Overview of the E-Commerce Industry in Bangladesh

1. Bijon Islam, CEO
Presented by
Unleashing
Digital Commerce
in Bangladesh

2. Table of Content
2
Overview of
the Sector
| Digital Commerce in Numbers
Challenges | Bottlenecks Limiting Digital E-commerce Growth
Opportuniti
es
| COVID-19 – Accelerator for Digitalization
| Surging Digital Ecosystem
| Hyperlocal E-commerce for SME Digitalization
| Assisted E-commerce to Promote Digital Buying
Behavior

3. Overview of the
Sector
3

4. Digital Commerce in Numbers
$3bn Estimated Market Size in 2023
1.25 lakh Employment in the sector
1%
Bangladeshi’s do online
shopping
2000 E-commerce websites
50,000 Facebook based companies
103rd In B2C e-commerce index
Source: E-cab and Global E-commerce Index and Statista.com

5. Challenges
5

6. Bottlenecks that are limiting the growth of digital commerce in Bangladesh
6
Slow Online
Adoption in
Consumer
Lack of
Credibility
Predominant
COD
Transactions
Unstructured
Supply Chain
Underdevelop
ed reverse
logistics
Supply
Side
Inadequate
Infrastructure
Lack of
Integration
Demand
Side
City Center
Based

7. Onset of COVID-19 led many e-commerce businesses to cease operation
7
Tk666cr
Loss incurred directly in the
e-commerce sector
fCommerce
eCommerce
Ride-Sharing
Top 3 sectors hit badly due to
the pandemic/ lockdown 82%
eCommerce Businesses have
been heavily impacted
75%
Current Cash on Delivery
compared to previous range of
85% to 90%
Source: ECAB, The Daily Star Bangladesh Startup COVID-19 Response Group & LightCastle Analysis

8. Opportunities
8

9. The pandemic also accelerated digitalization
9
300%
Growth in delivery of grocery,
medicine and essentials.
10 to 25%
Increased Average basket size
CIP: for grocery orders
Source: Ecab, The Daily Star Bangladesh Startup COVID-19 Response Group & LightCastle Analysis
70
Lakh+
New MFS Account
$151
Mn +
Worth of transactions every
day by 5.3 Mn people till the
end of June 2020
Grocery
Logistics
Fintech

10. Surging digital ecosystem paves the road for innovative models
Source: E-cab and Global E-commerce Index, Statista.com, BTRC, Hootsuite
5th largest mobile
market in Asia Pacific
Median age of
population is 27.6
years
Number of active
social media users
30 million
Number of mobile internet
users 85 million
Total number of internet
subscribers 103 million
Number of mobile
Subscribers 165
million
55%
34% 33% 32%
22%
16%
Bangladesh
India
Myanmar
SriLanka
Pakistan
Afganistan
Internet Penetration Rate (2019)

11. Hyperlocal delivery model to digitalize SMEs and mom and pop shops all over the
country – Solving Last Mile Fulfillment
11
To digitalize SMEs
and small shops
all over the
country
Goal
Digital market
linkages through
last mile fulfilment
Outcomes
Better access to
finance -
Improved
inventory
management
Digital credit score
for SMEs
Reducing
inventory cost and
lead time while
also expanding
customer base
Leveraging
partnerships with
local shops
(Example –
Amazon and
Kirana Stores in
India)
How it works
Objective
Order fulfilment
done by local
stores Last Mile Market
Linkage
Customer
places order
online
E-com
platform,
SMEs digital
aggregator

12. Assisted e-commerce in promoting faster adoption to online shopping
12
Assisted E-
commerce
Model
Customer willing
to purchase a
product online but
need assistance
Nearest physical
store the e-
commerce
company has tied
up with
Customer gets to
experience the
product they are
willing to buy
Shopkeeper assist
the customer to
place online order
Customer can
take delivery from
the physical store
or get it delivered
to her home

13. Thank You
Address: Level 5, House 10/12, Road 1B, Niketan, Gulshan 1, Dhaka 1212, Bangladesh
Phone: +880 1712 194 944 | +880 1711 385 988 | +880 1747 353 438
Email: info@lightcastlebd.com
Website: http://www.lightcastlebd.com | http://www.lightcastledata.com
Blog: http://www.lightcastlebd.com/blog
Reports: https://databd.co/reports