Bangladesh has increased a surge in digitization in every sphere. The increased connectivity has made access to smartphones and the internet more affordable and easier than ever. This has paved the path for different social media engagements like Facebook. The connected nature combined with a robust user base has given rise to the F-commerce ecosystem. So, where does Bangladesh stack up in the F-commerce scenario? What are the problems and prospects? We take a deeper look at this article. What is F-commerce? F-commerce is the short form of Facebook commerce. Globally there are 2.85 billion active Facebook users. That accounts for around one-third of the total population of the world. Almost a billion of them are regular users who log in at least twice every week. The increased user base has prompted the use of the platform as a business space which soon transitioned into small to medium scale businesses. There are about 46 million active Facebook users in Bangladesh. The high user base has promptly encouraged small businesses to take up the platform as a marketplace. There are about 2000 dedicated eCommerce platforms in Bangladesh whereas there are over 300000 F-commerce pages doing business. Read Potential of e-commerce hemmed in by bottlenecks Due to lack of regulation, a large portion of the business goes unaccounted for. However, out of a total of 7000 crores BDT worth of eCommerce sales, F-commerce accounted for over 1000 crore BDT in sales. This is a testament that Bangladesh is slowly making the transition to the F-commerce revolution. Problems facing F-commerce in Bangladesh A high tariff on import Most of the F-commerce platforms in Bangladesh are import-based resellers. Most of the products are sold on a pre-order basis or niche customer base. As a retail importer, they face high import tariffs which are driving the cost up at the customer level. This price is not regulated at all and different vendors sell the same product at a different price which is a detriment for the customer. Logistics Another prime problem facing F-commerce is the lack of logistical support. Unlike the large eCommerce platforms of Bangladesh, the F-commerce businesses don’t have a dedicated shipping mechanism. As a result, they are forced to rely on local couriers and delivery partners. The third-party shipping method further drives up the cost in the customer end in the form of delivery charges. Read 8 Mistakes to Avoid in a New Ecommerce Startup in Bangladesh in 2021 No legal framework There is no legal framework to regulate the F-commerce sites. There are over 300000 Bangladeshi pages on Facebook alone doing business in various niches. The different regulations and permission required to set up a business don’t apply as there is no regulatory authority overseeing the entire process. As a result, there is no limitation to price competency, product regulation, and customer end experience. Lost revenue The government is losing a huge amount of revenue in the form of tax from the F-commerce platform. With the absence of regulatory bodies, there isn’t even an appropriate estimation of the number of operating F-commerce pages. These pages are doing business of over 300 crores. The pandemic caused a paradigm shift in business conduction as more and more people are getting inclined to online shopping. There has been a reported increment of over 70% to 80% increment in sales across the board. However, the government doesn’t receive any form of GST or sales tax from these pages. Read The SWAP story of Bangladesh's first reCommerce startup

As Bangladesh tackles the Covid-19 situation, the impact left behind by the pandemic has been quite significant. Not just in terms of loss of lives but economic downtrend as well. Many people lost jobs and many businesses saw themselves on the brink of shut down. However, many businesses are opting to shift their offerings to what’s known as Facebook Commerce or F-commerce. With 22% of the population of Bangladesh being active users of Facebook, the platform can provide a strong foothold to reach customers on a far wider and diverse scale. In this article, we will take a look at some of the best small business ideas for F-commerce in Bangladesh during a pandemic. Small business ideas for F-commerce in Bangladesh Clothing Line With a country of festivities, we sure do have a knack for clothing. That is reflected in the apparel market as the market cap stands at around BDT 250 billion. There is a huge opportunity of taking this apparel market to the online platform. As a startup, you can source apparel locally from wholesale dealers and create an apparel niche of your own. With the Flexibility of F-commerce, it becomes very easy to reach your target customer base. You can even jump-start your business with little to no capital. You can start by having a small exclusive line of collection or simply set up a system of pre-order. That will ensure that there isn’t any loss to your startup venture. Also Read A Bangladesh startup that aims at saving the world! Book Store Nothing like a good book in days of lockdown, right? There is a high number of book readers in Bangladesh. The numbers add up as the Amar Ekushey Boi Mela saw a 70 crore BDT jump in sales from 2013-2018. With a growing demand for books, selling them on an online platform can be a good startup venture. The goal here is to find the targeted customer base and set up your business to attract them. Just like the apparel line, you can list your collections or simply deliver on a pre-order basis. Nilkhet being one of the largest markets of all sorts of books, sourcing shouldn’t be an issue and you can make a profit straight away with very little investment. Read How to Earn Money from Facebook Consumer Electronics The consumer electronic market is another potential sector for F-commerce startups. In 2017, the total market cap on consumer electronics stood at 1.38 billion BDT. However, as a startup, it's not possible to sell large-scale consumer electronics because of regulation and investment. You can start with smart gadgets and portable electronic items. The pandemic has seen people shift to online platforms for their gadget fix. You can either start by offering a certain product category or you can add multiples depending on your investment scale. The most important thing here is to plan. You should have a