The Internet is clearly among information technologies that create significant impact on the day to day circumstances of all relations of society (Foster cited Porter 1997). Internet also represents an almost limitless potential for associational life (Healy cited Porter 1997). E-commerce is such kind of technology and process that creates an ease process in the general lifestyle of the people. E-commerce generally refers to the use of the internet in marketing, payment, exchange, and delivery of goods and services (Hossain 2000). The purpose of this paper is to demonstrate the Future of the E-commerce of Bangladesh regarding the current situation and background of E-commerce, as well as some issues related to the overall situation in Electronic Exchange systems. Ecommerce can help an organization to create competitive advantage and to be more responsive. To face the various challenges and overcome the changing business structure, Bangladesh should also use E commerce effectively. Here is the detail analysis of the overall situation of E-commerce in Bangladesh for the Future.
2.0 ABOUT E-COMMERCE
In short, E-Commerce is the business in online, through the electronic system, like Internet or World Wide Web. Turban et al. (2000) demonstrated E-commerce as an emerging concept that describes the process of selling, buying, or exchanging of products, services, and information through the computer networks including the Internet. On the other hand, Kalakota and Whinston (1997) defined E-Commerce from communication, business process, service, and online perspectives. Due to the availability of the internet globally, exchange of transaction between buyers and sellers has been fueled by the growth of E-Commerce (Laudon and Laudon 2004).
3.0 BACKGROUND OF E-COMMERCE IN BANGLADESH
3.1 Emergence of E-Commerce: Past Situation
The Computer was used first by Atomic Energy Center, Dhaka in 1964, when first mainframe computer came in Bangladesh. The Internet emerged late in Bangladesh, with UUCP e-mail beginning in 1993 and IP connectivity in 1996. By July 1997 there were an estimated 5,500 IP and UUCP accounts (IDRC 1994). E-Commerce was first emerged in 1970 only for the purpose of Electronic Fund Transfer (EFT) and in 1990 E-Commerce was emerged commercially. From that time, E-Commerce has been growing in Bangladesh, but not in a high pace as growing in the developed countries because of some infrastructure and legal problems and some other issues discussed later.
3.2 Current Situation of E-Commerce
Bangladesh had 450,000 internet users in 2007, 45.09 million mobile phone users In October 20, 2008. More than15, 000 people are connected in "Face book". All the districts headquarters have cyber cafes. Youth, more than 35% of the total population gives Bangladesh an edge or power to choose e-commerce. [International Telecommunication Union (ITU) Report]. Currently, the following sectors are using E-Commerce in Bangladesh: Education, SME sectors, Banking sector, Shoe industry, Online shopping, Web hosting, domain, Online gift, cards, Oil and gas sector, Auction site, etc.
4.0 FUTURE OF ECOMMERCE IN BANGLADESH
Electronic Commerce or Electronic Business made lots of progresses with more than a hundred million people worldwide having access to the Internet Connection. But Interactive selling capabilities can only be anticipated and we still are at the beginning of explosive growth (Morath 2000). Future of E-Commerce in Bangladesh can be suggested from the few classification:
B2C E-Commerce
B2B E-Commerce
B2G E-Commerce
4.1 Classification of Recommendation
4.1.1 B2C E-Commerce
B2C ecommerce would not be used much in the near future in Bangladesh effectively Because of low per capita income, lack of infrastructure and proper legal environment and trust between business and consumers. B2C for cross border trade is also limited moreover factors will discourageB2C such as difficulties in accessing international credit cards, restrictions on foreign currency remittance, informal payment and delays at customs clearance even for small value and quantity items.
4.1.2 B2B E-Commerce
B2B E-Commerce is highly emerging in Bangladesh because of the already existence of Ready-made Garments (RMG) Industry. Some individual producers have already posted a website which would enable them to seek information about potential buyers and raw material suppliers. However, if Bangladeshi producers are unable to embrace transfer of payment and other features of ecommerce, countries that have developed such systems will take the business opportunity.
4.1.3 B2G E-Commerce
Because of government buys goods and services from the private sector, it could invites tenders by offering 'Request for Proposal' (RFP) and other relevant documents on-line. Reduction of time costs, corruption and the lengthy bureaucratic procedures as well as increasing transparency would occurred by on-line Transactions involving information collection, obtaining various governmental forms, registering activities.
So the government needs to work out a realistic e-commerce law ensure the reliable internet connection for successful e-commerce business, it should also collaborate with the commercial sector, which has flexibility and potential for accepting new technologies.
Future Recommended Sectors
Future sectors should be recommended to use E-Commerce as the most profitable and cost effective exchange system to ensure competitive advantage. i) Public Banks: ecommerce is already exists in banking sector in our country but most of them are private so public banks should embrace e commerce. ii) Software Industry: Government could invest on software and hardware industry. iii) Hotels: In our country only a limited number of hotels have websites. then it comes. iv) Retail Business and shop: Retail business and shop should use ecommerce. v) Education: public and private universities and colleges should open website.
Suggested Future Supportive Frameworks
Banking & Finance:
Lack of access to trade financing, has constrained Bangladesh's export expansion and high interest rate ceilings on export loans. Dependency on LC to conduct international transactions and few credit card users exist and Restriction on issuance of international credit cards also prevails. Foreign counterparts get wrong signals and they think that Bangladeshi businessmen are unable to make speedy payments through international credit cards because of Lack of internationally accepted credit card facilities.
