Assignment on

“E-Commerce”

Submitted to
Shirin Akter

Assistant professor

Department of Management

Faculty of Business Administration

Bangladesh University of Business and Technology (BUBT)

Submitted By
Name: Saba Akthar

Program: BBA

ID: 21221101052

Intake: 56

Sec: 02

Date of Submission: 01.11.2023

The history of E-commerce
What is electronic commerce?
Electronic commerce or e-commerce is the buying and selling of goods and
services on the internet. It involves online retailers and brands using e-
commerce platforms or their own websites to accept payments, process and
ship their products, and delight customers.

E-commerce Bangladesh:
There isn’t a single founder of e-commerce in Bangladesh,as the industry has evolved over time
with the contribution of various entrepreneurs and companies. Early e-commerce efforts were
initiated by several individuals and organizations in Bangladesh.Some notable companies and
figures that played pivotal roles in the growth of e-commerce in Bangladesh include:

1. Mahbubul Matin(founder of Daraz Bangladesh)

2. A.K.M.Fahim Mashoor( founder of AjkerDeal)
3. Mahmudul Hasan Sohag(founder of Rokomari) etc.

E-commerce in Bangladesh has experienced significant growth and transformation over

the years. Here is a brief story:

Late 1990s: The concept of commerce began to emerge in Bangladesh in the late 1990s
with the introduction of internet services. A few early adopters started selling products
online.

Early 2000s: the first e-commerce websites and online market places were established in
2000s. These platforms facilitated to sale of a variety of products, ranging from electronics
to fashion items.

Mid 2000s: The commerce sector faced challenges related to payment gateway, logistics &
digital infrastructure, it continued to grow & more players entered the market.

Late 2000s: Mobile internet access and smartphone adoption led to a surge in online
shopping. Major e-commerce platforms like Daraz and AjkerDeal (previously BDHaat)
gained popularity during this period.

2010s: The e-commerce landscape continued to evolve with the emergence of

various startups and marketplaces, including Kaymu (later rebranded as Daraz),
Rokomari, and others. The government also introduced policies to support the
growth of the sector.

2020s: The COVID-19 pandemic accelerated the growth of e- commerce as

more people turned to online shopping for safety. E- Commerce platforms
expanded their offerings, and the government took steps to promote the
sector further.

Ongoing: The e-commerce industry in Bangladesh continues to grow rapidly,

offering a wide range of products and services. Investments in logistics and
digital payment solutions have played a vital role in shaping the industry's
future.

E-commerce International:

E-commerce began in 1995 when one of the first Internet portals,

Netscape.com, accepted the first ads from major corporations and popularized
the idea that the web could be used as a new medium for advertising and sales.
No one envisioned at the time what would turn out to be an exponential growth
curve for e-commerce retail sales, which doubled and tripled in the early years.
E-commerce grew at double- digit rates until the recession of 2008-2009, when
growth slowed to a crawl and revenues flattened, which is not bad considering
that traditional retail sales were shrinking by 5 percent annually. Since then,
offline retail sales have increased only a few percentage points a year whereas
of e-commerce has been a stellar shrinking by 5 percent annually. Since then,
offline retail sales have increased only a few percentage points a year, whereas
online e-commerce has been a stellar success.

The very rapid growth in e-commerce in the early years created a market
bubble in e- commerce stocks, which burst in March 2001. A large number of e-
commerce companies failed during this process. Yet for many others, such as
Amazon, eBay Expedia, and Google, the results have been more positive:
soaring revenues, fine- tuned business models that produce profits, and rising
stock prices. By 2006, e commerce revenues returned to solid growth and have
continued to be the fastest- growing form of retail trade in the United States,
Europe, and Asia.

The history of international e- commerce is a fascinating journey that

has evolved over several decades:
1970s-1980s: The origins of e- commerce can be traced back to the
development of electronic data interchange (EDI) in the 1970s and 1980s.
This allowed businesses to exchange electronic documents, such as
purchase orders and invoices, with their trading partners.

1990s: The World Wide Web brought about a significant change. Amazon,
eBay, and other online marketplaces emerged in the mid-1990s. This decade
saw the beginnings of cross-decade saw the beginnings of cross- border
online shopping, with consumers able to purchase products from
international sellers.

Early 2000s: E-commerce platforms and payment gateways like PayPal

continued to facilitate international transactions, making it easier for
consumers and businesses to engage in global e-commerce.

Mid-2000s: The introduction of international shipping options and more

accessible translation tools made it simpler for e-commerce businesses to
expand globally.

2010s: Mobile commerce (m- commerce) gained traction, and social media
platforms started to social media platforms started to play a significant role in
international e-commerce, with influencers and advertising on platforms like
Instagram and Facebook.

