ecommerce business in bangladesh

How to start e-Commerce business in Bangladesh

Concept of E-Commerce Business:

E-commerce business is a system to buy and sell products and services through electronically using computer and internet. Basically the whole business is operated through E-commerce website. Customers can be reached to the products and services easily from their home or office and review the products and purchase using their convenient payment system. However, one of the biggest challenges of conducting an online business is making sure that the customers trust client’s website. To be a successful online store, clients need to instill trust in customers. Online business needs to provide a strong framework for trust and be able to engender trust amongst its users. Trust and loyalty is promoted through the use of a secure payment system. However, in order to create a secure payment system, first have to convert the business into a site where e-commerce can take place and where the customers can purchase the client products and/or services with ease.

Goals and Objectives:

The main goals and objectives of e-commerce business are to offer products/services to customers with secure payment system. The e-commerce site have to be designed perfectly with secure shopping and payment systems to that customers can trust the site and service offered. Offering billing system, on time delivery system, payment system, return policy, privacy policy are the most important factor to sell products and service online.

Shopping Cart:

The Shopping Cart is a script which makes e-commerce site live and support all the parts of the site offering system. The better shopping cart contains powerful script, comfortable back end to control products, shipping, secure payment, order and billing. It also should contain TAX integration system to calculate Tax.

Supply Sourcing:

Supply source is one of the most important factors to run e-commerce business. So, at first should take special care to find the right and reputed sources with their good quality products and services that will make the customers happy.

Delivery System:

On time delivery system is also one of the most important factors. It makes customer happy and make them to be returned to the site again. So, we should take special care of on time delivery system.

Customer Sourcing:

Profit will be made after selling products and or services to customer. Main target is to make healthy customer list to generate business leads. No matter the customer is small or big giant should be noted with importance. As much sourcing of customers can be generating, profit will be generate potentially.

Market Research:

Researching targeted marketed is one of the most important key to success. Before starting e-commerce business, should review the market situation, the demand of people, environment of the business track, climate of the business situation as well as needs to follow the statistics and business volume of the subjected track. As per deep review and market research, it can be saying that e-commerce business will be a leading business in recent era.

Marketing Plan:

To generate sales lead, marketing plan should be strong enough to run e-commerce business. Before going for marketing, needs to collect all information, specification and value of the products as well as supplier contract should be completed at the back end to offer best price quotation of products/services to customers. Both online and offline marketing should be cared to generate sales leads. Physical offline marketing is the normal practice to generate sales leads, and in this modern age, online marketing like internet and email marketing should be cared to increase huge sales leads as well.

Operation Plan:

Organized operation is essential to run successful e-commerce business. A designated team will operate the business and will take care of every part of the business for smooth operation.

For the first time, we have to place Ad on local portal in Bangladesh and Singapore. Also there have a plan to invest for advertisement in Google Adwords to get generates sales lead.

Management Team:

Management Team will be responsible to manage and operate the entire business including finance, operation, marketing and sales. Management team will be the key personnel to take or change any decision to run successful e-commerce business.

Financial Plan:

Financial Plan should be taken care by the Management Team and smooth investment flow (if needed) to continue and make alive the business.

Items, Products and Services to indent:

Items and products list for initial e-commerce purpose and this will be amended and expanded on demand:

  • Garments
  • Fashion Ware
  • Furniture
  • Electronics Items
  • Handicrafts
  • Jute Products
  • Plastic Products
  • Home Appliances
  • Kitchen Appliances
  • Baby Items
  • Toys
  • Clocks and Watches
  • Dry Food
  • Frozen Food (Optional)
  • Books and Magazines
  • Movies and Musics
  • Beauty Care Products
  • Shoes
  • Jewelry
  • Software and Games
  • Accessories
  • Stationary
  • Antiques
  • Arts and Posters
  • Sports Items
  • Computer, Laptop, Tab
  • Computer Accessories
  • Mobile and Accessories

I have a supply chain connection with manufacturers in Bangladesh. I have some garments show room and manufacturers from where I can get advantage to show their products in c-commerce site with reasonable price for a valid time. Also I have some electronics importers (Laptop, Mobile, Computer, Accessories) connection. They import brand new and used products from China, Taiwan, and Hong Kong. So, I can arrange those products from them adding 15~30% profit for our business to sell. Moreover, I have contacted with some furniture manufacturers and they make world class and modern furniture. Also I have a plan to increase supply chain in Bangladesh. Furthermore, in future, I have planned to arrange our own brand products for our website.

Tools, Legal Papers and Resources to run:

General Requirement:

  • Office Space (Rented)
  • Furniture (Chair, Table, Power Cable)

Tools and Equipment:

  • Laptop (High Configuration to operate scripts, website and sales lead)
  • Faster Internet Connection
  • New Mobile Number
  • Website with own email server
  • Printer
  • Scanner
  • Camera
  • Stationery

Legal Issues:

  • Permission from Joint Stock and Companies
  • Trading License
  • TIN (Tax Identification Number) (for company and board of directors)
  • ERC (Export Registration Certificate)
  • VAT Certificate
  • Bank Account

Agreement:

  • Agreement with Office space owner
  • Agreement with Courier Services (Fedex and Sundarban)
  • Agreement with products suppliers

Essential Resources:

  • Business Plan and Overview
  • Market Research Report

Initial Cost:

Initial cost for the subjected project is as below (This is approximate cost):

(The amount is in BDT and also will be changed as per the proportional size and structure of the projected company.)

Sl. No. Item Unit Additional Cost Total Cost
1 Office Space Rent (Per Month)
2 Furniture
3 Computer (Laptop)
4 Data Entry Persons/ Modarator
5 Internet Modem
6 Internet Bill (Per Month)
7 Mobile Phone (Set and Number)
8 Printer Machine
9 Scanner
10 Digital Camera
11 Domain and Hosting (for every year)
12 E-commerce Script
13 Payment Gateway (8 Gateways)
14 Website Template
15 Company Registration (Proprietorship)
16 Trade License
17 TIN (Company)
18 ERC
19 VAT
20 Company Registration (Limited) Additional Cost
21 Bank Account
22 Other Cost (For emergency)
23 Marketing and Advertisement
24 Products
Total Cost: 0 0

Note: Additional Cost will be calculated at the time of final form of the company, first time Total cost will be needed to form the company.

Profits & Benefits of E-Commerce:

Quality and Commitment are the first issue to run successful e-commerce business and profit is its normal sequence. Profit will be expected at least after Six (6) months from starting the business. Management should be calculating this five months’ cost at the time of investment. Profit cannot be generated on or before this time duration, but profit expectation should not be count on this time period.

Target Sell Volume:

After one year, we have target sell volume is US$ (to be calculated based on invested amount).

Conclusion:

Review and research is required before starting the e-commerce business and after a final positive research report the business can be run.

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