Related Rules and regulation:
Lack of cyber law and encryption law that prevents acceptance of digital signature and IT (Electronic Signature) Acts should immediately be implemented. Still wide spread pirated software is used in our country. The maximum business laws and regulations of Bangladesh are outdated coming from subcontinent rules.
Infrastructure:
Too few telephone connections. BTTB has restrictive pricing and regulatory strategy on ISPs and its monopoly over long distance and international voice traffic remains protected until 2000 and 2010 respectively (NTP98). This has been a consistent obstacle for the growth of e-commerce. Internet services are directly dependent on the telecommunication infrastructure of a country which is characterized by poor level of penetration, high access cost and a lengthy waiting period in our country.
Voice over Internet which is a proven important catalyst in the promotion of e-commerce, is prohibited in Bangladesh; there is lack of hardware and software investment and Lack of technically knowledgeable personnel with minimum web user.
Trade & Commerce Issues
Conducting business at the Chittagong port is comparatively more expensive because of frequent strikes (locally known as hartaals) and arbitrary work stoppages by the trade unions.
Definitions of deductible business expenses are strict and not clear. Tax system is not client friendly, appeal procedures are lengthy, high Interest rate on export loans and high corporate taxes exist resulting in widespread tax evasion. Customs clearance and procedures continue to be burdened with delays and informal payments.
4.3.5 Governance Constraints
Poor governance has an indirect effect on e-commerce development. Bangladesh has a knotty problem of poor governance which has been manifested in the form of continued active involvement of politicians and public officials, in adopting unfair business practices collusion with the private sector so institutions become weak and legal and regulatory reforms are difficult to update and implement.
High cost of doing business characterized by bottlenecks, bureaucratic red tape and corruption make the efficiency gains from e-commerce becomes mute. Small domestic market, poor infrastructural facilities, weak governance and poor law and order conditions are the main reasons for poor (FDI) in Bangladesh
5.0 CONSTRAINTS AND RECOMMENDATIONS
5.1 Major Constraints
There are some major constraints regarding the implementation of E-Commerce in different sectors and areas of Bangladesh. A list of specific constraints to e-commerce that policy makers can address in the short and medium term is summarized below.
There are too few telephone connections available.
There is not adequate strong independent regulatory body for the telecommunication sector.
There is also the lack of adequacy of encryption law that precludes acceptance of digital signature
Strong dependence of Letter of Credit exists in conducting international transactions
for cross border transactions, non-issuance of international credit cards exist.
rate ceiling of Interest on export loans occur.
5.2 Recommendation for the future development and implementation
The following recommendations for the future development and implementation of E-Commerce in Bangladesh are mentioned as below:
In order to compete in the highly competitive export market easy access to credit and a well-developed financing mechanism is essential
Companies should introduce of electronic documents.
A physical signature is necessary to make any contract valid in the eyes of the law (Evidence Act (The Negotiable Instrument Act, 1881; Revised up to 1999)
EFT (Electronic Fund transfer) should be introduced By Government, Bank, household, retail business and other business to be competitive.
CCG(credit card get way )should be established, it is a server that makes online credit card transaction safe( Skinner,2005)
BGMEA can play a significant role in creating awareness among business associations and organizations about the benefits of e-commerce.
Government should modify and update the existing laws of commerce and additional laws should be enacted or include because there are no specific legal frame-works of international or national laws for e-commerce.
The government should make a realistic and time relevant business law and it must be worked in teamwork with the private sector
Bring an end to BTTBs monopoly and Establishment of the Bangladesh Telecommunications Regulatory Commission (BTRC) as independent of governmental control and political influence.
Allow Voice over Internet Protocol (VoIP). Abolish the provision of obtaining permission from the Ministry of Posts and Telecommunications (MOPT) and bandwidth should not be limited by the VSAT operating licenses
Suggestion of establishing an independent regulator, the Bangladesh Telecommunications Regulatory Commission (BTRC) (The NTP98, enacted in 1998).
Government should introduce of Pre-shipment Inspection (PSI) agents and the Green Channel to promoting speedy movement of goods. Fines and penalties on PSIs for breach of rules and regulations should also be increased.
Further modernization and improved monitoring systems of the Custom authorities is needed.
Interest ceilings on export loans offered by commercial banks should be reduced or removed.
Simplification of court procedures should be introduced and administrative and institutional constraints should be removed in settling disputes.
For successful application of e-commerce political commitment to improve governance is essential
Establishment of cyber cafes to allow wide access to Internet should be realized and encouraged by Government and private initiative.
Government should try to increase growth of FDI because Ecommerce and FDI are likely to reinforce each other.
Government should publish documents and publications including budgetary information on the Web.
Government should offer short courses at training centers such as the Public Administration Training Center (PATC) to teach government officials on the benefits of e-commerce.
6.0 CONCLUSION
E-Commerce is used to promote business-to-business services, consumer services, and consumer and industrial products via the World Wide Web and the direct marketing from a service provider, retailer, manufacturer, or some other intermediaries to a final user is involved with it (Cateora & Graham 2007). In Bangladesh the Information Technology (IT) revolution has been too notable to predict its future growth and relevance of e-commerce to Bangladesh becomes imperative. There are several issues that Bangladesh Government needs to consider in order to have harmonization. This paper suggests that in order to continue with the changing business scenario that Globalization has brought and to be linked with every corner of the world Bangladesh is trying to embrace Ecommerce.
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