The proliferation of computers and the rapidly increasing use of Internet have brought about this new phenomenon called e-commerce or electronic commerce. e-Commerce can be described as the trading of goods and services for a price or other consideration using electronic means for exchange of data, information, communication, and payment. This electronic means of exchange brings about dimensions in commerce never imagined before. Potential customers can inquire about the dimensions, price and availability of products and services from the comfort of their home by browsing various multimedia including video, images, illustrations and text.

Customers can view e-commerce sites across the globe, compare product offerings, check historical transactions, and read comments by existing customers kept by independent consultants and third party reviews -- all achieved through the click of a mouse. Vendors can track customer preferences and customise offers for a particular customer -- and millions of other customers -- adding a personal touch in commerce. Commerce as we know will be completely redefined as we move more and more away from traditional commerce towards e-commerce.

The main barriers to growth of commerce are mostly related to demand and supply. The main constraints can be listed as follows.

Demand-related

• Lack of demand
• Inability to create demand
• Inability to inform and update all customers with complete information
• Resistance from buyers due to ignorance
• Inability to increase the customer base and promote effectively
• Inability to ensure perception of value for money to the customers
• Inability to reach out to all potential customers at the right time

Supply-related

• Resistance from buyers due to unequal access to similar offerings from vendors
• Resistance from buyers due to lack of certainty of value for money
• Lack of supply due to lack of communication with suppliers to suppliers
• Inability for customers to reach out to all potential suppliers
• Resistance from buyers because of lack of convenience in making transactions
• Inability to estimate customer demand and hence encountering short supplies
• Order process is too long and customers often cannot plan well ahead of time
• Too much capital is tied up in inventory, thus choking financial resources

e-Commerce can overcome most of these traditional constraints in an ideal situation where everyone is digitally and adequately connected. More Information Technology (IT) conscious countries have taken advantage of this already. E-commerce has formed solid roots in the western developed economies such as the USA, Canada, UK and Europe because of the advantage these developed countries enjoy from an IT-enabled and e-commerce ready infrastructure. Most other countries are trying to catch up. Most economies are faced with multi-dimensional improvements or changes that they must achieve in order for them to embrace e-commerce fully.

In fact, all countries are wrestling with changes in traditional commerce practices and must adapt to take full advantage of e-commerce benefits. Wanting to be in this band wagon to survive, most companies have adopted an e-centric strategy with intranets, website and web-enabled applications with proper allocation of human, time, and financial resources or they are in the process of doing so to ensure their competitiveness in this burgeoning e-commerce dominated world.

Most believe that e-commerce can make the small large and the ordinary great as it squashes all middlemen between buyers and sellers and almost achieves Adam Smith's definition of "market" where buyers and sellers have complete information and always make fully informed decisions. Humans have always discovered tools to increase productivity which alters the relationship between them and the nature. But Internet, the World Wide Web and electronic commerce are tools that have empowered humankind like no other and has opened up worlds that was almost unimaginable before its advent.

Bangladesh has no choice but to bring prosperity quickly to its hapless people. The alternative is degeneration to almost a non-entity and becoming a ripe pick for all who wish to exploit us in numerous ways. We need to bring strength to the weak and restore faith and confidence in our hearts. Information Technology, the Internet, World Wide Web, and electronic commerce are succour to the underprivileged, and are the most democratising forces on earth today.

They are tools that can let us achieve our dream of being propsperous. e-Commerce liberates and brings down barriers between the big and the small, the mighty and the weak, the Goliath and the the Davids. Small enterprises can aspire to do what was only the realm of big. For businesses in Bangladesh, this is of particular importance as we have a golden opportunity to compete with global players. However, for e-commerce to take a foothold in Bangladesh, the following must happen immediately (i.e., within the next two years).

• Open the telecommunications sector so that both government and private businesses compete and give the best telecom infrastructure to the consumers.
• Implement digital and broadband networks to offer affordable and internationally competitive prices to all.
• Install submarine cable links to the outside world with the latest technology so that we are at par with the rest of the world in terms of quantity and quality of connectivity.
• Provide free use of VSAT links through satellites in addition to submarine cable links to offer failsafe and robust communication systems with zero downtime. This is especially necessary for critical applications.
• Significantly increase personal computer (PC) use both at home and office by extending personal loans on soft terms and giving companies incentives for computerisation.
• Increase telephone density in both urban and rural areas to at least ten times the present density of 5 per 1000.
• Open up other sectors like power, transport, etc. through delicensing and privatisation for rapid overall infrastructure development of this country.
• Revise all legislation brought about by new business processes, new business orders and new dimensions of commerce as a result of e-commerce. Impacts of taxation rules in cross border transactions with or without physical movement of goods, free currency convertibilty and global concepts such as e-money where digital money is downloaded from a bank and stored on customer's local PC, related security issues will have to be accounted for.
• Introduce a Cyber Law to accommodate new definitions of document and extend their authenticity in the eyes of the law. Cyber transactions in all its forms need to be legally recognised. Compatibility of such legislation with the rest of the world is also necessary for earning the confidence of the global partners.
• Good education and quality are a key to succeed in this digital economy and a critical mass must be reached in supplying an IT-educated workforce in Bangladesh. e-Commerce technology suppliers and consultants must be available in adequate numbers.
• Change the attitude of the buying mass from physical 'see, feel and pay' procedure to virtual 'browse, click and pay' procedure.
• Develop e-commerce capabilities in Bangladesh through clear guidelines in an evolutionary manner and in cooperation with businesses, consumers and government and in their multiple combinations nationally and internationally.

e-Commerce is bringing about a new economy in our midst and if we in Bangladesh fail to understand its dynamics we are going to be simply left behind and may even be forgotten as a failed nation.