Azam, M. S. (2007).

Implementation of B2C E-commerce in Bangladesh: The effects of buying

culture and E-infrastructure. Advances in Global Business Research, 3(1), 55-81.
Bangladesh 1
In pessimistic views, numerous constraints and hazards are inhibiting the growth and adoption of
B2C e-commerce in developing countries. Most e-commerce transactions occur between
customers and sellers in the advanced economies of the United States, Canada and Western
Europe (Montealegre, 2001). Experts opined that the B2C ecommerce operation is not viable in
Asian regions rather B2B e-commerce has the potentials to gain stakeholders acceptance in
respect of profitability and efficiencies in business.
Lack of telecommunication infrastructure, shortage of qualified human resources to develop and
support ecommerce sites, lack of skills among consumers needed in order to use the internet,
lack of timely and reliable systems for the delivery of physical goods, low bank account and
credit card penetration, low income, and low computer and internet penetration are the
challenges which inhibit the use of e-commerce (Anigan, 1999, Bingi ant et. al, 2000, Panagaria,
2000). Low income is most obvious inhibitors of transacting over the net. Another vital problem
is with culture. In many developing countries people with lower or fair income consider
shopping as social activity, and the face to face contact with seller is an important part of this
social custom which provides satisfaction as well as security (Hawk, 2004). Many constraints,
although acute in nature, have some solutions, but it has no direct solution, if people consider
shopping is a social activity, so face to face contact is must. In another way when consumers
make purchase decision, one shortcoming of internet is its ability to touch and experience the
product before purchase (Blackwel, Minard and Engel, 2001).
Looking at Bangladeshs different business sector it is evident that still there remains a vast
scope for development in the B2B sector (Times, 2005). B2B e-commerce is presently existent in
a limited scale in the countrys RMG and lather sector3. Limited accessibility to internet, poor
electricity network, limited affordability of computer and knowledge, inadequate legal and
regulatory supports, inefficient and traditional banking and financial support and payment
mechanism, lack of human resource for operating the technology smoothly, high internet usage

cost as well as security concerns in transaction are the inhibiting factors that made B2C ecommerce operation in Bangladesh impractical (Hossain, 2000, Lutfar, 2001, Azam and Lubna,
2005, Raihan, 2001, BTRC, 2000). However, the government of Bangladesh has given highest
priority in developing the countrys ICT sector in view of making high speed online connectivity
with the international community to utilize ICTs potentials in the countrys economic
development. The countrys national ICT policy reiterates the necessity of establishing
ecommerce environment in view of gaining economic potentials and emphasizes on formulating
appropriate government policies and strategies for facilitating e-commerce operation and egovernance (GOB, 1999).
Rapid growing numbers of internet users in developing countries make Bangladeshs initiative
towards online business imperative. Despite its development in ICT sector standing at lowest
level in south Asia and almost same in Asia, Bangladesh has developed optical fiber link inbetween its two big cities Dhaka and Chittagong and is going to establish submarine optic fiber
cable network with information super highway through Malaysia and Singapore under
SEAMEWE Project. The fiber optic network of BTTB5 is not in a position to meet the need of
other telecom operators under private ownership, unless they are upgraded and expended
(Ahmed, 2003). Bangladesh government recently passed national optic fiber cable guidelines to
admit private entrepreneurs involvement in providing internet connectivity to the interior
locations of the country (Star, 2005a). The govt. has also taken telephone authority deregulation
strategy allowing private operators to provide fixed land telephone connections while the mobile
operators are existent as market leader under private ownership. The above functions will help
provide high speed connectivity with a lower price in a competitive environment.
E-commerce implementation and adoption have been studied in different countries that
considered good numbers of diversified variables to be studied for contributing to the existing
literature of knowledge. Among many other variables perceived relative advantage of the ecommerce operations considered as the key driving force of ecommerce adoption (Kendal et al,
2000, Limthongchai and Speece, 2002, Sathye and Beal, 2001). Perceived Compatibility of the
technology with the existing value, norms and practice is another factor that influences the rate

