E-com firms face several problems in Bangladesh

29 Mar '22

2 min read

Pic: Shutterstock

Lack of technological advancement and internet penetration coupled with bureaucratic mesh and resource-related challenges have prevented the growth of e-commerce in Bangladesh. Moreover, most rural areas fall in the low-income level segment or live in poverty, and therefore, smartphone usage is limited there, restricting e-commerce penetration.

A 2019 survey found Internet usage in rural Bangladesh was only 34.8 per cent. Around 65.2 per cent of the people do not use Internet, primarily because of the lack of technical skills needed (65 per cent) or they just think it is unnecessary (54 per cent). Another survey found only about 41 per cent of mobile users use smartphones in the country.

Added to this is the lack of demand for fast deliveries in rural areas. Hundreds of local grocery stores offer goods on credit with instant delivery. Online shops do not offer credit. This makes it tough for e-commerce platforms to serve outside metropolitan areas.

Poor logistical infrastructure is another challenge for e-commerce companies. From maintaining proper distribution channels to storing perishables to delivering products to the end-consumer in a timely manner, deficiency in logistical infrastructure is deeply felt, according to a report in a Bangladesh daily.

The current vegetable and grocery supply chain is full of inefficiencies due to lack of a strong cold chain network. Farmers suffer because of wastage while customers suffer from poor quality of fresh products and price fluctuations.

Therefore, investing in a proper logistical infrastructure will be the key to growth of this industry further.

Fibre2Fashion News Desk (DS)

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