E-commerce as a Path of Progress for SMEs in Bangladesh

DHAKA – Broadly speaking, e-commerce is the exchange of goods and services and the transfer of funds and data over the Internet. It is governed by technology and digital platforms, including websites, mobile applications and social media, that make buying and selling more feasible.

Today, e-commerce has become a pioneer for businesses all over the world, including small businesses in Bangladesh. As Bangladesh evolves technologically, it is crucial for small businesses to adapt e-commerce for sustainable growth and progress.

Traditional brick-and-mortar businesses are subject to geographic restrictions, but e-commerce allows these businesses to reach customers across the country and even around the world. This increased reach translates into more leads and higher sales.

In addition, setting up and maintaining an online store is often more cost-effective than running a physical store. Overhead costs such as rent, utilities, and employee salaries are greatly reduced. Additionally, digital marketing is generally more affordable and targeted than traditional marketing approaches.

In today’s world, buyers value convenience above many other considerations. E-commerce provides access to shopping anytime, anywhere, making customers stress-free. This convenience can always lead to greater customer loyalty and repeat business.

E-commerce platforms provide valuable insights into customer behavior, preferences, and trends through data analysis. This data can help businesses make frictionless decisions, customize offers, and increase customer satisfaction.

As businesses grow, scaling an online store is easier than expanding a physical store. Thanks to e-commerce, we can add new products, enter new markets and handle larger transaction volumes with minimal capital expenditure.

Interestingly, the e-commerce industry is highly dependent on logistics support, which plays a key role in ensuring customer satisfaction and business competence. Logistics services include transportation from the manufacturer to the warehouse, warehousing and order fulfillment, and delivery to end customers.

Customers expect fast and reliable delivery services. A truly intelligent logistics system optimizes delivery routes and competently manages inventory, avoiding excess inventory, offers real-time tracking and updates, and ensures products reach customers on time and hassle-free returns.

Smart logistics also uses technology to reduce transportation and storage costs. By using data analytics, businesses can optimize inventory levels, reduce waste and simplify operations. By optimizing routes and combining shipments, smart logistics reduces our carbon footprint and helps us achieve our sustainability goals.

An efficient intelligent logistics system is flexible to changes in demand and can scale up operations during peak times. This adaptability ensures that we can cope with growth and fluctuations without compromising service quality.

Building a sustainable ecosystem between e-commerce and smart logistics is essential to harness the benefits of both. First, adopting accurate technology is the foundation of a successful e-commerce and logistics strategy.

Entrepreneurs should invest in a solid e-commerce platform that integrates with a user-friendly, intelligent logistics management system. This combination ensures smooth operations from order placement to delivery. E-commerce should also focus on working with local logistics providers who understand the regional market and can offer tailored solutions.

The business operations team should have the necessary skills and knowledge to manage e-commerce and logistics operations. Regular training in new technologies, customer service, and logistics management can improve overall performance. Continuous monitoring of e-commerce and logistics processes is key to success. Performance metrics to measure success and identify areas for improvement should be constant.

For the sake of small businesses, adopting e-commerce with smart logistics is not just a choice but a necessity for sustainable growth. Effective synergy between e-commerce and smart logistics can pave the way for stable, scalable and thriving business ventures in the digital era.

The author is a banker.