of adoption of e-commerce and implementation (Kendall et al, 2000, Sathye and Beal, 2001).
Security in ecommerce operation has been given the highest priority in deciding whether to
operate e-commerce (Kendall et al, 2000, Sathye and Beal, 2001). The complexity in operating
online technology for communication, placing order and payment can make negative impact in
order to implement e-commerce (Kendall et al, 2000, Sathye and Beal, 2001). Existing legal
support, human resource and internet connectivity have the influence in implementing ecommerce in Bangladesh (Hossain, 2000, Azam and Lubna, 2005, Rahman, 2002). Low credit
card and poor delivery system are widely viewed as serious problem for B2C e-commerce in
developing country (Hawk, 2004). In Bangladesh context the evidence of academic research or
professional research on e-commerce is inadequate. A few research studies though be sited in the
country most of them are related to ICT adoption in Bangladesh, the fact proves the rationale
of the study.
Addressing the e-commerce adoption and implementation in Bangladesh we can refer outcomes
of the previous researches those were initiated to study personal computer or internet as ecommerce is highly computer and internet reliant. Perceived relative advantage and perceived
compatibility have considered as a driving force to the adoption of personal computer and
Internet in Bangladesh while the Perceived complexity of the innovation has been observed as
the negative force to adopt the technology in Bangladesh (Azam, 2004, Azam, 2005). However
the age of the user, his financial ability, and experience in ICT has been studied as the influencer
in studying the adoption of e-commerce as well as ICT adoption. The behavioral pattern of the
consumer, especially in developing as well as in least developed countries, has not yet been
considered as the vital factor to study e-commerce implementation.

2 Bangladesh
Par, D. J. (2003). Does this site deliver? B2B e-commerce services for developing
countries. The Information Society, 19(2), 123-134.
It is suggested that detailed consideration needs to be given to the ecommerce services offered at
these trading platforms. It is hypothesized that the types of services available may limit and
influence e-commerce implementation. In particular, it is argued that public Internet-based B2B
e-hubs will only reduce transaction costs and facilitate international exchange if information
provision is complemented by services that give buyers and sellers a low-cost means of acquiring
confidence that transactions will be completed successfully. These complementary services are
particularly important for trade between producers in developing countries and buyers in
developed countries. Drawing on data from an exploratory study, this paper presents a snapshot
of the B2B e-commerce services offered by e-hubs that were operational during the Spring and
Summer of 2001 in two sectors: agriculture/horticulture and garments/apparel. The analysis
indicates that the B2B e-commerce services available to user firms are influencing the structure
and completion of transactions in ways that may not be as effective in opening the doors to
global markets, for producer firms in poorer countries, as the rose tinted B2B e-commerce view
suggests.

Underpinning discussions about the potential for the public Internet and World Wide Web to
globalize commerce, is the notion that B2B e-commerce offers the hope of significantly
decreasing the transaction costs associated with trade across organizational and geographical
boundaries. According to this view, the adoption and implementation of ICTs facilitates a closer
integration of adjacent steps in the value-added chain, thereby allowing firms potentially to
reduce the costs associated with selecting suppliers, negotiating and fulfilling contracts, and
ensuring that contract terms are met (Malone et al., 1987: 484). This reduction in the unit costs
of co-ordination, it is claimed, will encourage firms to expand the number of transactions they
conduct across both organizational and geographical boundaries (Malone et al. 1987; Davidow
and Malone 1992; Benjamin and Wigand 1995; Malone and Laubacher 1998). Unfortunately,

this view appears to overlook the importance of the procedures and processes, as well as the
dynamics involved in transacting. It also is illustrative of a tendency, among some analysts, to
discuss ICTs and the Internet as arte facts or simple appliances, rather than as complex
processes of inter-networking made possible by a series of inter-linked computer networks, a
compendium of hardware and software, data flows, and human agents (Kling 1999; Par 2000).
The significance of the distortions that may arise from this techno-centric conception cannot be
underestimated. The failure to consider the processes and rules that underpin B2B e-commerce
can lead researchers and policy makers to overestimate the potential savings that may be incurred
while underestimating the new costs that firms in both developing and developed countries may
experience from participating in electronic transactions.
3 Bangladesh
Mohiuddin, M., Ayuba, B., Aliyu, I. A., Elavarthi, P., PrasannaRaravi, S., Timmanagoudar, N., ...
& Vaidya, R. Overview the E-Commerce in Bangladesh.
Inaroduction
Electronic commerce or e-commerce is a term for any type of business, or commercial
transaction that involves the transfer of information across the internet. It is currently one of the
most important aspects of the internet to emerge. E-commerce has grown rapidly Worldwide and
also in Bangladesh. At present internet services are available in Bangladesh. Its usage for ecommerce by Bangladeshi producers to expert as well as to access inputs will be dependent on
their willingness and ability to use this medium as well as that of the buyers of final products and
the sellers of intermediate goods and services. In Bangladesh, among the dimensions of ecommerce, there is a limited application and use of B2C e-commerce. But a significant portion
of total e-commerce websites are engaged in C2C e-commerce which is auction based commerce
between consumers to consumer. Other fields are not yet much developed in Bangladesh. There
are many reasons behind this one simple reason this country is not so developed and most of its
citizens are poor and uneducated. It is quite natural that there are few customers who is willing
and can shop in internet. It might take years to be developed in this sector in Bangladesh, but
there are evidence found that it is also growing rapidly and soon will reach at a prosperous stage.

