Table of Contents 1. EXECUTIVE SUMMERY:............................................................................................ 2 2. INTRODUCTION....................................................................................................... 3 3. E-commerce in BD:.................................................................................................... 3 4. Different sites............................................................................................................ 5 5. BACKPACKBANG.COM.............................................................................................. 6 5.1 Features:............................................................................................................. 6 5.2 Services:.............................................................................................................. 6 5.3. Benefits:.............................................................................................................. 7 5.3.1. Its All Magic at the Back-end:............................................................................7 5.3.2. It's All about Having What You Want with Less Price:...........................................7 5.3.3. It's All about Making Someone Else Happy while You Earn for Your Effort:..............7 5.3.4. It's Mostly about Empowering People with the Power of Technology:......................8 5.3.5 It's Somewhat about Making the Barriers of International Shipping Irrelevant:...........8 5.3.6 It's about Connecting Global Community Organically, Serving the Economy Indirectly yet Profoundly:........................................................................................................ 8 5.3.7 It's about Passion:........................................................................................... 8 5.4 Challenges:.......................................................................................................... 8 5.4.1. Challenges of New Entrance:...........................................................................8 5.4.3. Challenges of Existing Facebook Groups:..........................................................8 5.4.3. Exchange Rate:.............................................................................................. 9 5.4.4 Tax Rate......................................................................................................... 9 6. Recommendation:...................................................................................................... 9 7. Conclusion:............................................................................................................... 9 8. References:............................................................................................................... 9
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1. EXECUTIVE SUMMERY: Backpack Bangladesh is a peer to peer e-commerce site which bring foreign product for Bangladeshi consumer. Backpack purchase product from Amazon, Ali-express, E-bay etc. Backpack started its journey with the slogan “Anyone can get anything from anywhere in the world”. Backpack wants to deliver foreign product to door to door for all Bangladeshis. Backpack bring any legal product from foreign country and products equal or under 21 inch. Backpack provide 500 taka reference bonus to increase their consumer market. A lot of article published about backpack in different online and offline newspaper like Prothom-Alo and Tech Crunch. Ycombinitor is the financing company of Backpack.
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2. INTRODUCTION E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-toconsumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail.
3. E-commerce in BD: Bangladesh is one of the large market in the world as population but the peoples are not well enough for online market yet. Since 1970 to 2000 can be said that Bangladesh was almost in the darkest in e-Commerce business. The peoples even never imagine for eCommerce. They just work in the computer for assignment for school, colleges and university or can be used in private organization or government. But it was very rare in the government project. Since 2000 the students just waked up and started a revolution with computer work in every department in the every organization and also it’s going to involve most of the government project too. The peoples are getting better and better in terms of time. Bangladesh is also going fast and like western or develops countries. The peoples are doing many things online like read newspaper and doing lots of out sourcing work and getting very good money and not only himself also giving good remittance to the nation too. The peoples are specially studying in the private universities and they are very good enough for the e-Commerce knowledge and uses development. This is very exciting that the private universities are also giving free laptop to every student and forcing them to jump and learn many things from online. This is also nice to see that they are doing online business and putting many things on their sites and selling them easily. Late 90s: E-Commerce started in Bangladesh in the late 90s. The earlier E-Commerce sites were actually gift sites targeted towards the Non-Residential-Bangladeshis (NRB) living in abroad. All the sites were based in abroad and had branches in Bangladesh. Year 2000-2008: During this period of time, the E-Commerce sector observed slow growth. There were few E-Commerce websites but there were no system for online transaction which was the first condition for E-Commerce. In addition, high cost of Internet and low penetration meant that few people knew about these sites. According to Bangladesh Bank, payments and transactions by credit cards were nearly Tk11 billion in June 2008; one of the lowest in the world. The country had only about 400,000 credit card holders at the end of June 2009. From 2008, things started to look bright as Bangladesh Bank took various initiatives including implementation of e-Payment Gateway. Year 2009: The real change came in 2009 when Bangladesh Bank allowed online payment in the country thus, officially opening up the E-Commerce sector. Another 3
major incident of 2009 was introduction of WiMax internet in Bangladesh. It became quite popular in the country. Year 2013: The year 2013 had been an important year in the history of E-Commerce in Bangladesh. First, Bangladesh Association of Software and Information Services (BASIS) and Bangladesh Bank jointly observed “E-Commerce Week” for the first time in the country, supported by ICT Business Promotion Council. From January 5 to January 11, there were four roundtable discussions, two seminars, one technical session, special awareness program at Dhaka University and a special promotional campaign at Bashundhara Shopping Mall. In February 2013, for the first time in the country, Computer Jagat, the leading ICT magazine of Bangladesh, under the supervision of Dhaka DC Office, organized the first fair on E-Commerce. The three-day fair took place from February 7 to February 9 at the premise of Begum Sufia Kamal National Public Library. The slogan of the fair was“Festival for buying and selling at your premise.” A total of 31 public and private ECommerce organizations showcased their products and services at the fair. Though first of its kind, the fair was a huge success attracting eighty thousand visitors. Computer Jagat also did live webcast of the fair which was seen by more than fifty thousand people in Bangladesh and abroad. Following the first ever e-Commerce Fair at Dhaka, Computer Jagat arranged e-Commerce Fair at Sylhet, Chittagong, London and Barisal with their partners and participants. Additionally, Bangladesh Bank gave permission to buy products and services online using international credit cards this year. Buying products and services from abroad using credit card is an important aspect of E-Commerce. (E-Cab, n.d.)
