Bangladeshi consumers are increasingly turning to online shopping, with e-commerce transactions through cards showing a steady rise in recent months.
This trend mirrors the increasing popularity of online shopping due to its convenience plus affordability, as online purchases save time and offer competitive prices.
Central bank data shows a 5.61 per cent month-on-month increase in card-based online purchases in January this year compared to December 2023.
Consumers spent over Tk 16.50 billion on various products and services in January -- up from Tk 15.63 billion in December.
This follows a similar upward trend observed in previous months.
In November, card spending for online shopping reached Tk 16.22 billion, surpassing October's Tk 15.85 billion. September saw spending at Tk 14.48 billion, while August recorded Tk 14.80 billion, exceeding July's Tk 14.26 billion.
Stakeholders anticipate a continuation of this growth, with both the number and value of transactions expected to rise further. This, they say, will help recover the fragile consumer confidence after a series of e-commerce scams started unfolding in 2022.
The country's thriving online shopping community, large tech-savvy young population and widespread internet access make it an attractive market for global e-commerce giants.
A recent study notes Bangladesh's potential for substantial e-commerce growth, citing the country's remarkable rise in internet usage as a key driver.
The study -- based on consistent 10 per cent quarterly growth in e-commerce transactions over recent years -- predicts a promising future for the industry.
This optimism is further supported by the UNCTAD B2C (business to consumers) E-Commerce Index 2016, which ranked Bangladesh among the top 10 economies for the gap between potential and actual online shoppers.
The statistics further underscore the country's position as a significant player in the global e-commerce landscape.
"Branded and high-value items such as refrigerators, mobile phones and subscriptions like Netflix are contributing to the rise in card-based e-commerce transactions," said Jahangir Alam Shovan, executive director of e-Commerce Association of Bangladesh (E-Cab).
However, Shovan said recent growth has not met expectations due to escalating inflation and the cost-of-living crisis.
Besides, some entrepreneurs face challenges importing products due to the dollar crisis.
Shovan suggests that offering a wider range of products and services could encourage more online purchases.
He said mobile financial services (MFS) offer unique advantages to customers compared to traditional bank cardholders.
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