Roni Bhowmik, Int. J. Eco. Res.

, 2012v3i5, 77-91 ISSN: 2229-6158

THE PRESENT E-COMMERCE SITUATION IN BANGLADESH FOR

B2C E-COMMERCE
Roni Bhowmik, MSc. International Business (2012), Shenyang Aerospace University,
Shenyang, China. ,701, (7th floor), Friendship villa, Shenyang Aerospace University,
Daoyi, Shenyang, Liaoning, China.
E-mail : roni2024@yahoo.com

Abstract
Internet has opened up a new possibility for trade and commerce, which is electronic
commerce. E-commerce involves the use of the Internet in the advertising, identification,
payment and supply of goods and services. It applies the opportunity for “boundary crossing”
as new entrants, business models, and changes in Technology erode the roadblocks that
victimized to individual one industry from other. In developing countries, big companies also
micro and medium enterprises like have adopted e-commerce business process. In order to
utilize the opportunities in developing the economy Bangladesh government has also initiated
many programmes and provides different facilities to promote the adoption of the technology
in various sectors. In that starry-eyed catch B2C e-commerce promises a basic shift in the
way in which global buyers and sellers trade with each other. The paper looks at the B2C
electronic commerce future in Bangladesh analysis in country present conditions.
Keywords: E-Commerce, B2C, Main Legal Issues, Government Achievements.

Introduction:

With the improvement of livelihood criteria and fast pace of living, consumers’ shopping
behaviour has shifted greatly. E-commerce played by the network economy is switching the
way people live. Nowadays, progressively consumers are addressing go shopping on the web.
Although Internet B2C e-commerce is still in the opening level, to assess of this market is
expected to increase.
On the other hand, The People’s Republic of Bangladesh is a developing country in South
Asia. It's an over populated country in the global village, with about 164.4 million people
living in small physical size, social homogeneousness, forward-looking infrastructure and
banking, the logistics, communications, and payment costs linked with ordinary and Internet-
based shopping tend to downstairs and similar. So there has an outstanding opportunity to
business. Already banking sector in Bangladesh introduced afresh era with the start of
internet payment system entered by the nation central bank. It helps fund transfers and
payment of public utility bills on the internet. The Modern act permits people to apply local
currency credit cards for online proceedings within the country. E-commerce is shifting the
way people do business. By large corporations to small industries, businesses are operating
online, opening their products and service offers to young groups of people in the world.
At the closing of 2008 almost 1,596 million people or 23.8 % of overall populations of the
global had access to the Internet. These present a growth of 342.2% across the year 2000.
Asian countries news report for 474.9 % increase, it has overall internet user stands at 657
million or 41.2% of worlds full internet user, although balance of the world developed by
almost 280.7 % in as is period (The Internet Coaching Library 2009). Only in China more
than 420 million people are use the internet (Internet Usage and Population Statistics 2010).
The internet population style of Bangladesh is too contributing to the development of Asian
countries which assured 450% development in the period of 2000-2007. Establishing the
internet procedure in 1993, although still stays on in its primary level; Bangladesh has

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launched high-velocity internet connectivity through submarine superhighway in 2005. Inch

the latest two years, in People's Republic of Bangladesh, the figure of internet users has
expanded to from 3.2 percent to 12 percent. It's carried that, by 2020, at that place will be an
extra 2.6 percent increase of GDP as a consequence of using high-speed internet. Also, 4 lakh
Modern businesses and 1.29 lakh new employment chances will be generated. Another
commitment of the political Government is to extend coverage of broadband network to 30
percent by 2015 and 40 percent by 2021. GDP will growth by another 1.38 percent if
broadband penetration is expanded by 10 percent. So to utilise ICT potentials in the
economical developing Bangladesh government has announced information technology as a
thirst sector of the country and launched country’s vision to build digital Bangladesh by
2021. The political government has also realized some changes in the national ICT policy
1999 which reiterates establishing ecommerce by 2012 and e-governance 2014.
The three scopes of e-commerce are B2C (Business-to-Consumers), B2B (Business-to-
Business) and B2G (Business-to-Government). B2C e-commerce is unlikely to be of greatly
use in the near future in Bangladesh because of low of each person income, a strong
infrastructural and legal environment, lack of trust between business and consumers.
Business-to-Consumers e-commerce is potential in Bangladesh, but on a narrow scale at this
time. The country general people are leading customer of goods and services from this sector.
Business-to-Consumers for cross bound trade is also limited by the factors advised for the
domestic movement. Additionally, non-availability of international credit cards, foreign
currency remittance restrictions, delays and informal payments at customs duty clearance
even for small rate and amount items will discourage Business-to-Consumers.
Objective of the Study:

E-commerce has been shaking and shaping the business environment and breaking out new
ways of doing business. Thus it has become imperative to analyze the future prospectus,
which will actively govern the implementation of e-commerce in Bangladesh. Thus the
objectives of the study are to B2C E-commerce:
 Analyze the present status of e-commerce in Bangladesh,
 Suggest any improvement as required for B2C E-commerce.

