk, vendor tactics, and customer preferences. Selecting a single payment option to gauge the preparedness of e-commerce payments is quite difficult. Visa and MasterCard are the most often utilized forms of payment worldwide if related with the purchasing value of online orders. [39].
■ Cash on Delivery ■ MFS ■ Credit/Debit Card
Figure 6. Method of Electronic Payment for Purchases. Рисунок 6. Способ электронной оплаты покупок.
Consumers across Bangladesh remain reluctant to use digital wallets or e-payment systems. A research study released in 2015 by Bangladeshi online retailer Kaymu. The payment upon delivery of goods is the major way of payment used in 95% of online purchase transactions in
Bangladesh, according to their survey. Merely 1% of participants employed credit cards, while around 2% made use of banking channels, 2% employed bKash, Nagad, Rocket, Upay, Cellfin or other mobile payment methods [40]. "Cash before delivery" is still the primary payment option, despite recent small improvements. 65% of payments were made without cash on delivery, 25% via MFS, and 10% through credit or debit cards, according to the most recent statistics. Figure 6 shows the present payments situation.
The central bank licensed a business named "iPay" earlier this year to handle internet purchases and money exchanges through people, showing that authorities want to improve the system for payments. The firm will function in the nation similarly to Paypal. Another fintech business requested government clearance [41]. The new technology is taken some customers to become accustomed to it. Analysts and decision-makers, nevertheless, are optimistic that it will have a similar reaction to MFS. This will usher in a new age for mobile payment systems if it gains traction.
RESULTS AND DISCUSSION
Bangladesh is already entering the population dividend period, according to new research. It indicates that within the next 25 years, the proportion of young people will be at its greatest. Bangladesh has 168 million people living there, of whom 65% are under 35. It not only makes the nation the youngest in the globe but also among the largest (8th in terms of population). Bangladesh has a fantastic opportunity to take use of e-commerce potential by creating an atmosphere that is conducive to business. It will undoubtedly alter the nation's economic situation. Goldman Sachs conducted research and identified Bangladesh's e-commerce potential. It was classified as one of the "Next Eleven," a collection of nations with the capacity and necessary conditions to emerge as major actors in the global economy in the twenty-first century. The perfect target market for e-commerce operations is the growing middle class with more discretionary money and increased urbanization.
There hasn't been much study done to far on how Bangladeshi customers view online shopping. Research revealed that young professionals and students make up the bulk of ecommerce shoppers. Additionally, he notes that the Bangladeshi economy is dispersed among villages and small cities with adequate internet access, in addition to Dhaka and Chittagong [42]. It was shown that people in the 20-35 age range are more interested in internet buying. According to his survey results, 66% of his participants have previously made an online purchase [43]. It was shown that people choose internet buying since it is more convenient and
takes less time. Additionally, they looked at the connection between internet purchasing preference and family structure.
We carried out a questionnaire-based poll to find out how Bangladeshi consumers see online buying and e-commerce. The majority of the traffic originates from Dhaka and Chittagong, two significant cities from where our data was gathered. We issued 400 questionnaires in total to customers, but we have only got 255 of them. Five surveys with incomplete or erroneous answers were eliminated from the study. With 250 responders in all, the majority are between the ages of 18 and 24 (88%), with 174 men and 76 women. The respondents' demographics are shown in Figures 7 and 8.
The survey had eight items, with A scale based on five points, from 1 to 5, strongly agree to strongly disagree. According to our research, 61% of respondents regularly purchase online, and the majority of them are happy with their prior online shopping experiences. Online purchasing is convenient, according to 69.9% of respondents, and beneficial, according to 53.7%. Additionally, 82.8% of respondents indicated that they feel at ease making purchases online, indicating that customers love shopping online. Remarkably, just 45.2% of respondents stated that they would rather purchase online than through a traditional channel in the future, despite the fact that all of the statistics are quite positive.
Figure 7. Responses' age. Рисунок 7. Возраст респондентов.
Figure 8. Responders' gender. Рисунок 8. Пол респондентов.
Past buying experiences heavily influence what to buy next. Online purchasing saves time and offers hassle-free shopping. It makes it easier to access a large variety of things. They find
it handy to browse the virtual store and select the items they want. Compared to going to traditional brick and mortar stores, it is far more comfortable. Consequently, the main business approach needs to be establishing a long-term relationship with the consumer and operating transparently. Excellent services may ensure that the customer is happy and satisfied with their purchase. In order to address all questions and concerns, a quick and simple interactive customer support system should be in place. Building a relationship with clients will need good manners and habits.