definitive F-commerce marketing strategy to attract customers. And since this is a consumer electronic sector, there should be ample focus on the after-sales service as well to ensure customer retention. Read 24pc of female online entrepreneurs shut businesses in June: Study Home-Based Catering There is a huge untapped opportunity in the home-based catering service in our country. With the easy parcel delivery services in Bangladesh, it is now possible for the home cooks to deliver on-demand food items concurrent to the restaurants. A home-cooked meal is not only a healthier choice for many but also a comparatively cheaper alternative to restaurants and takeaways. Just like the other F-commerce ventures we have mentioned in this article, the capital investment in home-based catering is little to nothing. The variety of cuisines on demand is what makes this start-up idea a thriving one. Based on expertise, a home cook can significantly monetize their skills and convert them into a functional earning source. And with the pandemic in question, the demand is also at an all-time high. Also Read: What Is Passive Income? Pros and Cons of Passive Earning Online Grocery Store An online grocery store is another business idea that has been propelled to the forefront in light of the pandemic and ensuing lockdowns. The idea of having all the daily necessities right at your fingertip is lucrative for many. This not only reduces the hassle but also ensures that you won't have to risk your safety by visiting crowded places. As a small business, focus can be put on a certain niche of groceries. It can be cooking essentials, dairy items to frozen goods. This solely depends on the target market. It is possible to source goods from wholesalers depending on the niche. As long as you can ensure competitive pricing, the F-commerce platform can be the perfect place to kickstart your venture. Read Zero Investment Business Ideas to Try Amidst the Pandemic Cosmetic Line Beauty products have a considerable market cap in Bangladesh. In addition to local brands, there is a high demand for the international cosmetic brands and their products. A cosmetic line can be a good small business idea because the online market is still in its budding state. People are getting more and more used to buying goods from online stores as the pandemic has reshaped the idea of how we shop. Depending on your niche, you can source products from the local market or use importers to source products from an international brand. Needless to say, the latter would require a significantly larger investment. But the ROI of this venture is high and considering there is no sunk cost involved, you stand to make a profit in a considerably short time. Art & Craft Recent trends show that the millennials of Bangladesh are significantly interested in local arts and crafts. It can be attributed to the widespread cultural promotion and in the general interest of the mass. If you are someone who is an artist, you can sell your work on the F-commerce platform. Not just art itself, there is a huge of demand for local craft utensils. Whether it's for home decoration or part of utility needs, as a business, you can produce or source these local crafts for online clients. Also Read: Domestic electronics, technology products should get priority in govt procurement: Speakers Sell Your Expertise If you are an expert in your trade, you can set up your online consulting firm. There are endless niches where there is a demand for expert consultation on different subjects. The same stands true for skills as well. If you are good with graphics designing or web content development, you can sell your expertise on the F-commerce platform depending on your niche. This doesn’t require any investment to begin with and also makes communicating with the clients easier. Bottom Line There is a huge untapped opportunity when it comes to the startups in the F-commerce sector of Bangladesh. The pandemic has paved a way for many new Facebook-based business ideas in the existing niche as well as creating demand for new ones. Sure enough, you won't see success upfront, and you would need to develop a sizeable community around your product. But the efforts and investment are much more risk-free when it comes to F-commerce and has a high ROI. Read Bangladesh Cloud Kitchen Business Heralds Improved Food Delivery Services

State Minister for ICT Zunaid Ahmed Palak on Sunday said the participation of young entrepreneurs in F-commerce (Facebook commerce) is on the rise significantly. “At least 400,000 new entrepreneurs are engaged in F-commerce. Bangladesh Bank is going to arrange small loans at 4 percent interest for the entrepreneurs who are engaged in F-commerce and Startup business,” he said at a virtual conference. Also read: Govt planning to formulate data privacy protection law: Palak The e-Commerce Association of Bangladesh (e-CAB) arranged the virtual conference on Rural to Global E-commerce Policy Conference. LGRD and Cooperatives Minister Tazul Islam inaugurated the event. Palak also highlighted different initiatives taken by the government for e-commerce and its entrepreneurs in the first session of the conference.  The LGRD minister said people are choosing e-commerce to sell and purchase goods, from food to luxurious products. “Though it (e-commerce) began small, now a sort of dependency (on e-commerce) has been created,” he said. Also read: Palak unveils software to bridge jobseekers with disabilities ... Addressing the function, Senior Secretary of Commerce Ministry Dr Jafar Uddin said the commerce ministry has formed a digital commerce cell to implement the digital commerce policy. “The work is on to finalise the digital commerce operation guidelines 2021. We keep the matter of inclusion of social media commerce entrepreneurs in the guideline under the consideration of the Commerce Ministry,” he said.  Chief executive officer of Bangladesh Foreign Trade Institute (BFTI) Obaidul Azam, deputy governor of Bangladesh Abu Farah Md Nasser and Bangladesh Association of Software and Information Services (BASIS) Syed Almas Kabir, among others, spoke at the conference presided over by e-CAB president Shomi Kaiser, said a press release. Read Startup Bangladesh Ltd to invest Tk 100 crore for 50 startups marking birth centennial of Bangabandhu and Golden Jubilee of Bangladesh