E-commerce is rapidly expanding in Bangladesh, unlocking new trade opportunities that are particularly beneficial for Micro, Small, and Medium Enterprises (MSMEs). By utilizing business-to-business (B2B) and business-to-consumer (B2C) e-commerce platforms, Bangladeshi enterprises can reach international markets more efficiently, overcoming traditional trade barriers such as high intermediary costs and logistical challenges. This transition from traditional trade methods to digital platforms not only enables businesses to reduce costs but also improves their overall competitiveness in the global marketplace​.

The adoption of digital technologies within the ready-made garments (RMG) sector, a key industry in Bangladesh, highlights the transformative impact of e-commerce. By selling directly through digital platforms, manufacturers can bypass conventional intermediaries, which enhances profit margins and allows them to retain a larger share of their sales revenue. This streamlined approach not only improves efficiency but also diversifies their customer base beyond domestic borders. As a result, manufacturers can capitalize on international demand and tap into new markets that were previously inaccessible​.

Additionally, the growth of Bangladesh’s IT sector is bolstered by e-commerce. The country has witnessed a substantial rise in exports of digitally delivered services, including software development and IT-enabled services. Between 2019 and 2022, Bangladesh’s computer service exports increased by an average of 31% annually, demonstrating the effectiveness of digital trade in driving economic growth and creating employment opportunities in the technology sector.

Government initiatives such as the “Digital Bangladesh” strategy focus on expanding ICT infrastructure and digital skills, which are crucial for facilitating e-commerce growth. By improving internet connectivity and promoting digital payment solutions, the government aims to support the country’s digital economy, ensuring that more Bangladeshi businesses can participate in international trade through e-commerce​.

Despite these advances, challenges remain. Limited digital infrastructure in rural areas and regulatory barriers hinder the full integration of Bangladesh’s MSMEs into global e-commerce markets. Addressing these issues is essential for expanding e-commerce’s impact on the Bangladeshi economy​​.

In conclusion, e-commerce presents Bangladesh with a dynamic pathway to enhance its global trade presence. Continued investment in infrastructure, regulatory reforms, and digital skill development will be vital for leveraging e-commerce to its full potential, ensuring inclusive and sustainable economic growth. The collective efforts of the government, private sector, and civil society will be essential in realizing the full benefits of this digital revolution.

Source: Digital Trade for Development Report | World Trade Organization