1.0.

Introduction

E commerce is the buying and selling of products and services by businesses and consumers through an electronic medium, without using any paper documents. E-commerce is widely considered the buying and selling of products over the internet, but any transaction that is completed solely through electronic measures can be considered e-commerce. E-commerce is subdivided into three categories: business to business or B2B (Cisco), business to consumer or B2C (Amazon), and consumer to consumer or C2C (eBay). Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. In current world, most of the businesses are applying this system to achieve their goals. In Bangladesh, the use of E commerce is increasing day by day.

2.0 What is E-Commerce

Electronic commerce, commonly known as e-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business.

3.0 Types of E-Commerce

E-commerce is the use of Internet and the web to transact business but when we focus on digitally enabled commercial transactions between and among organizations and individuals involving information systems under the control of the firm it takes the form of e-business. Nowadays, 'e' is gaining momentum and most of the things if not everything is getting digitally enabled. Thus, it becomes very important to clearly draw the line between different types of commerce or business integrated with the 'e' factor. There are mainly five types of e-commerce models. (See index 1) Those models are stated briefly below:

Business to Consumer (B2C) - As the name suggests, it is the model involving businesses and consumers. This is the most common e-commerce segment. In this model, online businesses sell to individual consumers. When B2C started, it had a small share in the market but after 1995 its growth was exponential. The basic concept behind this type is that the online retailers and marketers can sell their products to the online consumer by using crystal clear data which is made available via various online marketing tools. E.g. An online pharmacy giving free medical consultation and selling medicines to patients is following B2C model.

Business to Business (B2B) - It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers and sellers are both business entities and do not involve an individual consumer. It is like the manufacturer supplying goods to the retailer or wholesaler. E.g. Dell sells computers and other related accessories online but it is does not manufacture all those products. So, in order to sell those products, it first purchases them from different businesses i.e. the manufacturers of those products.

Consumer to Consumer (C2C) - It facilitates the online transaction of goods or services between two people. Though there is no visible intermediary involved but the parties cannot carry out the transactions without the platform which is provided by the online market maker such as eBay.

Peer to Peer (P2P) - Though it is an e-commerce model but it is more than that. It is a technology in itself which helps people to directly share computer files and computer resources without having to go through a central web server. To use this, both sides need to install the required software so that they can communicate on the common platform. This type of e-commerce has quite low revenue generation as from the beginning it has been inclined to the free usage due to which it sometimes got entangled in cyber laws.

m-Commerce - It refers to the use of mobile devices for conducting the transactions. The mobile device holders can contact each other and can conduct the business. Even
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the web design and development companies optimize the websites to be viewed correctly on mobile devices.

There are other types of e-commerce business models too like Business to Employee (B2E), Government to Business (G2B) and Government to Citizen (G2C) but in essence they are similar to the above mentioned types. Moreover, it is not necessary that these models are dedicatedly followed in all the online business types. It may be the case that a business is using all the models or only one of them or some of them as per its needs.

4.0 Emerging E-commerce in Business World

Now a day, as we can see the business world is slowly narrowing down and looking for effective business processes with less consumption of time and asset. E-commerce system brings the opportunity for the current business organizations. There are several reasons why max of the companies already going into electronic commerce and others are going to follow them. The growth and the growing uses of e commerce have more than doubled from 1998 to present (see index 2). The core reasons, according to the statistics are below: Exploitation of New Business: Broadly speaking, electronic commerce emphasizes the generation and exploitation of new .business opportunities and to use popular phrases: generate business value or do more with less.

Enabling the Customers: Electronic Commerce is enabling the customer to have an increasing say in what products are made, how products are made and how services are delivered (movement from a slow order fulfillment process with little understanding of what is taking place inside the firm, to a faster and rt1ore open process with customers having greater control.

Improvement of Business Transaction: Electronic Commerce endeavors to improve the execution of business transaction over various networks.

Effective Performance: It leads to more effective performance i.e. better quality, greater customer satisfaction and better corporate decision making.

Greater Economic Efficiency: We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time interaction) with the help of electronic commerce.

Execution of Information: It enables the execution of information-laden transactions between two ore more parties using inter connected networks. These networks can be a combination of plain old telephone system (POTS), Cable TV, leased lines and wireless. Information based transactions are creating new ways of doing business and even new types of business.

Incorporating Transaction: Electronic Commerce also inco11'orates transaction management, which organizes, routes, processes and tracks transactions. It also includes consumers making electronic payments and funds transfers.

