Pranta Biswas,
MSc in International Business and Cross Border Ecommerce, UIBE, China
E-commerce is an innovation in the retail industry that has grown exponentially since it first began, and continues to expand its influence and capabilities globally (Chi, 2016). To keep the pace with regional economies, the online based business sectors in Bangladesh are also growing at an extensive rate. Currently, there are approximately 2,500 e-commerce sites and 150,000 Facebook-based outlets operating in Bangladesh and 80% of the total online sales are taking place in Dhaka, Chattogram, and Gazipur (E-Cab). According to the president of the e-commerce association of Bangladesh (e-cab), the current market size of E-commerce in Bangladesh is around USD1 billion (BDT 8,000 crore). E-commerce is a retail sector invention that has developed rapidly since its inception and continues to increase its influence and capabilities throughout the world. This new retailing channel poses logistical difficulties, particularly in terms of environmental sustainability. Companies that want to project a sustainable image frequently adapt their production processes to decrease waste and pollution, but the product isn’t the only component of the business that can be altered to lessen its environmental effect (Chi, 2016). In recent years, mainly due to increased environmental concerns and increased competitive pressure, sustainability issues have been attracting more attention from researchers and practitioners in the field of e-commerce (Riccardo Mangiaracina, 2015).
Awareness level of Environment Sustainability in Bangladesh E Commerce Industry:
According to German research organization Statista, the ecommerce industry is estimated have grown from $1.6 billion in 2019 to approximately $2 billion in 2020, while it is projected to reach $3 billion in 2023 in Bangladesh. There were 52.58 million internet users in Bangladesh in January 2022 (DATAREPORTAL, 2022). Bangladesh’s internet penetration rate stood at 31.5 percent of the total population at the start of 2022. Kepios analysis indicates that internet users in Bangladesh increased by 5.5 million (+11.6 percent) between 2021 and 2022. Covid 19 pandemic has influenced to grow this ecommerce industry in Bangladesh (DATAREPORTAL, 2022). With the grow of Ecommerce industry, the implication of sustainability is becoming a great concern. As The effects of e-commerce on the environment are complicated and can be difficult to measure, because it reduces emissions in some areas yet increases emissions in other areas.
The value of packaging for e-commerce applications is set to grow at 14% year-on-year between 2018 and 2023, and will be worth around $65 billion (at constant 2018 values) by 2023 (SMITHERS, 2018). Although the environmental effects of e-commerce have drawn attention in recent years, data on this issue is still limited and prior findings are inconclusive or incomplete. With the growing of ecommerce, environment is more impacted. Focusing on online retailing, wide-ranging environmental effects may derive from a number of factors, such as an increase information technology usage, the redesign or use of additional packaging (Tagami, 2003) and the physical distribution of items. Transportation planning and management, warehousing, packaging, and distribution network design are the key areas contribute to generating effects associated with sustainability in Ecommerce Supply chain (Riccardo Mangiaracina, 2015).
With rapid growth and urbanization, Bangladesh faced a sharp increase in both plastic use and pollution. In the last 15 years, Bangladesh’s annual per capita plastic consumption in urban areas tripled to 9.0 kg in 2020 from 3.0 kg in 2005 (World Bank, 2021). Consumption of LDPE packaging materials (plastic bags, etc.) increased fivefold in 2020 from 2005. Of the 977,000 tons of plastic consumed in 2020, only 31 percent were recycled. Most mismanaged plastic waste was single-use plastics like shopping bags, packs, and wrappers. ResearchGate, a European commercial social networking site, says Bangladesh is responsible for 2.4% of the world’s mismanaged plastic waste. Bangladesh generates 821,250 tonnes of plastic waste annually. Only 293,825 tonnes of that waste are recycled and 527,425 tonnes go to the landfill and the environment, according to a study of the Department of Environment (DoE).
Both the business entity and consumers are responsible for vulnerable situation. But major portion are not willing to take any step against environment sustainability mentioning their business scenario. They claimed they are not profitable yet (E-Cab).
In a sense, it is seen that, Both consumer and Ecommerce business owner awareness level is not satisfactory in Bangladesh. Due to vast and fast development of e-commerce, companies and businesses are paying so much attention to the production of low cost products. Also, they are focusing on developing efficient methods and practices which increases productivity in minimum efforts and cost. They are not aware and hence not concerned about its adverse environmental implications (Sunita Tiwari, 2011). We found that, Both the consumers and business owner are giving priority of product safety rather considering environment impact of heavy packaging, transport, technology that produce carbon footprint.