RESEARCH CHALLENGES
Bangladesh's e-commerce is expanding, as is the size of the market. On the other hand, certain barriers are impeding the expansion of the industry and making it difficult for business owners to manage their operations. Inadequate systems for logistics and transportation prevent e-commerce merchants from growing their businesses. This has a direct impact on delivery services since national roads and highways do not yet meet international standards that would enable quicker delivery. In the metropolis, slow traffic also makes it difficult for goods to be delivered quickly.
In the lack of official policies, many forums and management organizations mislead traders about marketing, planning, and business models. A significant knowledge gap between consumers and enterprises resulted from a lack of legislation. The government has just passed the e-commerce law and it needs to be put into effect right now. That will eliminate all misunderstandings and provide a welcoming atmosphere for everybody. Local business owners face funding shortages and struggle with managing finances. Since e-commerce is still in its early stages of development, investors are unsure about how quickly it will expand. Reliable payment methods: Since Bangladeshi e-commerce hasn't yet gained the "Trust" of customer; more than 90% of payments are done at the time of delivery. The only way to solve this problem is to implement strict policies and a dependable, secure payment mechanism. Another problem is Bangladesh's inadequate and insufficient credit and debit card user base. Bangladesh Bank has a significant in this; they have to urge both public and private banks to take the lead in promoting card usage among consumers and reducing the TXN cost associated with credit and debit cards. The electronic payment system at the beginning of this year would undoubtedly facilitate online customers.
Nowadays, online shopping platform Facebook is an f-commerce platform's quiet rival. Thousands of small company owners use social media, particularly Facebook, to manage their
operations. Both technology and consumer purchasing patterns are evolving quickly. Consumers use their phones more often than laptops or desktop PCs these days. Thus, business owners must recognize customer preferences and adjust their strategies accordingly. Due to ignorance, Bangladeshi customers and businesses do not yet completely appreciate the advantages of e-commerce. Here, BASIS, e-CAB, and the ICT ministry are all very important. To launch countrywide promotion efforts, they must hire additional e-commerce professionals with expertise and experience. They can succeed in this if they work together.
Bangladesh's e-commerce market is still relatively new and developing. We have discussed the features of Bangladeshi e-commerce in this essay, as well as its historical and contemporary growth. From the standpoint of e-commerce businesses, this is great news for traders, customers, and the government. These two companies have already made a name for themselves as leaders in the world of business; local e-commerce merchants will greatly benefit from their investment and experience. It would undoubtedly attract additional international businesses to Bangladesh to make investments in the e-commerce sector. In this essay, we have highlighted several weaknesses in the existing e-commerce sector. As a result, authorities should immediately direct their attention towards these issues and move quickly to address them. In addition, they have to offer fair and healthy investment conditions to both international and local investors. Global consumer data privacy has grown in importance recently. Our research revealed that merchants and customers alike are ignorant about the entire business system. Therefore, the government must take the lead in ensuring the security of customer data and provide the required resources to educate the public about e-commerce.
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ИНФОРМАЦИЯ ОБ АВТОРАХ / INFORMATION ABOUT THE AUTHORS
Susmita Kundu is currently pursuing a Master's degree in Management from Daffodil International University, Dhaka, Bangladesh. She received her bachelor's degree in management from Monirampur College, National University, Jessore, Bangladesh. Her research focuses on e-commerce, particularly analyzing user experiences with personalized recommendation services on eCommerce platforms. Her current thesis explores the intricacies of these services and their impact on user satisfaction and engagement.
Сусмита Кунду в настоящее время получает степень магистра в области менеджмента в Международном университете Даффодил, Дакка, Бангладеш. Она получила степень бакалавра в области менеджмента в колледже Монирампур Национального университета, Джессор, Бангладеш. Ее исследования сосредоточены на электронной коммерции, в частности, на анализе пользовательского опыта с персонализированными рекомендательными сервисами на платформах электронной коммерции. Ее текущая диссертация исследует особенности этих сервисов и их влияние на удовлетворенность и вовлеченность пользователей.
