5 Challenges to Start E-commerce Business in Bangladesh

Challenges to Start E-commerce Business in Bangladesh

5 Challenges to Start E-commerce Business in Bangladesh

Now-a-day e-commerce business is getting more popularity in Bangladesh. At the same, you have to face some challenges to start E-Commerce business in Bangladesh.  Most businesses around the world have already turned up online due to its increasing and widespread use of Information Technology.  As the online business refers to e-commerce, it has moved into developing countries like Bangladesh as well.

That’s why there is an e-commerce business in Bangladesh and it’s growing day by day. Not only they serve alike other business house but their payment systems are also similar. But, Paypal and the lack of customers who are ready to use debit/credit cards for payment against purchases is the main problem faced by e-commerce companies in Bangladesh.

On the other hand, it’s not enough in a country of 160 million people has only 5.0 million debit cards and less than 1.0 million credit cards are issued. Although only 1.0 percent of the debit card holders use their cards through POS machines or online, the remaining 99 percent activate them at ATMs only. That’s why it’s still in a dormant state of the e-commerce business in Bangladesh.

An Overview of E-commerce Business in Bangladesh

In the past 10 years, thousands of business organizations have gone online. It was possible due to the realization of the importance of the Internet for the exchange and distribution of information. Business organizations may be able to tap into this new business modality to offset their operating costs with the rise in e-commerce activities over the Internet.

And Bangladesh induces to be connected with information superhighway with the Exponential growth of the internet population and utilization of its potentials. As the trend, size and volume of transactions are varied; hype exists among different stakeholders. However, it’s not the way that comes with roses when you’re in the real world. And it’s typically faced with respect to marketing the product, fighting competition or finding suppliers as the challenges of a startup business.

Top 5 Challenges to Start E-commerce Business in Bangladesh

When they launching an e-commerce business in Bangladesh, there are a lot of issues that retailers face to acknowledge. But, you can sell just about anything and make crazy money when back in the day. As it’s now and access to the product was limited, the competition was minimal, technology wasn’t as affordable. But, technology is now affordable as China is opening up to the world. Well, let’s know top 5 challenges to start an e-commerce business in Bangladesh despite much potential.

#1.Drop shipping

If you want to launch your own online store, at first glance, drop shipping is the quickest way. It’s either the process of directly shipping the product from the manufacturer or distributor to the end-customer without having to stock them yourself for the uninitiated. Since you only have to handle the website operations and marketing, for the most part, this strategy is extremely cost-effective.

Despite being cost-effective, it’s tough to build a sustainable business out of this strategy. There is no way to know if the products being delivered to the customer are of the same quality as the one you paid for as you do not test and ship the products yourself. And there is always a possibility for counterfeit products to get mixed in the inventory you sell according to the experts.

Besides, as the products you ship may contain parts like batteries that may be a part of a safety recall, this can sometimes is a safety hazard. It’s equally committed to quality as you while it’s a hard work to find out a drop shipper. And as per Bangladesh aspect, it’s harder than any other neighboring countries, like India.


You’re still responsible for the safe delivery of your products if you’re only reselling products from other manufacturers. You’ll find some challenges here like-

Damage in transit

If someone finds a damaged transit from your site then you’re responsible for that. Packaging the product in such a way that no damage happens during transit is a great challenge.

The experience still gets flipped when this customer gets a damaged product, no matter how good the customer experience is during the buying process. Although packaging may add to your shipping costs, it’s an expenditure that is well worth the investment.

Transit losses

They often underestimate the number of times your package could get lost in transit those who are getting into the e-commerce business for the first time. Especially, if you deal with an international audience then it’s true.

As the postal network is not reliable in many countries, the excise duties are often imposed on international shipments. This way, a product becomes more expensive than the original price.

#3.Inventory management

As the largest consumer goods companies in the world struggle with, demand planning is an area of supply-chain management.

And improper inventory management can make or break your business for a small-time retailer. Because their technology is limiting them or they’ve hired the wrong partners/agencies to help them manage their projects, some online retailers may face growth challenges.

So, those who like to achieve growth must be built on a good technical foundation.  Cutting inventory costs, improve marketing efficiency, reduce overhead, reduce shipping costs and control order returns, the online retailers must always find ways.

That’s why they should find the right-

  • Right shopping cart solution,
  • Inventory management software,
  • Email software,
  • CRM systems,
  • Analytics etc

Related: E-commerce Marketing Plan That Works Well in Bangladesh

Apart from these, it may also limit your growth while hiring the wrong partners or agencies to help you implement projects or oversee marketing campaigns.

#4.Consumer fraud

As they further reduced due to consumer fraud, a lot of e-commerce stores operate on wafer-thin margins. And it’s the thing, which is surprisingly quite commonplace. The costs in pursuing these cases of consumer fraud are huge so a lot of small businesses choose to write this down as a loss instead according to a victim.

Let’s see how it works:

  1. While a customer makes a purchase on your website
  2. Waits until you ship the product to them

Once the delivery is complete-

  1. They report the transaction as fraudulent and in most cases,
  2. The banks side with the customer and in this way the fraudulent happen.

#5.Attracting and hiring the right people

Although online retailers may have visions and aspirations, one true fact remains. And that’s they need the right people to help them carry out their desires. In order to achieve desirable online growth, attracting the right talent is a key factor. And it plays an even bigger role while having the right leader.

As the employees like to work for companies that care about them and their future, you should have a sense of purpose is key. And consider getting your name out within the online community by-

  • Attending e-commerce conferences,
  • Speaking at events,
  • And networking