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Govt Finally Steps In To Regulate E-Commerce
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Govt Finally Steps In To Regulate E-Commerce 

A report by Bangladesh Bank informed the decision that e-commerce giant Evaly had collected advance money from customers, enticed them with heavy discounts, but failed to deliver the products on time. Its huge gap between assets and liabilities increases the risk of leaving a large number of clients and sellers unprotected and unpaid at any given time. 

On Thursday, the government said that e-commerce companies, including Evaly, would no longer be able to pay customers before they receive their products. The new payment process for online purchases is likely to take effect by the end of next week. 

E-commerce activities make more people prefer to shop online in a maritime epidemic with many large and small entrepreneurs striving for goodwill by ensuring quality and timely delivery, others offer huge discounts and fail to deliver products even after full payment in advance.

Meanwhile, several banks, including Valka Bank, Bank Asia, and BRAC Bank, withdrew permission to use their cards for online purchases from 10 e-commerce outlets, including Evaly. Others are Alesha Mart, Dhamaka, E-orange, Sirajganj Shop, Aladiner Prodip, Qcoom, Boom Boom, Adyen Mart, and many more! 

According to the Bangladesh Bank report, Evaly’s traders owe Tk 1,990 crore and will have to invest heavily to deliver products worth Tk 214 crore to customers who have already ordered. Otherwise, Evaly will have to take more items on credit from traders.

E-commerce outlets have continued their questionable business policies as the sector has become uncontrollable. The Commerce Ministry has been sitting on the draft guidelines for almost a year. 

Several financial institutions such as SSL Commerce, bKash, City Bank, Eastern Bank, BRAC Bank, and SIBL now act as payment gateways. However, there are no specific guidelines on how long it will take them to transfer money from customers to e-commerce companies.

Mejbaul Haque, general manager of the central bank’s payment systems department, said the system would be implemented as soon as the central bank received the letter.

“We will issue a notification informing financial institutions that their customers should not be paid for the e-commerce platform without progress.”

“We are introducing it as an interim measure as it will take time for the escrow service to be launched,”

-Mezbaul Haque.

Banks will resume transactions with the e-commerce platform as soon as the new payment system comes into effect, he added. 

Currently, four banks – Standard Chartered, EBL, BRAC, and The City Bank – hold about 60% market share of the card market.

Total transactions on e-commerce platforms fell to an all-time high of Rs 911 crore in April this year. About one thousand e-commerce companies are listed with the Ministry of Commerce.

E-commerce outlets have continued their questionable business policies as the sector has become uncontrollable. The Commerce Ministry has been sitting on the draft guidelines for almost a year. 

Since the e-commerce company will receive payment after delivery of goods under the new system, additional investment will also be required to purchase goods from merchants. 

Read More: Lockdown Is Putting A Strain On Local Businesses

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