Increasing of Revenue: Firm use technology to either lower operating costs or increase revenue. Electronic Commerce has the Potential to increase revenue by creating new markets for old products, creating new information-based products, and establishing new service delivery channels to better serve and interact with customers. The transaction management aspect of electronic commerce can also enable firms to reduce operating costs by enabling better coordination in the sales, production and distribution processes and to consolidate operations arid reduce overhead.

Reduction of Friction: Electronic Commerce research and its associated implementations is to reduce the friction in on line transactions frictions is often described in economics as transaction cost. It can arise from inefficient market structures and inefficient combinations of the technological activities required to make a transaction. Ultimately, the reduction of friction in online commerce will enable smoother transaction between buyers, intermediaries and sellers.

5.0 Components of E-Commerce

By having at least one or more than that can make a business or businesss operation part of ecommerce

Virtual storefronts: web sites with online catalogs. Content providing: gathering and use of demographic data. Electronic Data Interchange: the business-to-business exchange of data. Communication: using email or fax as media for reaching prospectus customers. Business to business buying and selling. Security management: managing the security of business transactions. Delivering digital goods to customers via internet, email. Taking payments using electronic cards.

6.0 E-Commerce in Bangladesh

The more internet and mobile communication coverage increased, the more E-commerce became widespread, though it is relatively a new concept. Its even newer in developing countries like Bangladesh. But it has the potential to alter the traditional form of economic activities. Already its effect is seen on various business sectors. Despite being an under developed country, selected segments of the Bangladeshi business community has embraced technology with reasonable success. Starting in early 1990s, internet in the country has witnessed a phenomenal growth, and has made quite promising moves towards e-commerce. For example- The central bank (Bangladesh Bank) gave the green signal for the e-commerce transactions in Bangladesh in 2009. Following the beginning of the e-commerce era in the country, Dutch Bangla Bank (DDBL) launched IPG named Nexus-Gateway in 2010 and BRAC Bank, in the same year. This gave interested e-merchants of Bangladesh to get connected and receive payments from the buyers credit or debit cards (such as MasterCard or Visa) for their goods and services

In June 2013, Bangladesh Bank launched National Payment Switch, a common platform for the country's commercial banks for electronic payments, which is going to revolutionize ecommerce in Bangladesh.

Aside from international market, local businesses are also moving towards e-commerce. Mobile Phone Companies (e. g. Flexi load, GP Bill Pay Services); Banks (e.g. Online Banking), Shopping Malls ( e.g. Buying and Selling using Credit Card), hotel and ticket bookings are a few of them.

7.0 Impact of E-commerce in the Economy of Bangladesh

Impact on Marketing

In Bangladesh, the cost of delivering information to customers over the Internet results in substantial savings to senders when compared with non electronic delivery. Major savings are also realized in delivering digitized products versus physical delivery. Customer service can be greatly enhanced by enabling customers to find detailed information online. Also, intelligent agents can answer standard e-mail questions in seconds and human experts' services can be expedited using help-desk software.

Impact on business organizational structure

Rapidly progressing E-Commerce is forcing companies of Bangladesh to adapt organizational structure that includes highly trained IT professionals. To experiment with new products, services and processes for more efficient operation of business. Again, new technologies require new organizational approaches. For instance, the structure of the organizational unit dealing with E-Commerce might have to be different from the conventional sales and marketing departments. That is why people working in those departments are also needed to be well trained in required technologies. These things together are changing the traditional organizational structure of businesses.

Impact on products

With spread of e-commerce, some products are now delivered in dual form. One on the typical physical medium and the newer is via electronic delivery. Music and books are now very much common in electronic delivery. Again, because of e-commerce, packaging off the products adopted electrically readable bar codes extensively. To complement electronic payment processing most of the shopping malls are using bar code readers to electronically process the sales receipt.

Impact on Finance

E-commerce has brought a great impact in our finance system of Bangladesh. Using ATM machine, people now can bank at any time that changes the customers' financial lives and shake the foundations of financial systems.

Impact on Education

There is a growing need for It professionals due to spread of e-commerce in Bangladesh. This has caused the launch of several training centers that train candidates for international certifications from leading vendors like Microsoft, Cisco, Oracle etc. These on the other hand caused change in delivering study materials. Most of the courses that are offered by the the vendors include online study materials for training. This means students are now getting a significant part of their study from electronically delivered materials. Online learning systems are now available in Bangladesh in which people can take higher study.

