Consumers spent 7.45 per cent less on e-commerce purchases using cards in April compared to March, according to Bangladesh Bank data, as entrepreneurs blame the persistent dollar crisis and stubbornly high inflation for hurting growth.
In April, total e-commerce spending through cards reached Tk 15.89 billion, down from Tk 17.17 billion in March.
Bangladesh Bank data shows e-commerce transactions have fluctuated in recent months: Tk 15.85 billion in October 2023, Tk 16.22 billion in November 2023, Tk 15.63 billion in December 2023, Tk 16.48 billion in January 2024, and Tk 15.55 billion in February 2024.
E-commerce in Bangladesh relies on debit and credit card transactions.
In April, the number of card transactions for e-commerce purchases also declined, falling to 4.98 million from 5.38 million in March.
Stakeholders said high inflation rates and the ongoing dollar crisis caused the recent fluctuations in e-commerce transactions using cards.
Still, they expected further growth in both the number and volume of transactions, citing the recent boom in the e-commerce industry after a string of scams.
The country's thriving online shopping community, large young population and widespread internet access have made it a promising market for global e-commerce giants.
A recent study highlights Bangladesh's potential for substantial growth in e-commerce transactions, attributing this trend to the exponential rise in internet usage.
Projecting a consistent 10 per cent quarterly growth rate in recent years, the study forecasts a bright future for the industry.A 2016 UNCTAD B2C E-Commerce Index reveals Bangladesh ranks among the top 10 economies for the gap between predicted and actual online shoppers.
This statistic reinforces the country's significance in the global e-commerce landscape.
Jahangir Alam Shovon, executive director of the e-Commerce Association of Bangladesh (e-CAB), said e-commerce transactions through cards are not growing consistently due to the current higher inflation and dollar crisis.
He noted delays in deliveries of some import-related products because of the dollar crisis.
"The country's e-commerce market size currently stands at Tk 450 billion, with an expected reach of Tk 500 billion by year-end 2024," Mr Shovon said. He said daily deliveries across the country currently reach 1.0 million.
Mr Shovon added that the growth of e-commerce has been slowing since 2022.
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