Cross-border e-commerce potential needs to be tapped

Bangladesh's recent experience with e-commerce has shown the latter's great potential. The usefulness of e-commerce became more evident during  the Covid-19 pandemic. The enforced lockdowns for prolonged periods of time propelled the emergence of multiple e-commerce (e-com) sites and some of those have become household names. Today, people in the country are used to using e-com sites to purchase daily needs from groceries to acquiring fashion goods, electronics and a host of other products and services. The hectic lives of urban citizens in the country, coupled with endless hours of traffic congestion have provided the prefect ground for both consumers and sellers - to do transactions electronically (where payment is also made electronically using debit/credit cards or mobile financial services like Bkash, Nagad, etc.). Some e-com sites couldn't scale up and handle the increased volume of trade, but many did and flourished. However, fraudulent activities by a few e-commerce sites have dented the consumers' confidence.

It is sad to see that Bangladesh e-com sites are not being able to go international and take advantage of the huge cross-border e-com market', (CBEC). The hurdles are not insurmountable. A study conducted by the Dubai chamber of Commerce tells us that "the value of UAE e-commerce market is expected to reach US$9.2 billion in 2026." That is not all. Market information states that the two countries, Singapore and Malaysia together account for more than half the cross-border gross merchandise value (GMV) in Southeast Asia. The lesser, next tier markets include Thailand, Vietnam and the Philippines. Hence, this is a massive e-commerce market that needs to be tapped by Bangladeshi companies. As artificial barriers to cross-border electronic trade are coming down, it is time for the right policy guidelines be set up so that local companies can take part in the trade and flourish. Although, it is learnt that the draft CBEC policy is being finalised, concerns have been raised by stakeholders about the efficacy of it, given the non-favourable stance of the foreign exchange policy.

There exist differences of opinion between the ministry of commerce and the association of e-commerce entrepreneurs about roadblocks that are holding back the CBEC. These need to be addressed because there is no point in being left out of an annual multi-billion dollar global market where Bangladeshi e-com enterprises and entrepreneurs may take part and earn revenues. It must be remembered that overwhelming reliance on apparel export in an uncertain global economic climate could prove to be a serious Achilles heel for the country. It is time to rethink barriers and changing long-held ideas on foreign exchange, if it can kick-start new areas of business. That monetary policy has failed to create a dent in foreign exchange outflow shows the inefficacy of some policies that would do well with amendments so that formal trade, like CBEC, may flourish. Hence the present e-commerce policy needs to be rethought with the draft CBEC policy accommodating all stakeholders' opinions. There will always be pushback against letting relevant stakeholders have a say in what should or should not be included in policy. But in the event of not recognising legitimate concerns of entrepreneurs involved in the trade threatens to not address the problems the e-commerce association have put forward. Government policy must be in tune with the needs of those individuals and/or entities involved in e-com.