Desk Report
Oniket Research Group
Bangladesh’s electronic commerce sector has emerged as one of the most dynamic growth stories in South Asia. Driven by a young, increasingly connected population and the rapid expansion of mobile internet, the market reached an estimated volume of nine billion US dollars in 2024, with projections placing it at fifteen billion dollars or more by 2029. The compound annual growth rate for the sector stands at approximately 17.7 percent, making Bangladesh one of the fastest accelerating ecommerce markets in the Asia Pacific region. Yet beneath these impressive headline figures lies a set of structural and technological deficiencies that, if left unaddressed, will cap the sector’s potential long before it is fully realised.
The Mobile First Reality
Bangladesh’s ecommerce ecosystem is overwhelmingly mobile. Approximately 80 percent of all online transactions are completed via smartphones, reflecting the country’s first mobile digital trajectory. With over 123 million internet subscribers and a population in which more than half are under the age of 35, the consumer base is digitally engaged and growing. Platforms such as Daraz, Chaldal, Rokomari, and Pickaboo have established themselves as the primary online marketplaces, each serving distinct verticals from groceries to electronics and books. Social commerce through Facebook, which hosts over 50,000 ecommerce pages operated largely by small and medium enterprises, has also become a significant informal sales channel.
Electronics lead all product categories at nearly 24 percent of revenue, followed by hobby and leisure products at 20 percent and fashion at 19 percent. Mobile applications are increasingly central to consumer experience, with leading apps recording over one million active users and generating the majority of their orders through app-based channels rather than desktop browsers.
Payment Infrastructure: The Persistent Cash Problem
Despite the sector’s growth, the payment landscape remains underdeveloped. Cash on delivery accounts for approximately 75 percent of all ecommerce transactions, a figure that reflects both low consumer trust in digital payments and the reality that over half of the population remains unbanked. Digital wallets such as bKash and Nagad have made inroads, contributing around 11 percent of transaction volume, while credit and debit cards together account for just 14 percent. The unavailability of globally integrated payment systems such as PayPal further constrains cross-border commerce and limits the ability of Bangladeshi businesses to engage with international buyers and suppliers seamlessly.
The mandatory routing of all card transactions through the National Payment Switch Bangladesh creates a single point of vulnerability in the payment architecture and has drawn concern from international financial service providers about both security and competitive fairness.
Logistics and Last Mile Delivery
Logistics infrastructure represents another significant constraint. Irregular customs processes, port congestion, and inadequate road networks outside major urban centres create delivery delays and cost inefficiencies that disproportionately exclude rural populations from the benefits of ecommerce. Currently, only 3 in every 10 Bangladeshis shop online, and ecommerce activity remains heavily concentrated in Dhaka and a small number of larger cities. Rural consumers, who constitute around 65 percent of the national population, remain largely outside the reach of reliable ecommerce delivery networks.
Areas Requiring Urgent Improvement
Digital payment adoption. Expanding financial inclusion and reducing dependence on cash on delivery must be treated as a national policy priority. Incentivising digital wallet use, improving interoperability between payment providers, and revisiting restrictions on global payment platforms would significantly deepen the market.
Broadband penetration. Of over 123 million internet subscribers, fewer than 11 million use broadband connections. The remainder depend on mobile data, which is often congested and inconsistently priced. Investment in fixed broadband infrastructure, particularly in secondary cities and rural areas, would unlock the next wave of ecommerce consumers.
Consumer protection and trust. A wave of ecommerce fraud and platform collapses in 2021 severely damaged public confidence in online shopping. Stronger regulatory oversight, mandatory escrow arrangements for prepaid orders, and enforceable consumer protection standards are essential to rebuilding the trust that sustained ecommerce growth demands.
Cross-border ecommerce facilitation. Capital controls and cumbersome customs procedures continue to obstruct cross-border trade. Streamlining import regulations, enabling outward foreign currency flows for consumer purchases, and creating a predictable customs environment would allow Bangladesh to participate meaningfully in the global ecommerce economy.
Bangladesh’s ecommerce foundation is real, and its growth momentum is genuine. Translating that momentum into lasting economic opportunity requires closing the gap between a rapidly expanding consumer appetite and the infrastructure, regulation, and institutional trust needed to meet it.