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4. Different sites Bikroy: Bikroy.com is an e-commerce website where you can buy or sell everything’s at all whole over the country. For local sell you can take it as the best platform. You can add your products review at more than 50 classes without any cost. Site authority observe all the advertisements to keep pace with best quality. Ekhanei: ekhanei.com is one of the renewed ecommerce website in Bangladesh to sell & buy different types of products by adding your classified advertisements without any cost. Even browsing this site from Grameen phone is completely free. It has also a smartphone app at android version. Beautystore: Beautystore is one of the dynamic ecommerce website engaged in importing of premium health and beauty products from abroad mostly UK & USA. All of its products are 100% quality assured, handpicked for best experience. Rokomari: Rokomari is one of the best Bangladeshi ecommerce site. The customer service team of rokomari.com can makes your online shopping very easy with a user friendly shopping interface. It is the sister concern of onnorokom group. BoiMela: Boi-Mela is an ecommerce site where you will find all kinds of bangla books.Instant it is online bookstore. You will find your favorite books from more than 10000 books of over 50 major publisher. Some of these publications inclue Seba, Shikha, Jagriti, Somoy, Madina Publications and more. Clickbd.com: Clickbd is one of the top ranked ecommerce site in bangladesh. You can buy and sell electronics, cars, clothing, digital cameras, and everything else on this largest ecommerce site. Ajkerdeal.com: ajkerdeal is the ecommerce site in bangladesh where you can .This site is the sister concern of bdjobs.com. Cellsbazar: Cellsbazar is also the safest and mostly convenient choice for buying and selling your different products all over the Bangladesh. It allows very simple manner without any registration and complicated process. Aponzone: aponzone is one of the reasonable pricing online platform in Bangladesh. It offers several types of products like computer, laptop, tablets, watches, books, leather items, sports items and so many. Here the payment getaway system is easy as you can use your debit, credit, visa, master card. Biponee.com: Biponee is the online platform in Bangladesh where customers can shop their favorite products at any time whole over the Bangladesh. The authority of this site deliver products across the country. It gives ultimate comfort and ease to the customers and make shopping easy and more convenient. (Best Online Shop Bd, 2010)
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5. BACKPACKBANG.COM Backpack is founded with a vision to provide every citizen of the world with a choice; the choice of buying organic, authentic, and cost effective products with minimum friction. Whether the product is state-of-the-art consumer electronics, exotic pashmina from the south-east, or even medication that are rare in some parts of the world and not so rare in others - backpack promise themselves to get those products to your doorsteps. We would like to reject the counterfeits, we would like to reject the almost-originals, most importantly, we would like to not pay the heavy expense incurred, most of which we deem to be superfluous. Help us make a better, more original globalized world. Backpack is a peer-to-peer platform that connects travelers and shoppers to give everyone access to all the products in the world. Within a week of launching the MVP, Backpack has received 66,090 hits from 84 countries around the world and 259 deals were being negotiated among the close to a thousand signed up members through the platform. Backpack will leverage the increasing 1.03 Billion travelers commuting in 195 countries and create a unified market free of distortion and externalities for the 7.15 Billion shoppers around the world As a consumer, you should have no problem identifying a business’s core values. In fact, it is a great idea for businesses to actually list out their core values and make that list readily available to the public. This will help the site’s content designers maintain a consistent tone in their content production as well as help consumers to understand the business’s “personality.” (Backpack, 2016)
5.1 Features: BackPack shows different product from different international e-commerce sites for example Amazon, Ali-express, E-bay. Shopper search for product through search bar. They find their desire product and add to card then proceed for payment. Once payment is done product will be ordered. Then seller send the product to traveler. Traveler receive the product then bring to Bangladesh.
5.2 Services: BackPack bring product from different international e-commerce sites in condition of delivery time is US in 5 days and product is not large than 21 inch. Backpack bring any product legal in our country. Any drag and alcoholic product is not allowed. Product reach in our door in 15-16 days. There is easy tracking system via website. Some services are: I.
Bring product from Amazon (Major Service): Basically all the variable product from amazon shows in backpack. In some rare case product doesn't show in backpack then shopper have to search via amazon product link. If product is being able and meets all the condition product will show otherwise it won't show. 6
II.
III.
IV.