Methodology:

The study is based primarily on secondary information. For this purpose, different recognized
census, government rules, regulations, policies, and laws, newspapers, national and
international journals, periodicals have been consulted. Besides this, internet has been used as
another source of information.
Objectives Methods

Secondary Data: government policies, laws &

Present situation Assessment
legislations, different articles, journals, and internet.

Concept of E-commerce:
Electronic commerce or e-commerce, is the buying and selling of goods and services on 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

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a traditional store. E-Commerce 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. For the purpose of this
study e-commerce is taken to mean doing business electronically. (Lindsay P., 2002)
Other terms that are often used when talking about e-commerce are B2B and B2C, shorthand
for business-to-business, where companies do business with each other, and business-to
consumer, where companies do business with consumers using the internet. These are
considered to be main forms of e-commerce.
The term commerce is viewed as transactions conducted between business partners.
Electronic commerce is an emerging concept that describes the process of buying and selling
or exchanging of products, services and information via computer networks including
internet. E-Commerce is generally used to cover the marketing, sales, distribution, and
delivery of goods and services by electronic means.
The business organizations conduct the transactions with its trading partners which are
usually business and/or customers. Business to Business (B2B) and Business to Consumer
(B2C) are the usual commercial transactions, though there is increasing use of this business
process in Government today. The categories are-

Government Business Consumer

Government G2G (Coordination) G2B (Information) G2C (Information)

Business B2G (Procurement) B2B (E-commerce) B2C (E-commerce)

Consumer C2G (Taxation) C2B (Price C2C (Auction)

comparison)

What is B2C?
A Word Definition from the Webopedia Computer Dictionary: Short for business-to-
consumer, the exchange of services, information and/or products from a business to a
consumer, as opposed to between one business and another.
Dealing conducted terminated by online between a business and a consumer. E.g. an online
publishing house may sell a DVD to a customer, transport it to him/her, and receive payment,
altogether without ever contacting the customer. Really having a hard time getting a book or
DVD? Prefer to buy a custom, update version computer system? How approximately a 1st
class, all-inclusive visit a tropical island? On the advent e-commerce, all things may be
purchased virtually in minutes without human interaction. Business to Customer e-commerce
first became shared in the 1990s with the popularization of the online.
While the term and condition e-commerce refers to all online dealings, as like business to
consumer, its implements to any business organisation that sells its products and services to
consumers by the Internet for its own usage. Also online retailers, business to consumer has
grown to include services such online banking, travel services, online auctions, health
information, purchase book, CD, DVD and real estate sites also available.

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Law for E-commerce:

On the open of the Modern technologies, new challenges are arising. One of them relates to
the legal allegations of e-commerce. Apply of options to the traditionalistic paper-based
formulas of communicating and contracting gets a legal dilemma, as a lot of countries lack a
legal founding thereof as like Bangladesh. Moreover, when electronic contracts involve
companies in different countries, questions rise up in terms and conditions of which country’s
law applies, if the dealing is subject to taxation, if the contract is legally enforceable, what
dispute resolution form utilizes, and so on. Uncertainness and risks increase the economic
costs of dealings. I try to show important legal issues for B2C e-commerce:

Electronic contracting-
Traditionally, a contract bridge comes to life if propose is unequivocally received and a clear
up intent to make a legal relation lives. The contract, on altogether its provisions, is mutually
agreed upon, generally by either signature or ‘shake of hands’. Inch e-commerce, some offer
and acceptation can be intercommunicated thru electronic means. Electronic contracting
grows a lot of sound questions, including whether an electronic contract is legally binding
and to what degree, or whether it can be applied as evidence in the event of scrap.

Electronic signature/Digital signature-

The UN Commission on International Trade Law (UNCITRAL) identifies the works of the
traditionally handwritten signature as watches: a signature is to identify a person, to provide
certainty as to the personal involvement of that person in the act of signing, and to associate
that person with the content of documents. ‘Electronic sign’ or ‘e-signature’ mentions to any
formula to ‘sign’ an electronic papers. Examples are the identity of the sender typed at the
end of a paper, a secret code, a PIN, an image of a handwritten sign, etc. A ‘digital sign’ is a
character of electronic signature that implies the use of public identify cryptography or
infrastructure, esteeming that messages are encrypted with a particular identify and can only
be decrypted with a second specific identify. Digital signs are better than e-signatures. E-
signatures raise a lot of questions, such whether e-signatures comply with traditional
requirements of a sign and whether and under what conditions they should be believed.

