COMPLETE OVERVIEW OF STARTING AN E-COMMERCE BUSINESS
COMPLETE OVERVIEW OF STARTING AN E-COMMERCE BUSINESS
BANGLADESHI E-COMMERCE COMPANY FORMATION
E-commerce is one of Bangladesh’s most rapidly expanding fields and trends. Since 2015, a large number of e-commerce enterprises have started functioning in Bangladesh. However, they largely serve Dhaka, and just a few firms have begun in their city. This is a promising indicator, and e-commerce will undoubtedly grow in the coming years. Many individuals come to CLP to see if they need a trade license or a PLC for their e-commerce business in Bangladesh. And, of course, the answer is “yes.” Every firm in Bangladesh must obtain a trade license, and you may finally decide to start your own PLC for your e-commerce venture.
IN BANGLADESH, YOU MAY START AN E-COMMERCE BUSINESS
Bangladesh is entering its own economic benefits, according to the report, with the proportion of young people in the next 25 years set to be the greatest in the country’s history. And this is a perfect chance for Bangladesh to take advantage of e-potential commerce’s by establishing a successful e-commerce ecosystem that would revolutionize the country’s economic landscape. With favorable policy and government commitment, another Asian neighbor, China, has already demonstrated that e-commerce can rapidly become one of the economy’s main drivers.
The phrase “e-commerce” refers to the purchase or selling of commodities, products, or even services through the Internet. E-commerce transactions range from the obvious, such as online retailing, online media sources, and online shopping, to the more crucial, such as digital payment, online banking, and even government operations. We’ll focus on the information you’ll need to launch an e-commerce business in Bangladesh in this post.
BANGLADESH’S E-COMMERCE BUSINESS MAJOR CATEGORIES AND TYPES
In terms of e-commerce in Bangladesh, there are three types of e-commerce:
- Digital products oriented: These internet firms operate legally in the same way as the previous two, but the items or services they provide are purely digital.
- Customer-focused: These internet firms are focused on providing services to customers, whether it’s between businesses or regular individuals, or vice versa.
- Product-oriented: These internet businesses deal with actual and physical commodities or products via digital media.
WHAT ARE THE MOST COMMON E-COMMERCE TRANSACTIONS IN BANGLADESH?
These online purchases are typically completed in one of six ways:
- Business to Business (B2B): “Business to Business” transactions include two or more firms doing business with each other, with the ultimate customers rarely involved.
- Business to Consumer (B2C): This is a business paradigm in which companies sell goods or services directly to customers. Consumers are increasingly looking for and purchasing things online, as well as arranging financing, shipping, and receiving digital items such as applications, as well as receiving after-sales services. Online transactions, often known as e-retail, are included in B2C e-commerce (or e-tail). Reduced operating expenses, enhanced marketing, internationalization, customer happiness, knowledge management, and other benefits may be achieved by developing B2C networks. Bangladeshi e-commerce takes off and quickly shifts to B2C.
- Customer to Customer (C2C): The term “customer to customer” refers to agreements established directly between consumers.
- Customer to Firm (C2B) Transactions: A Customer to Firm transaction occurs when a customer provides items or services to a legal business.
- B2A (Business to Administration): B2A refers to transactions between businesses and governmental or administrative agencies.
- Customer to Administration (C2A): Transactions between ordinary persons and government entities are referred to as customer to administration (C2A).
IN BANGLADESH, THE PROCEDURE FOR STARTING AN E-COMMERCE FIRM IS AS FOLLOWS
The method for establishing an E-commerce firm in Bangladesh is totally dependent on the type of the business.
- Individual businesses: If your online business is based on a Customer to Consumer (C2C) model and you just wish to deal with someone over the internet, you won’t need any formality. If, on the other hand, you are the only owner of a firm and actively offer products or services through a website or page, you will require a valid trade license and correct E-TIN setup.
- Companies or Associations: If your preferred business model is Business to Customer (B2C), and you want to establish a company or association to sell your goods or services in Bangladesh, the laws currently in effect in Bangladesh regarding companies, partnerships, or associations, among other things, will apply to you when establishing your e-commerce business in Bangladesh.
- Purchase of a domain name and intellectual property is another key step in getting started in the E-economy. Having a legitimate domain, trademarks, copyrights, and other intellectual property protection will help you protect your intellectual property, among other reasons.
- A typical Bangladesh internet company begins with the creation of a website or a public page on a social media network. The to-be-sold commodities or services are then cataloged on the Customers’ website or browse through page. Incorporating a secure method of payment is the final step in this initial phase, and there are plenty of options in Bangladesh for your own e-commerce site.
- Payment methods: The majority of online retailers use a cash-on-delivery system, which, of course, eliminates the necessity for a digital payment option. On the other hand, a big portion of all mobile banking in the nation is presently done through services like Bkash, Rocket, Nexus Pay, and others, but you may also take other services like credit or debit cards, PayPal, Money Gram, or other Financial technology ways. The challenge is to choose something that is readily available and has the greatest number of users.
In Bangladesh, only a few papers/documents are required to set up a payment gateway system:
- Company Trade License
- Company Logo
- Website URL
- Bank Details
- Signature & Seal
- Owner’s NID & Photograph
LEGAL IMPLICATIONS FOR OPENING AN E-COMMERCE BUSINESS IN BANGLADESH
- Customer protection laws is critical in Bangladesh’s e-commerce industry to build consumer trust. A holding fund method described in the ‘E- Payment’ section may be set in the merchant’s bank account; customers must use true identity for transaction reasons.
- The relevant merchant shall safeguard the privacy of the consumer’s communication, preferences, visit information, personal and financial data. There has to be a clear definition of what constitutes a service agreement between a merchant and a consumer, and what constitutes a violation of that agreement that will result in legal action.
- In Bangladesh’s e-commerce industry, a Community Conscious Driven Policy must be implemented. From country to country, the socioeconomic situation fluctuates. Business and customer expectations must be factored into our current norm.
- It is necessary to develop a code of conduct for businesses and customers. Within the e-commerce industry in Bangladesh, any type of digital communication must not breach conventional social and commercial decorum.