E-commerce: benefits in trade & commerce, Bangladesh

The rapid growth and advancement of Information and Communication Technology makes the vast treasure of all forms of knowledge, information, invention, methodologies, techniques, process and technologies from the entire globe available to us by accessing via internet. E-commerce, a new horizon for commerce which has opened up by the internet, requires the use of internet for buying, selling and delivering products and services. To left behind all of its economic backwardness, Bangladesh has easily entered to IT world and it is hopeful for us that, e-commerce already made inroads in our society, indeed into our psyche. With the help of e-commerce Bangladesh can be benefited in many ways like the expansion of business, reduction of communication difficulties, competition against the exporters of countries, exportation of quality goods in foreign countries etc.

What is E Commerce in Bangladesh?

E–commerce involves buying and selling of products and services by businesses and consumers through an electronic medium. … B2C commerce involves e–commerce between businesses and the consumers. This form of e–commerce involves the purchase of books or any form of consumer goods.

How many e commerce websites are there in Bangladesh?

In 2009 Bangladesh Bank approved online payment and in 2013 the bank approved the use of debit and credit card for online payment. The eCommerce Association of Bangladesh is the trade body for eCommerce in Bangladesh. According to the association, there are 8,000 eCommerce pages in Facebook alone.

Starting an E-Commerce business in Bangladesh

E-Commerce business and danger of E-Commerce Business in Bangladesh.

The term E-commerce refers to the activity of buying or selling goods, products or even services over the internet. E-commerce transactions range from the obvious stuff such as online retailing, online media stores, online shopping etc. to the more indispensable matters such as digital payment, online banking and even public administration procedures. In this article we will focus the necessary information regarding how to start an E-commerce business in Bangladesh.

E-Commerce Business in Bangladesh

Types of E-Commerce:

Contents

• Types of E-Commerce:
• Starting your E-Commerce Business:
• The Dangers of E-Commerce

There are three kinds of E-commerce in terms of the composition of the product, which are as follows – 

1. Goods oriented: These online businesses deal in tangible and physical goods or products over the digital mediums.

2. Service oriented: These online businesses specialize in providing services to a customer, be it between companies or just ordinary persons or vice versa;

3. Digital products oriented: These online businesses conduct legitimate businesses like the previous two except the goods or services they provide are entirely digital.

These online transactions are usually done in the following six ways –

1.Business to Business (B2B): The “Business to Business” transactions include two more companies conducting business with each other and barely ever involve the final customers;

2. Business to Customer (B2C): The “Business to Customer” transactions involve a company or business selling their goods or services to the prospective consumers;

3. Customer to Customer (C2C): The “Customer to Customer” model refers to the direct transactions conducted between the consumers themselves;

4. Customer to Business (C2B): The Customer to Business transactions refers to the providing of goods or services by a customer to legitimate businesses;

5.Business to Administration (B2A): Business to Administration involves the transactions between businesses and governmental or administrative bodies.

6. Customer to Administration (C2A): Customer to Administration refers to the transactions that are made between the ordinary consumers and governmental bodies.

Starting E-Commerce Business

Starting your E-Commerce Business:

The process required for starting an E-commerce business in this country entirely depends upon the nature of the business itself.

• Individual businesses: If your online venture is all about the Consumer to Consumer (C2C) model and you simply wish to trade with someone over the internet, then not a lot of formalities are required. On the other hand, if you are actively selling any product or services through a website or page and you yourself are the sole proprietor of the said business, then you may need a valid trade license and proper E-TIN set up.
• Companies or Associations: If your favored business model is Business to Customer (B2C), where you want to set up a company or association to sell your goods or services, the laws currently in force in Bangladesh regarding companies, partnerships or associations etc. will be applicable to you.
• Domain & intellectual properties: Another important step of setting yourself up in the E-economy is to purchase a domain name. Being prepared with a valid domain, trademarks, copyrights etc. will be instrumental in securing your intellectual properties among other things.
• A typical online business in Bangladesh: A typical online business in Bangladesh begins with the creation of a website or a public page in asocial media platform. The products or services to be sold are then catalogued in to the website or page for the consumers to browse through. The final part of this initial process is to integrate a secured payment method, and there are quite a few good options to choose from.
• Payment methods: A lot of online stores provide a cash-on-delivery system which of course does not require any digital method of payment. On the other end of the spectrum, a good chunk of all the mobile banking in this country is currently being done through services such as Bkash, Rocket, Nexus Pay etc., but you also have the choice to accept other services such as the various credit or debit cards, PayPal, Money gram or any other FIN Tech (Financial Technology) methods. The trick is to go with something that is easily accessible and has the greatest number of users.

As of now, it has been permitted by the Bangladesh Bank to transfer funds up to BDT 5,00,000 between two clients having account on the same bank through online facilities, provided that the transactions comply with the prevailing Money Laundering Prevention legislations and related government circulars.

In the event of any legal issue rising from these ventures however, it is always best to seek professional help. As per the laws currently in force in Bangladesh, partakers in the E-economy are entitled to many legal remedies that can be availed with the least amount of hassle. The prospective dangers of conducting E-commerce businesses will be further discussed in this article.

Danger of E-Commerce Business in Bangladesh

The Dangers of E-Commerce

Being a relatively recent development in the economic history of Bangladesh, there are many potential issues that can arise from an online venture. Some of these issues are briefly discussed below –

1. Credit and guarantee: A good number of the higher-end purchases are made through credits such as EMI or other forms of installment plans. If the customer defaults, legal actions may be necessary in some cases.