Electronic Payment and security thereof-

A Fundamental demand for e-commerce is the developing of safe and effective electronic
payment arrangements. Electronic payment systems of rules get in several classes admitting
credit cards, digital checks, debit cards, click-card, stored value cards, and smart cards etc.
Modern technologies, it's more and more common that payment goes on applying a
transmission system medium not under the control of the financial arrangement. It therefore
is essential to accept steps to guarantee the protection of the messages forwarded such an
intermediate. The common protection features for electronic payment arrangements are
privacy, authenticity, and non-repudiation.

Dispute resolution-
On the advanced communication technologies, commercial relationships recognize no bounds
and geographical position of the signing parties is often spread out. This advances the enquiry
of where you bet disputes are settled, particularly when customer and seller are physically
distant. Two theories are useable to settle a dispute: courtroom, mutually exclusive dispute
resolution (i.e. negotiation, or intermediation). The two latter are usually preferable because
of their higher effectively and speed. The effect of dispute settlement is highly significant as

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the conflict mechanics proposed will mostly influence the positions of merchants and
consumers in a broad way, and is therefore with full force determining of the future growing
of e-commerce and the global supply chain in a broad way.

Consumer protection-
Success of e-commerce depends upon the secure and attractive environment supplied to
consumers. Consumers’ own data should be held on secret and saved, payments should be
guaranteed, the prime of law and legal power should be clear for the customer. Particularly in
B2C e-commerce, it's occasionally hard for consumers to found the dependability of the
contract partner or the quality of the product provided. Minimum criteria should be bonded to
so that the run a risk of electronic signing is decreased. Necessities on that point include truth
and availability of data, merchant contact data, commercializing exercises, disclosure of
features, terms and conditions, cost, cancellation, repayment policies, chance to reassessment,
linguistic communication, register of the transaction, protection, secrecy, self-regulatory
programs, dispute settlement and efficient enforcement. So to guarantee that these
requirements are valued by all companies and that an efficient sound model exists to
determine eventual disputes, particular rules and laws offering dependable environment for
electronic dealings should be issued.

Cybercrime-
The receptiveness of the online, the deficiency of recognition and the subordinate of users’
agreement of protection bring about to cybercrimes. Cybercrimes can be identified for
criminal acts as inch which computers field instrument, a target area or a site of criminal
action. Good example let in software system piracy, economic espionage, internet trafficking
(ID theft, credit and debit cards) or traditionalistic law-breakings which have addressed use
advanced ICT, such child porn or internet gambling. In several countries, criminal law
doesn't name and address cybercrimes. To get together the terror of electronic law-breakings,
countries have to make a favorable environment admitting laws, policies, technological
criteria, law enforcement and cybercrime describing. International criteria also as
international cooperation are essential to name and address the worldwide extent of
cybercrime.

Intellectual property rights-

On the exploitation of the Internet and digital technology, makes of cerebral property are
being digitalised at an unbelievable pace. Although it's straightforward to protect ‘physical’
processes letters patent and copyright polices, the nature of digital technology promotes
copying of digitalised intellectual property works, virtually instantly, without detectable
abasement in quality. What is more, Internet exploiters are at present customary to have
approach to data and capacity for free. Substantial saved by copyright police and all
associated rights are subject to electronic commerce and therefore copyright and patent of
invention polices have to be adjusted to modern ICTs.

E-commerce Law in Asia:

Trust is the most important factor for the use of the electronic settlements. Traditional paper
about based rules and regulations may create uncertainties the validity and legality of
ecommerce transactions. Modern laws adopted and impartiality implemented in the electronic
transactions form the basis of trust in the developed world. Where legal and judicial systems
are not developed e-commerce based transactions are at a disadvantage because of lack of

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security whether real or perceived. In many developing countries even today cash on delivery
is the most accepted system, even cheques and credit cards are not readily accepted.
Now Bangladesh government has made some efforts in establishing a regulatory framework
for transactions over electronic media. A committee has been set up to draft cyber law about
a year back but no appreciable progress has been made. Drafting such a law is a major task
and is unlikely to be successful if done by part-timers on voluntary basis as attempted by the
government. Though there are no specific legal frameworks of international or national laws
for e-commerce, additional laws have been enacted or are in the process in many countries.
Moreover, UNCITRAL in 1996 has adopted a model law on electronic commerce and some
of our neighbouring countries like India have also enacted laws recognizing evidence and
validity of electronic signature and contracts. This can be used as a basis for development of
local laws and regulations. Absence of such laws does not provide validity to transactions of
e-commerce and as such are not likely to be used by business organizations.
The types of laws are divided into four categories, namely laws on e-commerce, laws on e-
signature, laws on personal data protection and laws on electronic crimes. They are indicative
only, as in some cases they prove not to be fully appropriate, i.e. laws classified under “laws
on e-commerce” might include provisions about e-signature, cybercrimes or data protection
as well.