Bring product from Ali-Express (Minor service): If customer choose any product from Ali-express as it's cheaper than amazon cause it's Chinese site and deliver product to USA in 5 days then shopper can ask for a manual request for this product with product link. Backpack employee will check manual requests and approve if possible to bring the product. Bring product from E-bay (Minor Service): If customer choose any product from e-bay as it's cheaper than amazon and deliver product to USA in 5 days then shopper can ask for a manual request for this product with product link. Backpack employee will check manual requests and approve if possible to bring the product. Bring product from other e-commerce site (Rare Service): In some case, some special product is only available in specific website for those kind of product shopper have to make a manual request and BackPack employee will review and approve the request if product is variable and meet all the conditions.
5.3. Benefits: 5.3.1. Its All Magic at the Back-end: The ingenious idea combined with creativity and passion of Fahim Masoud Aziz and Sakib Hasan Sauro has set a ground for frictionless shipping of products globally. The demand is tested. Remember how many people yearn for Jerseys, I-products, original books, medicines that are rare in your country and many more.
5.3.2. It's All about Having What You Want with Less Price: If you are a buyer, the message for you: Buy overseas, Pay less. Pay less works because no tax or tariff or shipping cost is included. Plus, you get original products with less price. You even get products that are either very expensive or not available in your country. Think Macbook Air. Think Nikon D700. Think about having first edition of your favorite Game of Thrones books that are being auctioned at eBay and you constantly gasp looking at them. What about your most favorite gunner's jersey being an Arsenal fan? All you need to do now is to find your product, then strike a deal with a carrier who is travelling to your city listed in backpack.com.
5.3.3. It's All about Making Someone Else Happy while You Earn for Your Effort: If you are a carrier, the message for you: Share your travel plans, Start earning money. Do you remember how many times you have been asked to bring an I-Pad, Google Nexus 7, or Amazon Kindle Fire HD for your friends? What about buying these products while you are abroad where prices are cheaper than your country market and selling them back to buyers matched through www.backpackbang.com Your benefit is that you can charge a "carrier price" since you are bearing the risk of shipping it. The beauty of the mechanism is that the price a carrier charges is negotiable. If a carrier charges unreasonably high price, the buyer can always choose another carrier, effectively applying the law of supply and demand. 7
5.3.4. It's Mostly about Empowering People with the Power of Technology: Just because you don't have anyone living abroad, it's not acceptable that you can't buy the product you really want. I remember wanting an original Poker chips set which wasn’t available in Bangladesh. Instead, we had to play with Carom pieces. For backpack, it works for both sides: a carrier charges a shipment price while delivering a product that a buyer really wants. Not only has a buyer paid lower price for a product which is backpacked but the carrier gets compensated too. It's a win-win situation for both sides.
5.3.5 It's Somewhat about Making the Barriers of International Shipping Irrelevant: FedEx, DHL, UPS-- contrary to all of these, backpack provides a cost-effective option to buy original products.
5.3.6 It's about Connecting Global Community Organically, Serving the Economy Indirectly yet Profoundly: Backpack creates a social medium of sharing, creating value deeply within by recognizing peoples' choices and helping them get what they want. Along the way, backpacking will create friends, well-wishers, often some miscreants too. Tackling those miscreants and fraud issues is backpack's biggest challenge for growth. Finding a solid sharing mechanism that will hold both the buyer and carrier accountable is critical to backpack’s growth.
5.3.7 It's about Passion: I remember talking to building co-founders of backpack in its building days: Fahim and Sauro. Their eyes were glimmering with hope and passion, allowing them to work tirelessly to create awesome stuff. These two creative persons are hedging their bet on you that you also will like what they created. Remember the bet is on you right now? Do you see things happening? (Backpack, 2016)
5.4 Challenges: 5.4.1. Challenges of New Entrance: Peoples nowadays are willing to purchase foreign products so there’s a challenge for backpack if they face new competitor. As foreign product importing is growing day by day so many entrepreneur may invest for business like backpack 5.4.3. Challenges of Existing Facebook Groups: There are many Facebook groups they purchase product for consumer from foreign country. They are a little challenge for backpack
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5.4.3. Exchange Rate: As backpack purchase product from US based country so exchange rate is a very important factor for backpack so higher exchange rate or increase in exchange rate is a big challenge for backpack 5.4.4 Tax Rate Increase in import tax rate is also another challenge for backpack. It will increase overall price.
6. Recommendation: I. II. III. IV. V. VI.
Increasing Traveler. Half Advance payment. Increase Order Area. Decrease Exchange Rate. Contract with international mailing services. Partnership with Airlines.
7. Conclusion: 8. References: Backpack. (2016, 07 16). Retrieved from Backpack: https://backpackbang.com/ Backpack. (2016, 07 16). Retrieved from Backpack: https://backpackbang.com/blog? id=9 Best Online Shop Bd. (2010, 05 25). Retrieved from Best Online shop Bd: https://bestonlinshopbd.wordpress.com/2016/04/03/top-10-e-commerce-sitesin-bangladesh/ E-Cab. (n.d.). Retrieved from E-Cab: http://e-cab.net/resource-center/bangladesh-ecommerce-sector/
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