e-commerce sector incurred losses 17b

Bangladesh’s e-commerce sector incurred losses of BDT 17B during a twelve-day-long internet blackout.

Small businesses, heavily reliant on online sales, were hit the hardest, with many unable to track inventory or deliver goods.

The e-Commerce Association of Bangladesh (e-CAB) said this information in a press conference was held at their auditorium in the city on Wednesday.

e-CAB president Shami Kaisar said that an estimated 4 lakh to 5 lakh small entrepreneurs who rely on online businesses have been severely affected, major online retailers faced significant operational challenges.

E-commerce leaders anticipated that the overall loss would be much greater, which, they said could go up to BDT 1400 crore at least.

The president said 100 percent of e-commerce companies are unable to operate their business due to the ongoing unrest.

Presenting a report, e-CAB president said the size of the country's e-commerce market is Tk8,000 crore and its contribution to the gross domestic product (GDP) is 0.2 percent.

She further said the e-Commerce Association of Bangladesh has 1,500 members and 1.25 lakh workers involved in the sector. Of these, 26 percent are women and 74 percent are men.

e-CAB president informed that a large part of F-commerce businesses losses minimum BDT 600 Crore, e-commerce logistic sector losses at least 100 Crore and e-tourism sector losses at least 300 Crore.

Then, e-Cab President Shomi Kaiser demanded 15% corporate tax be waived for e-commerce for this year.

''Even if we are not given incentives, we want bank loans with a grace period of one year at two percent interest during this period," she stated.

The e-Cab President said there are opportunities for five lakh jobs in the e-commerce sector. About 95 percent of e-commerce companies have not been able to operate during the curfew.

Even those who have worked on a limited scale have not done business, instead, they have done humanitarian work, she added.

Entrepreneurs who have bank loans demanded to extend the repayment period by at least 06 months.

The association also requested to provide loans on easy terms, temporarily waive VAT on logistics and digital marketing, waive on trade license renewal fees.

They also urged the government to contact Facebook for refund or re-advertisement of active ads on Facebook.

Every day 80,000 families in the country received services from e-commerce. Due to the novel coronavirus outbreak, only 10 to 15 percent of e-commerce companies are operating.

Among others, e-CAB Senior Vice President Md. Sahab Uddin Shipon, Vice President Syeda Ambarin Reza, General Secretary Nasima Akhtar Nisha, Assistant General Secretary Khandaker Tasfin Alam, Finance Secretary Asif Ahnaf, Director Shahriar Hasan, Md. Saidur Rahman Saeed, Md. Ilmul Haque Sajib and Arnab Mustafa were present at the press conference.