Bangladesh China India Japan

E-commerce Draft Law of Contract Act of Information
Information the People’s Technology Act
Technology Republic of 2000;
China 1999 Information
Technology
(Amendment)
Bill 2006)
E-signature Under way Electronic Electronic
signature law Signature Law
2004 2001
Personal data Personal
protection Information
Protection Act
2003
Electronic Un-authorized
crimes Computer
Access
E-payment Under way Interim
Measures for the
Administration
of Online
Banking
Business 2002;

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Development E-commerce in Asia and the Pacific Area:

E-commerce which can be identified as selling, buying, distributing, marketing, and
servicing of products thru the online and additional exposed networks, has been rising in
parallel to the expanded availability of the Internet. An arising number of dealings in global
trade are carried through attaining use of the online. Japan, China and India are the most
significant E-commerce base in the Asian and Pacific area, with an average yearly growing
rate of e-commerce turnover of 143 per cent all over the last five years.
In Asian Nations led statistics in term of e-commerce turnover per capita, with Australia,
Taiwan Province of China and Japan taking the lead, closely followed by the United States,
Netherlands and the Republic of Korea. However, the region also shows wide disparities in
conducting e-commerce, e.g. in the Republic of Korea around 50 per cent of Internet users
use it for online shopping, whereas in China, only about 20 per cent shop online. But now
China day by day increases these percentages.

Asia B2C E-Commerce Report December 2011:

 Japan: B2C E-Commerce gross sales turned over double-digit growth rates inside the
last years. For as a result, gross sales hit nearly JPY 8 trillion in 2010. In January
2011, numerous 80% of the Japanese online audience visited “Retail” websites.
 South Korea: inch 2010, B2C E-Commerce arrived at nearly 7% of retail sales in
Republic of Korea. Moreover, “dress, Fashion related Goods” and “household electric
Appliances” were the top product classes.
 China: Chinese shoppers are identical enthusiastic almost online shopping. As a
result, the total number of online shoppers is required to step-up to more than 300
million near 2015. Convenience and good conducts are most often cited as the
advantages of online shopping.
 India: Indian internet shops have to decide into consideration the ordinary Indian’s
hesitation to internet shopping. Nevertheless, more or less B2C E-Commerce players
launched themselves on the market. Homeshop18.com also Letsbuy.com were
conducing in conditions of unique visitors in October 2011. Moreover, Amazon is set
to introduce India in the first quarter of 2012.

E-commerce Present Situation in Bangladesh:

Nowadays the online possibly took for a huge marketplace possibly able of dealing the
population of the whole world. This is the question why come E-Commerce is so magnetic
for a lot of traditional businesses. E-commerce is modifying the technique people do
business. By large corporations to small industries, businesses are going away internet,
opening their products and service offers to new groups of people world. At that place, there
are several paths to get your products and services internet, from simple shopping web site to
high-end database driven, data-capture and online credit card confirmation solutions.
In Bangladesh, there is a great deal of interest in e-business; however, due to various
economic, infrastructural and legal reasons it has not spread. Most important companies,
associations, chambers and government offices have set up websites. These sites mainly
provide information about the organization, and its products and services. There are very few
sites where financial transactions can be completed. Main reasons for low e-commerce
transactions are absence of legal framework for completing an electronic business or financial
payment system, low Internet usage due to lack of adequate telecom facilities, and overall
lack of confidence in the security and reliability of e-commerce transactions.

