E-commerce Sector Faces Devastating Losses Amid Internet and Social Media Shutdown

The digital economy of Bangladesh has taken a significant hit, with the E-Commerce Association of Bangladesh (E-CAB) revealing that the country's e-commerce sector has incurred a staggering loss of Tk 1,700 crore due to the recent shutdown of the internet and Facebook. This disruption, which lasted for 13 days, has had severe repercussions across various sectors, highlighting the growing dependency on digital platforms for business operations.

Massive Losses Across Digital Sectors

E-CAB has reported that within just three days of the internet and Facebook blackout, the e-commerce sector alone suffered a loss of Tk 600 crore. The e-tourism sector followed closely with a loss of Tk 300 crore, while the e-logistics sector reported a loss of Tk 100 crore. These figures underscore the importance of uninterrupted internet access for the survival and growth of digital businesses in Bangladesh.

E-CAB’s Call to Action

Shami Kaiser, President of E-CAB, addressed the media at a press conference held at the organization's office in Banani, Dhaka. She emphasized the critical need for a stable and uninterrupted internet connection, stating, "In a digital Bangladesh, the internet is not just a convenience; it is a fundamental necessity for the livelihood of millions."

E-CAB has urged the government to consider the devastating impact of such disruptions and to ensure that policies are in place to prevent future shutdowns. The association's demands include a six-month extension for loan repayments by entrepreneurs, easy access to loans, temporary waivers of VAT on logistics and digital marketing, and the extension of trade license renewal fees.

A Contingency Plan for Future Stability

E-CAB has also proposed a business contingency plan to the government, aiming to shield small and medium enterprises (SMEs) from similar crises in the future. Kaiser called for the government's cooperation in coordinating with the Bangladesh Investment Development Authority (BIDA) to implement this plan, ensuring that entrepreneurs are not left vulnerable to such disruptions.

The association also urged the government to negotiate with Meta, the parent company of Facebook, to refund the advertising costs that were deducted during the blackout. They recommended that the 15 percent VAT on advertising be withdrawn and that the renewal fees for trade licenses be waived to support struggling entrepreneurs.

The Far-reaching Impact on Entrepreneurs

In a detailed statement, Kaiser outlined the extensive damage caused by the internet shutdown, including the closure of social media platforms like Facebook and WhatsApp. She noted that the disruption had a ripple effect on businesses, particularly for the 2 million entrepreneurs in the country who rely on the internet, with over 500,000 dependent on Facebook alone for their operations.

E-CAB's findings, based on a survey of digital marketers, content developers, and startups, revealed that 95 percent of the country's e-commerce transactions were halted due to the Facebook blackout. This has prompted the association to explore alternative platforms and encourage entrepreneurs to diversify their digital presence to mitigate future risks.

Moving Forward

As the e-commerce sector slowly recovers from this unprecedented setback, E-CAB is taking proactive steps to ensure that such disruptions do not happen again. By advocating for policy changes and exploring new digital avenues, the association is striving to protect the interests of the millions of entrepreneurs who form the backbone of Bangladesh's digital economy.

For more updates on this story and other developments in Bangladesh’s e-commerce landscape, stay tuned to Bengalivogue.com.