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Zahir Rayhan, done his Masters of Business Administration (MBA) in International Marketing at Prime University, Dhaka, Bangladesh. As a senior sales manager at Apple Bangladesh Ltd. He received his Bachelor of Business Administration (BBA) at Prime University, Dhaka, Bangladesh. He is the Chief Executive Officer (CEO) of the RESIPO Research Organization in Bangladesh. He has more than 10 publications. He is engaged in research on business management, marketing, e-commerce, promotional marketing, HRM, economics, banking systems, project management, etc.
Захир Райхан получил степень магистра делового администрирования (MBA) по международному маркетингу в Университете Прайм, Дакка, Бангладеш. Он работает старшим менеджером по продажам в Apple Bangladesh Ltd. Степень бакалавра делового администрирования (BBA) он получил также в Университете Прайм, Дакка, Бангладеш. Захир является генеральным директором (CEO) исследовательской организации RESIPO в Бангладеш. Он автор более 10 публикаций. Его исследовательские интересы включают управление бизнесом, маркетинг, электронную коммерцию, промо-маркетинг, управление человеческими ресурсами, экономику, банковские системы, управление проектами и другие смежные области.
Omar Faruq, Research Associate in EEE, Bangladesh University of Engineering and Technology, Bangladesh (BUET). Also, he is an Assistant Professor of CSE at BIST, Bangladesh. He studied Ph.D. in EEE, BUET. He received his Post-Graduate research degree from the SCIE, Chongqing University of Posts and Telecommunications, China. He is the Founder Chairman of RESIPO. He has more than 50 research publications. He engaged in research on free-space communications, Digital Business, optical communication, wireless communication, image and signal processing, ML, DL, AI, digital business intentions, biomedical, bioinformatics, etc. He is trying to develop long-distance wireless communication with top speed and noiselessness.
Омар Фарук, научный сотрудник кафедры электротехники и электроники Бангладешского университета инженерии и технологий (BUET). Также он является доцентом кафедры компьютерных наук и инженерии в BIST, Бангладеш. Получил степень PhD в области электротехники и электроники в BUET. Имеет последипломную исследовательскую степень от SCIE Чунцинского университета почты и телекоммуникаций, Китай. Является основателем и председателем RESIPO. Автор более 50 научных публикаций. Занимается исследованиями в области беспроводной связи в свободном пространстве, цифрового бизнеса, оптической связи, беспроводной связи, обработки изображений и сигналов, машинного обучения, глубокого обучения, искусственного интеллекта, цифровых бизнес-намерений, биомедицины, биоинформатики и др. Работает над развитием беспроводной связи на дальние расстояния с высокой скоростью и отсутствием помех.
Md. Asikur Rahman graduated from Prime University with a degree in Bachelor of Business Administration (BBA). Human resource management (HRM) is his greatest field of focus. His field of research interest at the departments of business management include human resource management, marketing, and supply chain management. Besides, he is working as a customer service professional in the booming banking sector in Bangladesh.
Мд. Асикур Рахман окончил Университет Прайм со степенью бакалавра делового администрирования (BBA). Управление человеческими ресурсами (HRM) является его основной областью специализации. Его научные интересы охватывают сферы управления бизнесом, управления человеческими ресурсами, маркетинга и управления цепочками поставок. Кроме того, он работает специалистом по обслуживанию клиентов в активно развивающемся банковском секторе Бангладеш.
Krisna Rani Debi, Master of Management, Feni Government College, National University, Bangladesh. She also received her bachelor's degree in management from Monirampur College, National University, Jessore, Bangladesh. Her research focuses on E-commerce, particularly analyzing user experiences with personalized recommendation services on eCommerce platforms. His current thesis explores the intricacies of these services and their impact on user satisfaction and engagement.
Кришна Рани Деби, магистр менеджмента, Государственный колледж Фени, Национальный университет, Бангладеш. Она также получила степень бакалавра по менеджменту в колледже Монирампур, Национальный университет, Джессор, Бангладеш. Ее исследования сосредоточены на электронной коммерции, в частности, на анализе пользовательского опыта с персонализированными рекомендательными сервисами на платформах электронной коммерции. Ее текущая диссертация исследует особенности этих сервисов и их влияние на удовлетворенность и вовлеченность пользователей.
Статья поступила в редакцию 14.10.2024; одобрена после рецензирования 13.11.2024; принята
к публикации 14.11.2024.
The article was submitted 14.10.2024; approved after reviewing 13.11.2024; accepted for publication
14.11.2024.