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Bangladeshi internet shopping as the internet becomes more usable to Bangladesh; it's clear-
cut that online sales will spring up. This is ahead to more accessibility of online buys.
Competitor will become fast-growing as online shopping raises and so Bangladeshi retailers
shouldn't be left alone. The online retail industry is getting more significant as the internet
carries on rising in signification in Bangladesh. Bangladesh internet site Directory for Online
Shopping especial wholesale & retail choice of e-commerce internet site and first-class
stores, Dhaka shops for fashion clothing, shoes & jewellery. Chittagong online retail stores
for desktops, laptops, tablets & netbooks, Kulna e-commerce sites for toys, kids & baby, and
Rajshahi music, movies & games wholesalers & Sylhet websites for sports & outdoors, e-
commerce & e-business from Barisal. At present, as a started out with e-commerce they
attempt to establish an effective platform in Bangladesh. Additionally, they are wishing
customer support to establish a well platform to e-commerce in Bangladesh.
Currently many people of Bangladeshi livelihood abroad in several countries including USA,
Canada in North America, UK, Australia, China, Middle East and other parts in the world.
Several times they would like to shop online from abroad to purchase Bangladeshi products.
This may be for gifts shopping, for shipping groceries to Bangladesh or to take the products
in their living countries. Because the purpose they all of the time try to get a reliable
Bangladeshi online shop and for future shopping.
Only Cell-Bazaar offers an example of a successful mobile based electronic marketplace in
Bangladesh. It is a mobile application that brings buyers and sellers together in a mobile
environment where they can publish and retrieve information on goods or services. It is a
real-time collection of classified advertisements that is accessible through a mobile phone
connected to Grameenphone’s mobile network, or through a computer via the Cell-Bazaar
website (www.cellbazaar.com). Advertisements can be posted to the system and browsed on
a mobile phone using SMS, WAP, or IVR (voice, for buyers only), and through a computer
via the Cell-Bazaar website. At present, 35,396 posts for multiple products in 141 categories
are available for viewing, ranging from livestock to education services to agro-produce to
electronics. Users pay standard SMS, WAP and voice rates to access the service.
But nowadays present government is trying their most in effect to raise upwards the ICT and
ICT based dealings in Bangladesh by legal model and arranging infrastructures.

Government Effort:
Bangladesh is a small country and still we are third world people, but our government effort
not too much cheap for e-commerce. I show my article briefly:
 Manufacture of 3200 km optical fiber network has been finished. As an outcome, the
swiftness of online communication will increase.
 Bangladesh has been offering bandwidth internet services since being linked up to the
superhighway thru submarine cable through with SEA-ME-WE- 4 (South-East Asia-
Middle East-West Europe 4) consortiums. Nowadays online bandwidth is 44.60
Gigabytes per second (Gbps).
 Bangladesh Telephone Shilpa Shanstha has already started to manufacture laptops at a
low-cost in the range of Tk. 10,000 to Tk. 20,000 depending upon confirmation.
 In this year Government already give legal permission for validation of Next
Generation Network (3G) based telecom network for Digital Bangladesh.
 Number of Internet Service Providers (ISP) has been added to 405 and the overall
number of call center, including the two global call centres, in now 245.

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 475 out of 482 upazilas have been added subordinate dial-up internet connection. In
addition to, all the upazilas are at present under mobile internet coverage.
 108 Union Parishads have been worked subordinate optical fibre network with
BTCL’s fund.
 BTCL has commissioned 23,500 high-speed ADSL internet links in different cities.
 Number of internet subscribers has expanded 1.80 core resulting in the online density
to growth to 12 percent.
 Bandwidth custom has increased from 7.5 Gbps and said to have exceeded 15.2 Gbps
in 2010, December. Bandwidth ability has been improved to 44.3 Gbps from a simple
7.5 Gbps.
 Steps have been taken to launch Bangladesh’s individual communication satellite
(proposed Bangabandhu Satellite-1).
 Telephone subscribers have expanded from 46 million to 71.4 million across to the
end of last two years, as a result of which tale-density has added to 44.6% from 32%.
 99% of the overall population and 90% of the full country have been worked under
telecommunications network. 90% upazila’s have been brought under the internet
coverage through mobile phones.
 BTCL’s digital telephone exchanges have been expanded 485 from 484. Digital
telephone exchanges have been launched in 42 growth centres across the nation.
 More than 100,000 newly telephone connections have been subscribed to throughout
the country since July 2009 as steps were taken to supply telephone connections
across the nation including upazilas and growing centres without joining fees.
 TeleTalk has added to its network in 64 zones and 449 upazilas through with 1290
Base Trans receiver Stations.
 Automatic Clearing House has been presented in Bangladesh Bank. Automatic
Clearing House is helping in fast clearing the checks.
 Bangladesh Bank has opened permit for mobile banking also making credit card
based internet transactions.
 Controller of Certifying Authority has begun serving for the use of introducing digital
signature under the purview of ICT Act 2009, with a view to premising e-Transaction,
e-Commerce and e-Procurement. As yet six organisations have been authorised for
this function.
 Promotion of e-Krishi through with Agriculture data and Communication Centre.
 Establishing of online Post Shop Bangladesh Postal Division Proposed Ministry of
Post and Telecommunication.
 Launching of e-Ticketing arrangement through with Smart card Programme has
begun Bangladesh Road Transport Corporation.
 Task on “developing of NGN/ WiMAX/ telecom Network” has been projected by
BTCL; also NGN/WiMAX task has been forwarded to ERD for funding. Broadband
Wireless Access permissions have been given to 2 organizations to supply wireless
broadband services.
 Facility of Digital Exchanges in 178 Upazillas, 42 Growth Centres has been finished
by the project on “Installation of Digital Exchanges in Upazilla and Growth Centres”.
 Facility of 470 km. optical fibre cable line has been finished out of targeted 1450 km.
over the plan on “Internet Information Network Expansion”.
 Accompanying international operation, the draft Policy Paper on Guidelines for
Renewal of Mobile Phone License developed by FY 2011.
 Information Technology Rules Act 2010 and CPS Policy /Licensing Policy/Audit
Rule already established.
 Certifying Authority License has been issued to six non-government organizations.

