BGMEA University of Fashion & TechnologyCourse title: Industrial Trade and commerce.Course Code: BUS3210.Presentation topic: Role of B2B e-commerce in export and import industry of Bangladesh.

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Brief History of E-Commerce

The Dictionary meaning of E-commerce is “The conducting of business communication and transactions over networks and through computers.” According WTO it is “production, distribution, marketing, selling and expedition of goods and services by using of electronically measures.”

World's first recorded B2C online home shopper was established where Mrs. Jane Snowball used the Gates head Tesco system to buy groceries in 1984.

B2B e-commerce•B2B e-commerce (also written as e-Commerce,

e-Commerce or similar variants), short for business-to-business, electronic commerce, is selling products or services between businesses through the internet via an online sales portal. In general, it is used to improve efficiency for companies. Instead of processing orders manually – by telephone or e-mail – with e-commerce orders can be processed digitally.

The differences between business-to-business (B2B) and business-to-consumer (B2C)

•Supply chains are distinctive for B2B transactions. They involve companies providing (sub) components or raw materials from one to another, and only one B2C transaction – the sale of the finished product to the end customer.

•For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single B2C transaction.

Categories of E- Commerce

B2B buyer characteristics

• Generally, B2B and B2C web stores both have search, navigation, detailed product information and personal account history pages.

• Therefore, B2B buyers often place large orders. B2B purchases are also characterized by recurring orders instead of single purchases.

• Because of that, companies make deals based on their monthly or even yearly demand

• They closely collaborate with each other, and each B2B costumer can have its specific prices for certain products.

B2B buyer characteristics •Decision Making Unit•Customer Specific price•Payment on Credit sales or LC.•Smart Shipment.•Repeated Purchases.•Long lasting relationship between consumer and manufacturer.•Buying as part of the job.•Buyers as part of an organization with a relationship defined by a

contract, terms and conditions.

Overview The E-Commerce In Bangladesh

•With the increasing diffusion of ICTs, more specifically the internet, the global business community is rapidly moving towards Business-to-Business (B2B) e-commerce also in our Bangladesh.

Overview The E-Commerce In Bangladesh•The buyers or importers gain a clear advantage when the Internet gives

them access to the global market, by which they can compare prices across regions, find out whether prices vary by order fragmentation, get awareness about alternative products

•Consequently, the sellers or exporters make sure that they are well portrayed in the cyber world through websites and portals. Like buyers, sellers also benefit from increased and more efficient access to the global market through the internet.

Emergence of E-Commerce• International organizations such as UNCTAD (United Nations Center for

Trade and Development) and WTO (World Trade Organization) have emphasized on the importance of e-commerce for developing countries over the last several years. UNCTAD has special programs to facilitate developing countries to transition into e-commerce. The WTO has also developed rules and guidelines for global e-commerce transactions.

E-Commerce in Different Sector in Bangladesh

• Ready Made Garments (RMG). • Banking sectors (Online Banking). • Online Shopping. • Web Hosting, Domain. • Online cards, gifts. • Oil and Gas sector etc. • Online Transportation System, Hotel Management and Tourism etc.

Advantages of E-Commerce in the Perspective of Bangladesh

The multidimensional activity of E-commerce which Bangladesh can be benefited in business sector, i.e.-

• Expansion of the era of Business. • Reducing of unemployment problems. • Reducing of communication difficulties. • Access to the international market. • Competition against exporting in other countries. • Business in round the clock. • Helps to enhance the knowledge about business.etc

Telecommunication’s Role in E-Commerce of Bangladesh

As per the National Telecom Policy, 1998, the telecom sector (Fixed line, Mobile and the Internet) is liberalized for private investment. Following the National Telecommunication Policy, the Bangladesh Telecom Act-2001 was enacted. In order to separate the commercial operations of Bangladesh Telegraph and Telephone Board (BTTB) from its regulatory functions, a separate Bangladesh Telecommunication Regulatory Commission (BTRC) has been established in January 2002.

Key developments of Internet

• The focus starts to build on the country developing into „Digital Bangladesh‟ by 2021 with this strategy providing a boost to infrastructure.

• Mobile internet services have been giving a much needed boost to internet access.

• Provide board band services, however, continue to struggle. • Rapid early growth in WiMAX services after operators launch. • BTRC prepares to open market for more VoIP operator licenses. • BTRC issued 34 additional IIG licenses in 2012. • Banglalion and Augere were permitted to upgrade their

networks to TD-LTE .etc.

Growth of e-commerceWorld wide

• There is no question that e-commerce has grown rapidly since the first users started to browse the worldwide web in search of goods and services. Today, sales realized over the internet represent a significant proportion of overall commercial sales. In 1991, the internet had less than 3 million users around the world and its application to e-commerce was non-existent.

• This year, global business-to consumer e-commerce sales are set to pass the US$ 1.25 trillion mark

Growth rate of E-Commerce in BD• Overall, the current trends and e-commerce

growth statistics can be seen in the following table.

• As is evident, the current growth rates, quarter-on-quarter, as of 2014 are already very high. Growth rates of over 30% quarter-on-quarter are not commonplace for most sectors in Bangladesh. The predicted growth rates for 2015 and 2016 are even higher and imply a persuasive case for more market entry and business expansion in this sector.

Constraints to E-Commerce in Bangladesh•Out of 64 districts, Internet services are available only in 6 major district

headquarters. BTTB is planning to gradually roll out an IP net work up to the 64 district headquarters. In January 2002, the internet facilities were extended to 12 districts.

•The project is running on very fast and today almost 40 plus districts are getting Internet facilities, within very short time 64 districts will be covered with Internet facilities.

Barriers of e-commerce in Bangladesh

• Minimum number of users of websites. • There are no other options of letter of credits (L/C) to conduct international

transactions.• Bangladesh dose not issue international credit card for cross border

transaction.• Poor telecommunication infrastructure. • Lack of investment in hardware and software. • Online banking connectivity is poor. • Absence of sufficient cyber law. • Very slow & expensive Internet services. • Lack of initiatives in taking e-commerce. • Lack of awareness at government level of e-commerce issues.

Future of e-commerce in Bangladesh

• Now a day’s use of technology in each and every sector has been very common. In this era of globalization we can hardily find any sector operating without using technology. It has made the whole glove a single village.

• The advancement of technology is a continuous process. In recent age has given birth to a digital age.

• Now the buyer and seller both have much power because of the massive use of many powerful technology as well as internet.

• For instance, BGMEA has actively deployed B2B e-commerce solutions for international RMG orders and procurement, as do several RMG companies

Conclusion The potential size of Bangladeshi e-commerce market and promising sign of

development in its ecosystem has resulted in some impressive valuations for some of the country's burgeoning e-commerce.

Import Export companies are no difference! Most export import

companies are using the Internet to augment customer base, tap into new markets, research competitors, find new products and evaluate country opportunities.

It will help to increase the revenue, expand international Clint base, Lower operating cost and better consumer service!

Thank you !!