Sait, S., Al-Tawil, K., & Hussain, S. (2004). E-commerce in Saudi Arabia: Adoption and
perspectives. Australasian Journal of Information Systems,12(1).
3 Saudi Arabia
The literature available on eCommerce adoption and diffusion in developed countries is quite
extensive and diverse. Numerous studies have been documented that focus on both B2B and
B2C domains. The extensive analysis available is not only based on major generic themes like
models, strategies, technology and social issues, but also covers specific issues like electronic
branding, security, trust, e-payment, performance measures and privacy (e.g., Cronin 2000;
Kumar et al. 2000; Plant 2000; Rajput 2000). However, interestingly, the literature documenting
eCommerce adoption and growth in developing countries is scarce and often simply anecdotal
(Travica 2002; Young 2003). In this section, we report on some of the recent studies in
eCommerce that have focused on developing countries.

In 1999 a study reported on e-commerce impediments characterizing Argentina Kenya, India,

and Armenia (Petrazzini & Kibati 1999). These included limited Internet accessibility, a lack of
competition in international telephone traffic that made access to the international network
expensive, a lack of intra-regional infrastructure, and a disproportionate penetration of the
telephone in the urban as opposed to rural, more populated areas. Another study which focused
on South Korea identified a major obstacle for eCommerce adoption lack of customer trust in
online merchants (Lee 1999). There is a fear that merchants might sell products with defects, and
that online payments cannot be recovered even if the product is not delivered. In central and
eastern Europe, online stores may have some design and infrastructure characteristics that are
less conducive to success in international e-commerce, such as longer server response time, less
inspiring aesthetics, excessive graphics and animation, and lower transactional capability
(Travica & Cronin 1996; Travica & Olson 1998).
China, with the highest population, still doesnt embrace ownership innovations (Clark 1999).
National networks have been developed through competition between two ministries, which
eventually merged into one. As of the writing of the study, B2B transactions had been recorded
in mainland China, while B2C systems were still being initiated. The impediments include
expensive access, lack of a tradition of remote shopping/selling, lack of trust in product quality,
and no provision for customers' recourse.
In 2002 a study was carried out that reported on limitations for B2B e-commerce in three
developing countries, namely Bangladesh, Kenya and South Africa. It was concluded that
Internet-based B2B ecommerce is not effective in reducing transaction costs or in providing a
gateway to global markets for regional enterprises. Furthermore, this e-commerce model has
only marginally altered the way in international businesses dealing in the garments and
horticulture sectors, which are these countrys main trade areas, deal with one another. The
reasons in this case are similar to those seen earlier. The conclusion drawn from these case

studies showcases a generic set of factors, the lack of which impedes eCommerce growth and
adoption - building trust, ground rules, information infrastructure and maximizing benefits by
seamless globalization (Dekleva 2000).
In the case of Saudi Arabia, there has been no study on the adoption and user perspectives about
eCommerce. There have been a few efforts that address the issue of Internet penetration in the
Middle East in general (Ghashghai 2002). This paper documents the first study working in a
broad framework of identifying uses and effects of Internet in the country.
4
Bangladesh
Rahman, S. M. (2015). Consumer expectation from online retailers in developing e-commerce
market: An investigation of generation Y in Bangladesh. International Business Research, 8(7),
p121.
The business of commercial transactions between and among organizations and individuals using
the aid of digital technologies is commonly regarded as E-commerce (Chaffey, 2007). Initiating
since 1995, e-commerce, (also called electronic commerce) has continued to receive proliferated
growth rates of over 100% in a year at the early days of Amazon.com (Laudon & Traver, 2007).
Till date, Amazon.com serves as one of the most prominent and successful online retail stores
which has had a transformational impact on e-commerce worldwide, serving as an epitome.
Their recent announcement of US $2 billion investment in neighbouring India accentuates the
opportunities or online businesses in South Asian region (Forbs, 2014).
In 2005, the overall Internet and e-commerce adoption rate was lower in South Asia than the rest
of the world (Kshetri & Dholakia, 2005). However, a change in this trail took place in the past 10
years with the number of Internet users and thus, the number of people engaging in e-business of
various sorts increasing at a rapid pace (Abbasi, Chandio, Soomro, & Shah, 2011). Recent
McKinsey report (2014) estimates that the number of global Internet users shall be between 500900 million by 2017 and this specifically includes some of the South Asian countries, with
Bangladesh as one of the highlights. This outcome echoes previous KPMG (2012) report on the
growth of IT sector in Bangladesh, especially since the year 2010 when its freelancer community