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 World Bank’s Promises of US$ 50 million has been accepted for the developing of
ICT sector.
 Authorizing fee per unit has been cut down from 3000 TK to 500 TK for ISP operator
and other fees have been reduced.

Problem:
Still some programmes undertaken as like Infrastructure and others not perfect for strongly
established B2C E-commerce in Bangladesh:
 In the overall class of present IT infrastructure in the country is not of trusted level.
 Setting up of rules/regulations/guidelines to enter electronic signature is underway.
 Poor telecommunication infrastructure with limited fixed-line access, unreliable
connectivity and low bandwidth (9K);
 High price of computer and hardware: The per capita income of our people is less
than US$520. But in order to buy a computer it is needed US$500 and for this reason,
it is beyond the capacity for a villager’s to buy it.
 Preparation of e-signature guideline/security guideline/information centre guideline
still underway.
 High-speed net connection is now also costly and limited.
 Absence of cyber law
 An Aide Memoire by World Bank to launch Digital Signature is under active
condition of ERD.
 Deficiency of continuous broadband connections in the call centres.
 Broadband speed up, quality and dependability are below standard.
 Undependable electricity resource.
 Monopoly, high link costs and inaccessibility of networks are the main impediments
for rural and backwards communities in getting internet connections.
 Formulation of Rules, regulations and guidelines is currently underway under
electronic signature programme.

Recommendations:
E-Commerce is growing at a fast pace in the developing countries and estimates of total
worldwide e-commerce transaction in 2003 vary between 1000 to 4000 billion US Dollars. At
present over 70% of e-commerce transactions are of B2B category. Most B2B transactions
involve big firms setting up online exchanges to buy and sell industrial inputs like steel,
chemicals, components, etc. Large banks and financial houses had been using electronic data
exchange for their transactions for quite some time. Industries, which have largest share of
B2C e-commerce transactions, are:-
 Financial Services: these services are easily digitized, delivered online and transaction
costs are low.
 Computer Hardware and Software: customers are Internet savvy, detail specs are
worked out and transaction processing systems are in place for most vendors.
 Travel: consumers are buying tickets directly making significant savings.
 Event Tickets: consumers are able to log on to the sites, make purchases and
payments, and the delivery system is also easy.
 Retailing: traditional retailers and catalogue companies have created websites. Most
popular items are consumer electronics, books, music, video, and toys.

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In Bangladesh, there is a great deal of interest in B2C E-commerce; however, due to various
economic, infrastructural and legal reasons it has not spread. Most important companies,
associations, chambers and now most of the government offices have set up websites. These
sites mainly provide information about the organization, and its products and services. There
are very few sites where financial transactions can be completed. Main reasons for low
ecommerce transactions are absence of legal framework for completing an electronic
business or financial payment system, low Internet usage due to lack of adequate telecom
facilities, and overall lack of confidence in the security and reliability of B2C E-commerce
transactions. Several factors are important in the online marketing compared to traditional
method:-
Pricing is an important consideration for standard products. Customers compare
products available on the Internet and usually buy the lowest total price offerings. It is
also necessary to offer prices lower than the traditional outlets to encourage buyers to
shop online.
There should be an EFT (Electronic Fund Transfer) Gateway, which will connect all
finance and banking institutions, ATMs, POS and related websites. Such Gateway
will speed up the transactions among banks, commercial institutions. This sort of
infrastructure needs to be implemented on priority basis.
A CCG (Credit Card Gateway) should be established. A credit card gateway is a
server that makes online credit card transactions safe (Skinner, 2005). The software
protocols in the CCG use the information provided to check for availability of funds
and to make sure the credit card is not expired, lost or stolen. This takes only seconds.
When the transaction is approved a receipt is generated for the customer, and the
funds are transferred to the vendor's bank account through EFT.
To expedite the installation of second submarine cable joining for extending high-
velocity internet facilities. Yet at present is the time to plan for the installing of third
submarine cable.
Government might invite individuals and private sectors to extend broadband joining
in rural areas under public private partnership. In that connection, NGOs working in
the remote areas possibly involved. This will then be measured as government-
private-NGO Corporation.
Mass-produced regularly purchased uniform products are easier to sell online than
custom-produced items. Well-known brands have an advantage as customers are
aware of the product quality and specifications.
Urgently required items are unlikely to be ordered online due to waiting period for
delivery. Some of the products are of such nature that the customers desire to touch
see or try out prior to purchase. Therefore, these products may require to be displayed
in convenient retail outlets for customers to visit and make up their minds.
To accept steps for cutting internet joining fees and the price of bandwidth.
If the product and service are described in unique terms or combination of terms the
searchers are likely to use the search engines which will find that offering more easily
and present it to potential customers.
Service business is particularly suited to the Internet as their products can be more
easily produced and delivered with digital process. Digital information can be
collected and disseminated over the Internet at lowest cost.
Most common method of payment used in B2C transaction is credit cards. Consumers
are familiar with it; it is easy, fast, and reasonably secure. To ensure security of credit
purchases over net as a standard called ‘Secure Electronic Transaction (SET)’ has
been adopted by MasterCard and Visa that involves the use of digital certificates to