One significant impact is also seen in academic fees processing. Universities are not taking admission fees through mobile phones. Candidates for government jobs pay their registration fee for BCS exams via mobile phone network credit that they get from recharging mobile phone account.

Impact on Transportation

The use of the Internet to provide sell-side e-commerce has been widely adopted in the transportation in Bangladesh. Some of the transportation companies offer its customers the ability to log onto its Web site to make bookings, and to track and trace shipments.

8.0 Top E-Commerce Businesses in Bangladesh

There are several websites and electronic business in Bangladesh emerging faster and expected to grow into the international level soon. About some of the e-commerce business, is discussed below:

Rokomari.com: This website is fully on new released books as well all the books from the publishers around the country. The system is easy and made only for the book readers. The core business process here is simple: the buyer has to order a book through online and the book will be automatically delivered within 2 business days and then the payment must me made.

Clickbd.com: Another famous website for e-commerce. This website is the most visited online market of second hand as well as intact goods and services. Bangladeshi people put up their materials which they needs to sell and through website, the buyers contact them. This was a nice idea to connect all the potential buyer and seller around the country. The job of the site is just to create a virtual marketplace for the people and they will do the rest upon themselves.

Desco.or.bd: It was too hard and time consuming process to pay the bills in person. But now, the process is much more easier. The initiatior was Desco (Dhaka Electric Supply Company) who started the online billing system. By this process, no person has to go to the bank, stand in the long que and waste time for a 2 minutes job. Now it is possible to just click once and pay the bill online.

Bkash: The most emerging e-commerce now turning the whole country into a digital nation is

this Bkash, a BRAC bank electronic payment system. This brought the idea not to transect the hard money but the virtual coins. It is hard to pay someone instantly from Dhaka to Natore, but now, through Bkash, anyone can send money or collect from any Bkash outlet.

9.0 Major Constrains for the growth of E-Commerce in Bangladesh

Though the E-commerce is rapidly growing in our country but it would have been possible to make the pace even faster. But there are some regulations or obstacles for which e-commerce is not growing rapidly as those are growing in other third world nations. The major constrains are:

1. Inadequate internet and telephone connections in Bangladesh

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Though it seems like the networking process in Bangladesh is so smooth, but actually that is not. The major constrain for the emerge of e commerce lies in the riddle of the internet connection and telephone networks in the country. The telephone network works good in the urban area but as long as it goes to the sub rural or rual, the connection becomes horrible. Secondly and most importantly, the internet connections are not yet available greatly in our country. The cost of internet is high and the technology is backdated. While the world is moving with high speed internet, our country goes in the classic dial up internet equivalent system.

2. Lack of encryption law that precludes acceptance of digital signature There are not such law or regulations according to the online or virtual payment. The necessary steps taken by the govt is not enough to ensure the security of the virtual currency being transected. The user or buyer or seller over the internet remains anonymous because of the weak information collection system by the internet service providers. So if any wrong goes with the transaction or fraud occurs it is likely to catch or trace the digital footprint or signature. 3. Bangladesh does not issue international credit cards for cross border transactions In recent days, people are claiming to get online credit cards which works through the boundary of the nation. Like paypal or other payment system is not allowed yet in our country by the govt regulations. Without those it is too hard to carry on the businesses with people outside the country. 4. Lack of technically efficient workforce. No doubt, our country lacks skilled online workers. The workforce or the people are too focused on the brick system instead of the click. Very few of the total internet users know how to earn through internet and how to find jobs.

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10.0 Conclusion
With the development of the Internet, the ability to send information is now incredibly fast. Companies have realized this fact and have used the Internet as a tool to expand their businesses. E-commerce, or electronic commerce, is a way to conduct minor and major business transactions online instead of going into a store. It provides convenience for people who would rather be shipped an item from a store instead of going to the actual store to purchase it. For major manufacturing businesses, it helps them to purchase materials that they will need to make goods or provide services at sometimes lower costs and without the need of having to speak to someone directly. Since the Internet is constantly active, there is no closing hour when businesses or people cannot purchase from a company or person selling goods on an auction site like Ebay. Thus, E commerce is increasing production by eliminating wait time of ordering production materials or services and increasing profits by being able to continue selling products 24 hours a day, 7 days a week.

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Index 1 Interconnection between different types of E-Commerce

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Index 2

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