Cross-Border E-Commerce: An Opportunity for Bangladeshi Products to Enter the Global Market

The definition of trade in today’s world is rapidly changing. There was a time when entering the international market required substantial capital and a complex export structure, and they had to rely heavily on foreign agents. Once, international trade was all about large factories, huge exports as well as complicated banking processes. But along with the development of the internet and digital technology, that reality has been changed entirely.

In today’s era, even a small entrepreneur can sell products outside Bangladesh using Shopify, Etsy, Amazon, or a website they have developed themselves. By now, selling products from one country to another via online has become one of the key driving forces behind global trade. At present, business is no longer restricted by geographical barriers.

Such a change is highly significant for the context of Bangladesh. Over a long time, our ready-made garments sector has been a key driver of our export structure. The large international brands and buyers have been a key target for our exporters. Our current export system is mainly designed for big industries. As a result, entrepreneurs who are small or driven by women, artisans, and businesses that run on a district level often face many barriers when trying to make an entry into the international market.

Anyway, cross-border e-commerce is breaking this dependency. It creates a space through which small and medium entrepreneurs can directly reach international buyers. Nowadays, a new entrepreneur or even a housewife can build their own brands using an online platform or social media page and sell products to customers who live in Europe, North America, or the Middle East—something that we couldn’t have imagined even a few years ago.

This transformation is supported by recent trends in global trade. Global commerce has got a new dimension with the expansion of platform-based digital trade and online services. Particularly, digitally deliverable products and services are increasing rapidly and opening a major opportunity for developing and underdeveloped countries. In this context, if Bangladesh can take proper preparation, cross-border e-commerce can become a strong pillar of our export sector in the near future.

Bangladeshi products are unique and diverse, which is a major strength in this sector. Garment products, handicrafts, leather goods, eco-friendly jute products, home décor items, local fashion brands, and even organic food products all have a huge demand in the foreign market. In the global market, sustainable and ethically sourced products’ demand is growing rapidly. Bangladeshi jute products and handmade items can attract international buyers because they carry a story, a uniqueness, and values.

However, besides all these opportunities, the real challenges are also there. One of the key problems is that the process is too complex. Entrepreneurs often have to go through procedures similar to large-scale exports even for small shipments, which discourages them greatly.

Lack of coordination is also one of the reasons since customs, courier services, banks, and regulators are not digitally well connected; thus, both time and cost increase. There is still no clear structural support for entrepreneurs outside Dhaka regarding how they can become ready for export.

Here, digital monitoring is also still weak. The digital visibility and coordination we have among the government, banks, and customs are not yet sufficient enough. So, it is one of the biggest requirements that we need to maintain international standards. Product quality, packaging, branding, and customer experience—all of these will have to meet the global standards. Competition does not entirely depend on price in the global market; credibility and brand image are important too.

For Bangladesh, logistics and delivery systems are still a major challenge. Costs of  international couriers are relatively high, delivery takes long, and in most of the cases, tracking and return systems are limited too. But, in global e-commerce, fast delivery and an easy return policy are key factors to gain customer satisfaction. Developing infrastructure in this area is extremely important.

International payment systems’ limitations have also become a major barrier for entrepreneurs. For small entrepreneurs, international payment gateways, currency conversion, and foreign transaction rules often become complicated. As a result, many have to depend on third parties that reduces their profit margins and limits control over their brand.

India has already addressed this issue by launching e-commerce export hubs, where customs, packaging, and shipping support are all available in one single place. They’re using the post office network as a micro-export support system, and for payment and shipping, they have introduced digital monitoring. Most importantly, India has created separate regulations for small digital exports without requiring LC. This has made entry into the international market much easier for small entrepreneurs than before.

So, a well-organized and practical framework is really important for the context of Bangladesh. However, Bangladesh is not starting from zero. We already have digital foundations like Asycuda World and Bangladesh Single Window. Effective coordination with payment and postal services is what we need now.

Our proposed “Digital Cross-Border Trade Facilitation Framework” can be developed on five key pillars.

First of all, a digital payment framework, where a licensed digital payment system for small exporters can be developed under the Bangladesh Bank.

Secondly, micro and small exporters can follow easier compliance procedures based on digital invoices and proof of orders.

Thirdly, the establishment of e-commerce export hubs in Dhaka, Chattogram, Sylhet, Rajshahi, and Khulna is necessary. Packaging, labeling, and customs support will be available in one place there.

Fourthly, there is postal export facilitation, where district-level post offices can be developed as export gateways so that entrepreneurs from remote areas can also easily make international shipments.

The fifth is a support ecosystem that works on return policies, re-import facilities, district-based training for women entrepreneurs, and access to get loans easily.

Thousands of small entrepreneurs will be able to enter the formal export system if this framework is implemented. This will create a new earning source of foreign currency and also strengthen district-level economies. This can be considered not only an e-commerce proposal but also a National Export Democratization Model.

The mindset of entrepreneurs also needs to be changed. In the global market, the story behind a product, its credibility, and the customer experience are the three key factors that create a huge difference.

FACHE, FLMI

Economist

Managing Director, Labaid Cancer Hospital & Super Speciality Centre

Deputy Managing Director, Labaid Group