2. Financial frauds: Financial frauds such as credit card fraud, use of unauthorized payment methods etc. happen all the time when it comes to E-commerce in Bangladesh. Established under the Money Loan Court Act 1990, the Aretha Rin Adalat is a judicial body that deals with the recovery of money loaned to people via public sector financial institutions. Financial frauds committed in e-transactions such as credit card frauds etc. can be adjudicated in this court. There are several other legal remedies available to a potential victim of fraud under the laws of Bangladesh such as the Digital Security Act, 2018 among others.

2. Return of products or Non-delivery of Products: E-commerce businesses periodically recall products which are returned by the customers for various reasons, some of which are legitimate issues such as the size mismatch of clothing products while others are as vague and illogical such it can be. Other than the financial blows sustained by the venders, reasons such as return of products or non-delivery of products can also be detrimental to the buyers. Under the laws currently in force such as the Sale of Goods Act, 1930 etc., online sellers and buyers are entitled to a plethora of rights that can be enforced legally.

3. Quality of products: The E-economy of Bangladesh has a long history of venders providing unsatisfactory goods or services to the customer. This is mainly due to the fact that the customers do not get to check or verify what they are buying before the actual delivery takes place. This has apparently resulted in sellers delivering damaged, expired or unusable products in the end. Issues of damaged goods or goods in lesser quantity than originally agreed upon can be brought to legal action under the governing laws of the country such as the Consumer Protection Act, 2009, The Sale of Goods Act, 1930, The Contract Act, 1872, The Penal Code, 1860 and the Standard of Weights & Measures Ordinance, 1982 etc.

4. Adulterated goods: Be it provided by a consumer or a company, if an online vender is responsible for dealing in adulterated goods and products then he is subject to legal consequences. The Special Powers Act, 1974 provides legal provisions relating to the adjudication of sellers who deals in adulterated foods, drinks or other products.

5. Infringement of Intellectual Property: Due to the state of the basic economy and the newness of information technologies, there is a general disregard among the people of Bangladesh for intellectual property laws, especially when it comes to digital products. For example, only a fraction of the internet users realizes that the songs or videos they download from websites on a regular basis are subject to copyrights. The laws governing the matter of Intellectual Property such as – the Copyright Act, 2000, the Patent and Design Act, 1911, the Trademarks Act, 2009, the Geographical Indication (Registration and Protection) Act, 2013 etc. are applicable in issues arising out of an E-commerce venture.6. Exploitation: The very nature of the techs used for conducting various online transaction leave room for loopholes that can be exploited for illicit gains. Credit or debit card frauds, digital forgery identity frauds, infringements of authority, unauthorized access of data and privacy etc. are some of the examples that can seriously hamper the livelihood of an individual or a business. In addition to careful coordination on the part of the users, legal actions are also important in the aftermath of such occurrences.

E-Commerce Trade License in Bangladesh

E-Commerce is one of the fastest growing industry and trends in Bangladesh currently. Since last 5 years there are lots of e-commerce businesses have started their operation in Bangladesh. But mostly are operating only for Dhaka city and few businesses have started only in their city. It’s a good sign and definitely e-commerce will grow in coming days. Lots of people asked me if they need a trade license for their e-commerce business in Bangladesh. And the answer is “yes, of course”. So, you need e-commerce trade license in Bangladesh. Every business is required to have trade license in Bangladesh.

What is Trade License in Bangladesh?

If you are running a business in Bangladesh, you need a trade license from your local authority. No matter what types of businesses you are involved with. Trade license is the first and mandatory legal paper to operate any kinds of businesses in Bangladesh. So, you should get a trade license because it’s so easy. Without trade license you can’t –

• Open a bank account
• Can’t put any banner, festoon, leaflet, digital banner
• Can’t sign any agreement or contract with other businesses
• Other businesses won’t do business with you
• Rent any office space for your business

And most importantly you can’t operate your business legally without trade license in Bangladesh. So, it’s a good advice for you to go to your local authority to get a new trade license for your business.

What is E-Commerce business in Bangladesh?

E-Commerce stands for electronic commerce. Any kinds of transactions, selling or buying products online with or without having a physical office is e-commerce. To run an e-commerce business, you don’t need to have a showroom, an office space or any physical store at all. You can start and operate your entire e-commerce business online. You just need a website, smart phone or computer to process and manage your store and orders. In Bangladesh people are now getting engaged with online shopping brands. People love to buy their products without going to store. People in Bangladesh can now buy favorite dress, favorite products from Facebook, e-commerce website.

Get a trade license for E-Commerce business in Bangladesh

To get trade license for any business in Bangladesh is super easy. It was complex at a time before but now you will go through a smooth and managed process to get a trade license for your e-commerce business in Bangladesh.

Are you living in City Corporation area?

If you are living inside any city corporation area, you should go to your local city corporation office to collect the application form to get your e-commerce trade license. But most importantly I have tried to collect some more information for Dhaka North City corporation and Dhaka South City corporation.

Need help with your trade license?

Contact with me for legal advice and details procedures to start e-commerce business legally in Bangladesh

Are you living in another city?

If you are living in city which is not under any city corporation, you need to go to your local office of pourashava office, chairman’s office to collect the application for for trade license. In other words, you need to contact with your local authority. In addition, you can write your problems in the comment box below if you need help.

Are you living in village?

If you are living in any village, you need to go to your chairman’s office to collect the application form for your e-commerce trade license.

So, you want to start your business here in Bangladesh. If you face any difficulties, write your experience in the comment box below. So other can get an idea about your experience related to get a trade license for e-commerce business in Bangladesh.