2020s: The COVID-19 pandemic accelerated the growth of international e-

commerce as more people turned to online shopping. It also brought new
challenges, such as supply chain disruptions and increased demand for delivery
services. Throughout this history, there have been ongoing developments in
cross- border payment solutions, logistics, and regulations to support the
expansion of international e- commerce. The future of international e-commerce
is likely to continue evolving with innovations in technology, more advanced
payment options, and increased globalization.

Principals of e-commerce business models

E-commerce business models are:

Portal
Portals are gateways to the web and are often defined as those sites that
users set as their home page Portals such as yahoo, Facebook, MSN, and
AOL offer web search tools as well as an integrated package of content and
services such as news, email, instant messaging, maps, calendars, shopping,
music downloads, video streaming, and more all in one place.

E-tailer
An e-tailer, short for "electronic retailer," is a business that primarily operates
online to sell products or services to consumers. E-tailers function similarly to
traditional retailers but do so exclusively or primarily through internet platforms,
such as websites or mobile apps. They often offer a wide range of goods,
including electronics, clothing, books, and more, and may use various online
marketing and e-commerce strategies to reach their customers. E-tailers have
become increasingly popular due to the convenience of online shopping and the
wide variety of products available on the internet.

The content provider

Content providers distribute information content- such as digital video, music,
photos, text, and artwork-over the web. The value proposition of online content
providers is that consumers can conveniently find wide range of content online and
purchase this content inexpensively to be played or viewed on multiple computer
devices or smartphones. Providers do not have to be the creators of the content
(although sometimes they are, like Disney.com) and are more likely to be Internet-
based distributor- tors of content produced and created by others.

A transaction broker
Sites that process transactions for consumers normally handled in person, by
phone, or by mail are transaction brokers. The largest industries using this
model are financial services and travel services. The online transaction broker's
primary value propositions are savings of money and time and providing an
extraordinary inventory of financial products or travel packages in a single
location.

Market creator
Market creators build a digital environment in which buyers and sellers can
meet, display products, search for products, and establish prices. The value
proposition of online market creators is that they provide a platform where
sellers can easily display their wares and purchasers can buy directly from
sellers. Online auction markets such as eBay and Priceline are good examples of
the market creator business model.

The service provider

Whereas e-tailers sell products online, service providers offer services online.
Photo sharing and online sites for data backup and storage all use a service
provider business model. Software is no longer a physical product with a CD in a
box but, increasingly, software as a service (SaaS) that you subscribe to online
rather than purchase from a retailer, such as Office 365. Google has led the way
in developing
 Community provider
Community providers are sites that create a digital online environment where
people with similar interests can transact (buy and sell goods); share interests,
photos, and videos; communicate with like-minded people; receive interest-
related information; and even play out fantasies by adopting online personalities
called avatars. Social networking sites are Facebook, instagram etc.

E-commerce revenue models

A firm's revenue model describes how the firm will earn revenue, generate
profits, and produce a superior return on investment. Although many e-
commerce revenue models have been developed, most companies rely on one,
or some combination, of the following six revenue models: advertising, sales,
subscription, free/premium, transaction fee, and affiliate.

Advertising revenue model

An advertising revenue model is a business model that relies on generating
income primarily through advertising. This model is commonly employed by
a wide range of media and digital content companies, including websites,
social media platforms, television networks, radio stations, newspapers, and
magazines.

Sales revenue model

A sales revenue model is a framework that outlines how a business generates
income through its sales activities. It typically includes details about pricing
strategies, sales channels, customer segments, and sales forecasts. Various
types of sales revenue models exist, such as subscription-based, transaction-
based, or advertising-based models, depending on the nature of the business.

Subscription revenue model

A subscription revenue model is a business model in which customers pay a
recurring fee at regular intervals (e.g., monthly, quarterly, or annually) to
access a product or service. This model is commonly used in various
industries, including software, media, streaming services, and more.
Examples of subscription revenue models include streaming services like
Netflix, software-as-a-service (SaaS) products like Microsoft 365, and
subscription boxes like Birchbox, where customers receive a curated
selection of products each month.

Free or freemium revenue model

In the free/premium revenue model, firms offer basic services or content for free
and charge a premium for advanced or special features. For example, Google
offers free applications but charges for premium services.

Transaction fee revenue model

In the transaction fee revenue model, a company receives a fee for enabling or
executing a transaction. For example, eBay provides an online auction market
place and receives a small transaction fee from a seller if the seller is successful
in selling an item.

Affiliate revenue model

In the affiliate revenue model, websites (called affiliate websites) send visitors to
other websites in return for a referral fee or percentage of the revenue from any
resulting sales. Referral fees are also referred to as lead generation fees. For
example, MyPoints makes money by connecting companies to potential
customers by offering special deals to its members. When members take
advantage of an offer and make a purchase, they earn points they can redeem
for free products and services, and MyPoints receives a referral fee.