Policies on e-commerce operations, complaints this month

The government has decided to draw up policies on the operations of e-commerce firms and complaint settlement by this month as it looks to pave the way for the expansion of the fast-growing sector.

The decision was taken at the first meeting of the newly formed digital commerce consultative committee yesterday.

Md Hafizur Rahman, director-general of the WTO Cell and also the convener of the committee, presided over the meeting, which was held virtually.

"The draft of the policies is ready. We will organise a seminar this month where we will discuss the policies with stakeholders. We will finalise the policies on the basis of the recommendations," said a senior official of the commerce ministry who attended the meeting. 

In a circular on Monday, the commerce ministry said it has established the committee to help the sector reach its potential.

The meeting decided to bring e-commerce under trade licence norms. An e-Commerce Complainant Cell would be formed through the coordination of the committee and the e-Commerce Association of Bangladesh (e-CAB) to protect the rights of consumers, said the association in a press release.

"This is a good move and it would help establish coordination in the sector," said Muhammad Abdul Wahed Tomal, general secretary of the e-CAB, about the formation of the committee.

The committee includes representatives from the Export Cell, the FTA Cell, the Administration Cell, the IIT Cell and the DTO Cell of the commerce ministry, the Export Promotion Bureau, the Bangladesh Trade and Tariff Commission, the Registrar of Joint Stock Companies and Firms, the Office of Chief Controller of Imports and Exports, the Directorate of National Consumer Rights Protection, the Business Promotion Council, the National Revenue Board, the ICT Division, the Posts and Telecommunications Division, the central bank, the e-CAB and the Business Initiative Leading Development.

The committee would work to implement National Digital Commerce Policy 2018, attract investment and support e-commerce firms to secure loans from banks and non-bank financial institutions.

It would identify supports that would take the sector forward and the risks and obstacles facing the sector and take measures to remove them.

Safeguarding the rights of consumers, putting in place secure payment systems and improving delivery system would also be its focus.

The consultative committee would make recommendations to formulate policies on cross-border retail e-commerce and take initiatives so that such exporters can send out products legally.

Bangladesh's online business industry is worth more than Tk 10,000 crore and has been growing at about 50 per cent annually, according to the e-CAB.

After the coronavirus reached the shores of Bangladesh, people's perception about e-commerce changed and the use of e-commerce has accelerated in recent months. More and more people are now buying things online.

The exact number of e-commerce firms in Bangladesh is hard to get by.

The e-CAB has about 1,300 members. There are more than 1 lakh Facebook-based entrepreneurs.

Some local groups have begun their e-commerce ventures to reach out to customers during the pandemic. In Bangladesh, three types of e-commerce firms are prevalent: business-to-business, business-to-consumer, and consumer-to-consumer.

The committee was formed at a time when the sector is going through a transformation as the pandemic forced people to shop online and companies to sell online.

Zahid Hussain, a former lead economist of the World Bank office in Bangladesh, said steps have to be taken to integrate the vast number of cottage, micro, and small industries spread across the country.  

They face challenges in marketing their products even during normal times and their profits get squeezed because of the middlemen, he said.

"The integration can help producers get fair prices, which would, in turn, help them grow further and create more jobs." 

He said other countries such as China have successfully integrated their cottage and micro firms through e-commerce. "We can study the success stories and formulate our strategies."

Internet infrastructure has to be improved to take the sector forward and the projects related to technological up-gradation have to be implemented quickly, Hussain said.

He emphasised on quality regulations so people did not end up being cheated.

"Because of the anonymity, we may not get the delivery of the products we see on the pages of the e-commerce platform. Then where do we go to have the grievances addressed? These are needed to help the market function properly."

Bangladesh's e-commerce market is expected to reach $3 billion by 2023 on the back of a digital foundation laid down by the government and a young and tech-savvy population, said Statista, a German research firm, last year.