eCommerce in Numbers

Internet penetration (% of population with 2016, April: 38,5 % (62.004.000 users (Source: BTRC: Bangladesh
internet access) Telecommunication Regulatory Commission) out of a population of
approximately 161,000,000 (Source: BBC: Bangladesh Bureau of Statistics)

Smartphone penetration (% of population Currently 18-23 % (Varied Sources including AMTOB, BMPIA, 3rd
with smartphone) party analysts) With an annual growth rate of 30% (Source: eCab)

eCommerce market as percentage of total In Real GDP terms less than 1%. However if connected industries (for
GDP example imports, logistics, banking and exports through ecommerce
taken into account it nears 2.5%) (Source: eCab)

Annual growth in the eCommerce sector Aggregated growth for the past three years trending at 200%+ year on
year. Growth is calculated by e-CAB in three strata. 1. Growth in eCom
Businesses, 2. Growth in Consumers and 3. Growth in Transactions
(Source: eCab)

Annual growth in mCommerce mCommerce is not separately calculated in Bangladesh. Convergence in

mobile technology has blended e-commerce and m-Commerce together.
However if Mobile Value added service is taken as a part of m-
Commerce, the collective impact in all telco earnings is around 10%
from mVAS. This in turn adds around a further 1% impact on GDP.

mCommerce growth in mVAS and spillover of eCom stands at around

100% year on Year.

(Source: eCab)

Number of online shoppers A Large portion of eCommercce trade is still done through Cash on
Delivery (CoD). As a result a calculation of online shoppers is
challenging. Estimates suggest that the Number of Online Shoppers in
2015 is between 3 and 5 million Bangladeshis. (Source: eCab)

The market was growing by 15% to 20% in 2014 (Source: Jahangir

Shah, Online shopping increases, Prothom Alo, 2014-12-29.)

Market share for eCommerce for B2B vs. 10% B2B, 90% B2C (Source: eCab)
B2C
Average spending per online shopper Average is BDT 900-1000 Or USD 11-13 (Source: eCab and BASIS)
VAT-rate on eCommerce Currently VAT is exempted for the financial year (which was set at 4%
in the national budget). However, this exemption has happened for the
past two financial years. (Source: eCab and BASIS)

Specific rules regarding company No specific rules. However there are encouragement clauses in setting
establishment in relation to online export up online export companies in Bangladesh. Including these
components:

- Tax holiday
- Income tax holiday on Foreign employees
- Discounted infrastructure
- Accelerated repatriation of dividends through BoI
- Accelerated registration through BoI and RJSC
- Tax exemption on import of machinery (Through Hightech
park Authority)
- Special IT zones as Hightech Park Authority

You do not need to set up a company in Bangladesh in order to remit

regularly. But Bangladeshis credit cards can only remit a total of 3000
USD a year in multiple transactions for software or ICT services.
A Bangladeshi company can also remit outside of the country if it
becomes a BASIS member and applies for a special purpose card which
has a transaction limit of 5000 USD (the company can notify BASIS
and get card reactivated when the limit is reached).
(Source: eCab and BASIS)

Key eCommerce platforms

E-commerce Food Delivery platforms have increased in the last couple of years. Foodpanda and HungryNaki are the two
of the biggest online food delivery companies.

Online grocery shopping is also a growing platform; Chaldal and Direct Fresh.

Other big platforms in different categories are: Muktobazaar.com, banglamart.com, sohojshopping, Ekhanei.com,
Bikroy.com, DekheKinun.Com, Lamudi, Carmudi, Kaymu, rokomari.com, webbangladesh.com, haatbazar.com,
number1shop.com, bdbazar.com, bengalcommerce.com, sonarmarketplace.com, upoharbd.com, bdgift.com
cellbazaar.com, Biponee.com, Kiksha.com, Shohoz.com, Bdtickets.com, Nijekini.com, Daraz.com, Lamudi.com,
pBazaar.com, pharmaquik.com, epharma.com, AjkerDeal.com, PriyoShop.com and Bagdoom.com.

Many of the E-commerce platforms do have a Facebook platform where most of the transactions are done through.

(Source: BASIS and eCab)

Logistics Key logistic and distribution operators in the eCommerce market

Bangladesh Post office (BPO), Sunderban Courier Service, Continental Courier Service, SA Paribahan, e-Courier, Aramex,
TNT, 4Star, 5Star, ELS

(Source: eCab, BASIS)

Key product categories in the eCommerce market

The products and services that now dominate the countrys e-commerce are tickets (railway, domestic air), hotel booking,
electronic products (for household, phones), books, jobs, clothing, food items, baby consumables and financial services.
 Types of payment
Overview:
Cash on Delivery
Mobile Banking
o bKash
o SureCash
o IFIC Mobile Banking
o Dutch Bangla Mobile Banking
o UCASH
Visa or Master Card
American Express Card
Payza
Paypal (http://bit.ly/29W6IEh)

(Source: BASIS)

In Bangladesh the most popular payment method regarding e-commerce is cash on delivery (CoD) which count for 90% of
the spending behaviour (however logistic partners are now providing escrow as well as a formalized cash carrying semi
automated system). Furthermore, the second major form of payment is MFS (Mobile Financial Service). All Major Card
switches are also available (Visa, Mastercard, American Express, Diners Club etc). eBanking is also seldom used.

IT exporter (from Bangladesh) can use Export Retention Quota (ERQ)/Foreign Currency (FC) account with bank to pay
subscriptions of any software tool/system.

Bangladeshi credit cards can remit total 3000 US Dollars a year in multiple transactions for software or ICT services.

(Source: eCab)

Return policy/ Consumer rights

In substance, there are many gaps in the law (the Consumer Rights Protection Act, 2009 in Bangladesh) (Source:
Consumers International). It is seldom invoked and put into practice (Source: eCab).