contributed around US $700 million towards exports. This has led to Bangladesh being visibly
consistent in top freelance work locations on sites such as oDesk, eLance, to name a few.
The usage of mobile internet is a key contributing aspect towards the prevalence of e-commerce
in Bangladesh. Following Table 1, 2 and 3 show the falling bandwidth costs in Bangladesh, cost
of mobile data for major mobile operators in Bangladesh and a mobile data price comparison
with countries with developed e-commerce market. Though the percentage of total Internet users
in Bangladesh has been deemed to be low compared to some other countries (Khan, Hossain,
Hasan, & Clement, 2012), the online population is rising due to falling cost of Internet
bandwidth. In early 2015, BTCLthe governing body of Tele-communication in Bangladesh,
decided to cut down bandwidth prices by further 33% in next year. Complementing that,
Bangladesh has approximately 36.50 million internet users (M. Z. Islam, 2014) along with a high
mobile penetration due to low costs and low calling charges.

5
Elbeltagi, I. (2007). E-commerce and globalization: an exploratory study of Egypt. Cross
Cultural Management: An International Journal, 14(3), 196-201.
Internet and E-commerce which have been responsible for continuing gradual removal of
barriers of language, culture, values, legal and national boundaries will play an important role in
globalization and accelerate international trade (Raman, 2000; Lee and Littlejohn, 2004). The
internet and e-commerce make use of smart cards to facilitate payment, doing of our banking
online, and a variety of other online services relevant to e-commerce, common for most western
citizens and potentially easy to use and useful among the majority of Arab consumers (67 per
cent) as indicated by some researchers (Aladwani, 2003; Lee and Littlejohn, 2004). However,
internet and ecommerce in a setting of globalization could mean many different things to
different people, because of cultural ways of doing things. In some conservative countries in
Arab world Internet has seemed a dangerous beast until now in other countries it just medium for
elite to use. Also there is a variation in how access is obtained. In several countries, the
government telecommunications monopoly is the only Internet Service Provider (ISP). In others,
including Egypt, Jordan, and Tunisia, there are multiple competing ISPs.
Bin et al. (2003) indicated that: most American companies today are so focused on their
domestic market that they do not pay any attention to the overseas markets. Nevertheless, ecommerce is global in nature and the international markets represent immense potential. Many

researchers highlighted that there is a significant cultural differences regarding online shopping
between different regions in the world especially between western users and others, i.e. Korean
internet users and American internet users (Park and Jun, 2003). Even among what we could
perceive as a common western cultures, researchers found differences in the way that people use
the Internet (Sagi et al., 2004). In addition to that when a comparison is made between the
Internet use among Arab and non-Arab states in general, it is seen that the Arab countries in
general are lagging behind where most of Middle East countries usage of internet are not Arab,
i.e. Turkey and Israel. Even more there are differences among Arab countries in use of the
internet, where most of the use is in the gulf states
(Aladwani, 2003).

Research Objectives
The aim of the research is to investigate the challenges of implementation of e-commerce in Bangladesh.
General objective:
To get experience in e-commerce practice, this will give us an opportunity to understand the electronic
transaction system and its limitations as well as the way to overcome them.
Specified Objective:
The specific objectives of my whole study are as follows:
1.

To fulfill the requirement of my B.B.A in Jagannath University.

2.

To examine infrastructural situation of the country to prosper electronic commerce system in Bangladesh;

3.

To learn various departmental operations like Web developing, E-commerce

To identify the prospects of E-commerce in Bangladesh

To explain E-commerce operations of Ajkerdeal.com
To identify problems related to E-commerce operations of Ajkerdeal.com if any
To make some recommendations to solve the problems

To explain the evaluation of e-commerce.

To find out the origins and growth of e-commerce

The objectives of present study are:

1. To describe the present status and facilitators of E-Commerce in India;
2. To analyze the present trends of E-Commerce in India;
3. To examine the barriers of E-Commerce in India.