Parentless Bangladeshi eCommerce Industry need a flow

eCommerce is a growing industry now a days in Bangladesh. Since 2012, it is growing faster than our inter-divisional train. This sector created a lot of self-dependents like entrepreneurs and also created a great source of jobs for jobless. Because of this industry some other industries like Digital Marketing and Delivery systems also gained a lot of flow. But beside this all, it also created a lot of hype in this industry.

Last year 2015, we have seen that How much eCommerce website offers can affect to our daily life. Some big eCommerce introduced international quality events in Bangladesh. Like, Rocket Internet GmBh venture Kaymu.com.bd came up with an event named “Black Friday”, Daraz.com.bd came up with an event named “FATAFATI FRIDAY” and Branoo.com came up with an event named “Year End Dhamaka”. They all together received millions of hits and tons of orders. Kaymu got 3000+ orders in a day, Daraz got 12,000+ Orders, Branoo received 1,000+ Orders during this event. So obviously it shows that it is a small thing anymore. Chaldal.com, foodpanda.com.bd, hungrynaki.com also doing good business.

But the main fact is, some eCommerce websites are coming to this marketing to ruin this industry. They are creating hype and it is causing "Cancer" for other eCommerce companies. There is more than 5,000 Online shopping businesses are available currently in Bangladesh. Around 1,000 have their own websites and other do not have any sort of websites but they are selling through Facebook only! And it’s number is around 4,000! So where is the actual problem happening? Let’s find out:

1. 80% of them do not have their own address.
2. 90% of them do not have a local trade license.
3. 90% of them do not pay regular tax.
4. 30% of them are involved in fraudulence.
5. 50% of them are selling products over priced even sometimes its 10x.
6. 40% of them do not even know how to communicate with customers.
7. 70% of Facebook based businesses keeps their customers information in public post.
8. 20% of Facebook based businesses gives threats to customers.
9. 30% of them getting fake orders
10. 60% of them selling products without checking its quality.
11. 60% of them have same products with 1x-3x price.
12. 90% of the website based eCommerce do not have any UI/UX related knowledge.
13. 60% of them do not have any knowledge about Product Photography.
14. 95% of them do not have their own any Refund Policy.
15. 95% of them do not have their own Terms of Conditions.
16. 65% of them uses their own delivery channels.

Source - Bangladesh Online Stores Community (BOSC)​, FITPLY Media​ & Mahabubur Rahaman​

The main fact is, in Bangladesh there are several IT communities like Bangladesh Computer Samity, Bangladesh Computer Council, Bangladesh Association of Software and Information System (BASIS) & also there is a separate association eCommerce Association of Bangladesh (eCAB). Where eCAB is dedicated association for eCommerce in Bangladesh beside this BASIS has there own eCommerce Alliance. But the fact is both of them are failed to gather 20% member of this industry. It is not their failure actually, it is only because lack of awareness creation.

A group is creating hype -  Here association is creating hype. First time ever we have seen how a group is being liable for destroying whole industry by creating hype. These people are destroying this industry directly. Even we haven’t seen any special approach from them during Facebook Shutdown in Bangladesh last year. 99% of our eCommerce business are depending on Facebook. During that time they just published a normal “Press Release”. Sorry to say but during that time when people couldn’t cook food for them, this group were busy in organizing a group picnic. They even don’t know how much this industry suffered at that time. In the name of creating a lot of entrepreneurs, they are promoting a lot of business who do not even done a small market research about their product line. Same product but prices are different in every single business pages. And it is price raising commodities.

In my previous post "Quick primer on ecommerce growth in Bangladesh (Infographic)​" I showed you all the current scenario of Bangladesh eCommerce industry. But why we are still stuck in the same place? Let’s find it out:

Legalization & Funding - A high number of businesses do not have any own office location, no legal papers like trade licence, TIN and Bank accounts. eCommerce is still not added as a sector in the trade licence. Even the bank is not interested to provide any loan. Angel Investor is the only choice. Some got supports from VC's only a few.

Easy to start - Doing business now in online is very much easier. Facebook recently introduced several things like Facebook for business is really helping new businesses.​ Even if you are doing good in the market and if people are talking about you much on Facebook or you are reaching a lot of number people on Facebook, then Facebook is giving you a chance of verifying your Facebook Local Business. And Facebook will give you a “Grey Badge”.​

In here facebook shops are increasing day by day. Nothing you will have to do. Just post the product name or code and your contact details. someone will call you to confirm and day after that day product will be in your door. Now-a-days facebook based fCommerce are smarter than original website eCommerce. Cause it is now a trend here. Online shopping is popular in here only because of the sellers who started selling via facebook from the beginning. Facebook made everything easy. In here social media marketing means only Facebook ads, post sharing and post boosting.

Client satisfaction - Retailers are afraid of submitting info's. They are interested to order via Facebook messages but not online via websites. Most astonishing news is, large number sales are done by women's but it's not showing because they buying from their father, brother or friends account who is male. They do not want to share their personal information. Most of the businesses do not have any return or refund policy and also their own terms & conditions.

Home delivery is easy - Product delivery is really easier now. eCourier.com.bd is doing great in here Bangladesh. Sonar Courier, Five star and many more are doing great right now. Even some frauds are also detected in this shipping business also. A lot of people do ships their products by their own channels.

A easy way to make payments - Opening m-wallet is much easier than getting a card. Cash on delivery (COD) is the first choice. And the next option is bKash. Basically, bKash is the mostly used payment method in Bangladesh after Cash on Delivery (COD). It is a Mobile Wallet. Currently, it is the largest and fastest growing mobile wallet around the world. It is an m-Commerce Service. After cash on delivery, it’s at top cause you can pay anytime via bkash from any mobile phone. Even its not an iOS or android apps. It’s just USSD method. bkash.com is there website.

What our senior citizens think - And about the age, yes now-a-days young people are so much interested in this sector. Till now they are the life. Cause still now our elder people and senior citizens think that Online Buying is just a dream nothing else even without trying for once. A straight answer about Online shopping for them is “Its Nothing except Fraud!” But the industry is growing.

That is the reason they are so much aware about payment methods. In here, people fears about online money transactions. They still think it’s not safe. Even the percentage that is showing 10%, 60% of this 10% (if 10% = 100%) are only used for mobile phone recharge!

I just want to say, this industry needs more exposure, more support. And this is important for those who came to this industry to go for a long run. As a positive thinker, I must say that some are trying. They need chances. They are bringing some international theme in local version and local suppliers and brands are also helping them. We just want to see a large eCommerce community in future who will challenge each other with their tremendous customer care support during and after those specific, significant and signature days, with their high-quality products and service also. Now the question is, “Is it a big dream for us? or I am expecting it too early?”