Bangladesh's online transactions rise 50%, Ecom Express logistics orders surge

Logistics companies in Bangladesh have thrived during the pandemic as more people have started shopping through online platforms.

The convenience of being able to purchase a wide variety of products at your fingertips without leaving your home is a key driving force behind the rapid development of online platforms and the e-commerce industry.

In addition, online retail platforms allow people to avoid the risk of contracting the virus as goods are usually delivered to their doorsteps by logistics companies.

Industry insiders say that due to these factors, the number of users choosing online shopping and home delivery in Bangladesh surged by 50% during the pandemic .

“Logistics companies associated with online sales have huge potential in Bangladesh as e-commerce currently accounts for only 1% of total retail sales,” said AKM Fahim Mashroor, CEO of e-commerce platform AjkerDeal.

He added: “That’s why many new companies are entering the industry and existing companies are able to continuously improve their capabilities.”

According to German market and consumer data company Statista, India's market size exceeded $60 billion in 2020 .

Strong and efficient logistics services have played a key role in expanding the local e-commerce market.

Similarly, e-commerce has been a major catalyst for the rise of logistics giants, with logistics services companies Ecom Express and Shiprocket being new entrants in the Indian logistics industry.

Sensing the huge prospects of Bangladeshi logistics, Indian logistics company Ecom Express acquired a majority stake in Bangladeshi logistics service provider Paperfly in January this year.

Ecom Express covers most states in India and delivers more than 500,000 parcels every day. "With Ecom's expertise, we are now working to expand our presence in India," said Rahath Ahmed, co-founder and chief marketing officer of Paperfly.

For Ecom Express, a majority stake in Bangladeshi logistics service provider Paperfly means it will gradually expand its business scope.

According to Rahath Ahmed , the main challenge for the development of e-commerce and subsequently logistics in Bangladesh is to establish a wide range of sellers.

“In Bangladesh, when we get orders from e-commerce platforms, we find that most of the sellers are located in the capital city. If we can get millions of sellers outside Dhaka, then e-commerce logistics will be greatly helped,” said Rahath Ahmed.

India

logistics

Bangladesh