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verify the identity of all parties in a transaction. The SET protocol also ensures the
integrity and confidentiality of information over the net.

Conclusion:
Nowadays every second’s world moving so fast only used by technology positive side,
Bangladesh is a small and developing country but it’s time to changing. In the world most of
the country day by day more popular B2C E-commerce system even Asian some country;
China, India, South-Korea and Japan. B2C E-Commerce is the system of buying and selling
of goods and services business to customer over electronic medium. Only the internet
connection is not enough for the development of e-commerce. The whole infrastructure is
essential for the development, maintenance and growth of B2C e-commerce. The analysis of
the B2C forces reveals that the prevailing situation is encouraging for the implementation of
e-commerce in Bangladesh. The macro and micro economic situation is favorable to B2C e-
commerce. The synopsis of the legal and regulatory statutes indicates that Bangladesh has
made significant progress in facing the challenge of embracing e-commerce in due course of
time. Even Bangladesh doesn’t require any foreign expert to implement, execute and
maintain B2C e-commerce infrastructure.
Despite the encouraging state of implementation, e-commerce can never be deployed until
and unless an Electronic Fund Transfer (EFT) Gateway and a Credit Card Gateway (CCG)
have been established. These two Gateways will eliminate the security issues in e-commerce
and enhance the e-transactions. In addition to that, creating awareness among the citizens and
the business organizations is essential for the implementation and growth of e-commerce in
Bangladesh.

References
Anderson and et al. (Summer 2002), “The New E-commerce Intermediaries”, Slogan
Management Review 43, no.4
Barua and et al. (Fall 2001), “Driving E-business Excellence”, Sloan Management
Review 43, No.1
Bhattacherjee, A. (Summer,2002). “Individual Trust in Online Firms: Scale
Development and Initial Test.”, Journal of Management Information Systems 19, no.1
Andam, Zorayda Ruth (2003). E-commerce and e-business. E-ASEAN Task Force
and Asia-Pacific
Development Information Programme, United Nations Development Programme.
Available online at < http://www.apdip.net/publications/iespprimers/eprimer-
ecom.pdf >
Bangladesh Country Strategy Paper, Department for International Development
(DFID), Dhaka (1998), < http://dfidbangladesh.org/>
“Finance Division, Ministry of Finance Government of the Peoples’ Republic of
Bangladesh” http://www.mof.gov.bd/
United Nations (1999). UNCITRAL Model Law on Electronic Commerce with Guide
to Enactment 1996 with Additional article 5 bis as adopted in 1998. New York.
Available online at http://www.uncitral.org/pdf/english/texts/electcom/05-
89450_Ebook.pdf
“BTTB's Digital Data Network and Broadband Internet is now to 69 areas covering
41 districts”, Bangladesh Telegraph and Telephone Board, Ministry of Post and
Telecommunication, Government of Peoples Republic of Bangladesh.
<http://www.bttb.gov.bd/>

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United Nations (2002). UNCITRAL Model Law on Electronic Signatures with Guide
to Enactment. New York. Available online at
http://www.uncitral.org/pdf/english/texts/electcom/mlelecsig-e.pdf
“Guidelines for Different Programs under Special Allocation for Science and
Information & Communication Technology”, Programs of the Ministry, Ministry of
Science and Infromation and Technology, Government of Peoples Republic of
Bangladesh. http://www.mosict.gov.bd/html/programs.htm
Hossain, N. (December 2000), “E-Commerce in Bangladesh: Status, Potential and
Constraints”, JOBS, IRIS, University of Maryland
Ganguly D., Chakraborty S. (2008). “E-commerce-forward and reverse auction-a
managerial tool to succeed over business competitiveness”, SNDP-2008
Islam, R. (September 9, 2005), “Challenges of Online Banking”, The Financial
Express, Bangladesh
“National Telecommunication Policy 1998”, Bangladesh Telegraph and Telephone
Board, Ministry of Post and Telecommunication, Government of Peoples Republic of
Bangladesh. <http://www.bttb.gov.bd/>
Economist Intelligence Unit (2006). The 2006 e-readiness rankings. Available online
at <http://graphics.eiu.com/files/ad_pdfs/2006Ereadiness_Ranking_WP.pdf
Agarwal, R. and Prashad, J 1997, “The role of innovation characteristics and
perceived voluntariness in the acceptance of information technologies”, Decision
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Pinker and et al. (May 2002), “Strategies for transforming ‘Old Economy’ firms to E-
Business.”, Communications of the ACM 41, no.5
Skinner, B. (November 12, 2005), “e-commerce hampered by inadequate payment
systems”, The Daily Star, Bangladesh.
Appendix-1
Objectives of the Industrial Policy 1999

1. To expand the production base of the economy by accelerating the level of

industrial investment.
2. To encourage the private sector to lead the growth of industrial production and
investment.
3. To focus the role of the Government as a facilitator in creating an enabling
environment to expand private investment.
4. To permit public undertaking only in those industrial activities where public-
sector involvement is essential to facilitate the growth of the private sector and/or
where there are overriding social concerns to be accommodated.
5. To attract foreign direct investment both in export and domestic market-oriented
industries to make up for the deficient domestic investment resources and to acquire
evolving technology and gain access to export markets.
6. To ensure rapid growth of industrial employment by encouraging investment in
labor-intensive manufacturing industries including investment in efficient small and
cottage industries.
7. To generate female employment in higher skill categories through special
emphasis on skill development
8. To raise industrial productivity and to move progressively to higher-value-added
products through skill and technology upgrading.
9. To enhance operational efficiency in all remaining public manufacturing
enterprises through appropriate management restructuring and pursuit of market-

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oriented policies.
10. To diversify and rapidly increase the export of manufactures.
11. To encourage the competitive strength of import substituting industries in catering
to a growing domestic market.
12. To ensure a process of industrialization that is environmentally sound and
consistent with the resource endowment of the economy.
13. To encourage balanced industrial development throughout the country by
introducing suitable measures and incentives.
14. To utilize effectively existing production capacity.
15. To coordinate trade and tax policies.
16. To develop indigenous technology and to expand production based on domestic
raw materials.
17. To rehabilitate deserving sick industries.
Source: BASIS,< http://www.basis.org.bd/industrial_policy.pdf >

Appendix-2
Legislation Relating to Trade

Area Legislation

Custom Duties Custom Duties Customs Act, 1969

Import Regulations 0; Customs Act, 1969; review, Appeal and

rters and Indenters (Registration) Order, 1981;

Customs Valuation Amendments introduced to the Customs Act,

1969, in 1997

Pre-shipment Inspection Amendments introduced to the Customs Act,

1969, in 1998

Rules of Origin Standard Rules of Origin, 1977

Standards Imports and Export (Control) Act, 1950

Sanitary and Phytosanitary Measures

Marketing and Labeling

Anti Dumping Measure Amendments introduced to the Customs Act,

1969, in 1995
Countervailing Measures

Safeguard Measures Amendments introduced to the Customs Act,

1969, in 1997

Pricing and Marketing Arrangements Consumer Index

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Export Regulations Import and Export (Control) Act, 1950; Customs

Act, 1969

Government Procurement No legislation

Competition Law No legislation

Intellectual Property Rights Patents and Design Act, 1919; Copyright

Ordinance, 1962;
Trade Markets Act 1940

Foreign Investment Foreign Investment (Promotion and Protection)

Act, 1980

Foreign Exchange Foreign Exchange (Regulation) Act, 1947

Banking Service Banking Companies Act, 1991

Insurance Services Insurance Act, 1938; Insurance Corporations

Act, 1973; Insurance Rules, 1953

Telecommunications Services Telegraph Act, 1887

Air Transport Services Details not available from the authorities

Maritime Transport Service Merchant Shipping Ordinance, 1993; Inland

Shipping Ordinance, 1976; Bangladesh Flag
vessel (Protection) Ordinance, 1982

Source: World Trade Organization, 2000. Trade Policy Review Bangladesh.

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