Bangladesh can easily reach double-digit e-commerce penetration in coming years: Ben Yi

Bangladesh's e-commerce sector has moved far beyond its early days of scepticism, emerging as a fast-evolving part of the country's digital economy.

At the center of this transformation is Daraz Bangladesh, the country's largest online marketplace.

Ben Yi, chief commercial officer of Daraz Group and managing director of Daraz Bangladesh, has overseen a year of steady operational upgrades, trust-building initiatives, and ecosystem development.

In an interview with Abbas Uddin Noyon of The Business Standard, he reflects on Daraz's journey, the lessons learned, and why he believes Bangladesh is approaching a new phase of e-commerce maturity.

Bangladesh's e-commerce journey has moved from low trust to much wider adoption. What were the most important shifts behind this transition?

Several factors came together. Smartphone penetration and digital wallets expanded rapidly, logistics became more convenient, and marketplaces grew as more sellers joined. This is a natural evolution seen in many countries. Bangladesh is still in an early stage e-commerce accounts for only about 2-3% of total retail but the potential is significant.

We can easily reach double-digit penetration in the coming years. At Daraz, we focused on shortening delivery times, introducing single-warehouse fulfillment, and improving reliability, which made online shopping faster and more convenient for consumers.

Looking back at 2025, what were the defining moments for Daraz Bangladesh?

There wasn't a single defining moment. Instead, 2025 was shaped by consistent progress through many small, detailed improvements month after month. These efforts reduced logistics lead times, lowered costs, and strengthened our commercial strategies, including building our Everyday Low Price (EDLP) channel and enhancing Flash Sales. We applied Alibaba's global experience through technology and product innovation, while adapting it to Bangladesh's market reality. This steady approach delivered strong results throughout the year.

Customer trust remains a major challenge. Why did Daraz decide to extend its return policy to 14 days across the entire platform?

Trust is fundamental to e-commerce growth. In Bangladesh, past market incidents made many consumers cautious about shopping online. Extending the return window to 14 days across the entire platform was a deliberate decision to address this directly. We want customers to feel protected and confident that Daraz will support them through refunds, replacements, or resolution if something goes wrong. This reinforces our long-term commitment to making online shopping safer and more reliable.

DarazMall has become central to your authenticity strategy. How does it work, and what impact has it had?

DarazMall is our crown jewel, inspired by Alibaba's Tmall. While we maintain strong quality controls across the entire platform, DarazMall verifies that sellers are reliable brand owners committed to long-term service and authenticity. We strengthened governance, added more brands, and introduced flagship stores with clear Mall tags for quicker purchase decisions. Our Authenticity Guarantee ensures replacement and three times cash back if a product is proven fake. This has significantly boosted customer confidence and brand performance in 2025.

How are you supporting sellers, particularly SMEs, to succeed in digital commerce?

From the beginning, we focused on building a strong seller ecosystem. Tools like backend systems, Daraz University, and incentives such as free delivery and virtual bundles help simplify selling. This allows SMEs to focus on sourcing quality products and managing supply chains.

Going forward, we are integrating AI tools to optimise listings, improve content relevance, and streamline buyer interactions. Drawing on Alibaba's experience, we want to empower more sellers to build sustainable businesses on Daraz.

Daraz Express has grown into a major logistics operation. What is its current scale?

When we entered Bangladesh, reliable logistics were limited, so we built Daraz Express to ensure customer satisfaction. Today, it handles over 70% of our parcels, and we are expanding it as a service for external brands and partners. Our fully digitalised system offers real-time tracking, and we have reduced end-to-end delivery to around two days. We are also launching same-day delivery in Dhaka soon, supporting demand across all 64 districts.

What have campaign events revealed about Bangladeshi consumer behaviour?

Mega campaigns like 11.11 have been hugely successful, and we now work with brands to offer compelling deals on a monthly basis. Consumers value strong discounts on big-ticket items during campaigns, while also returning for daily essentials. Operationally, we scaled warehouses and logistics to handle volume surges. During the last 11.11, deliveries were nearly as fast as regular orders, which shows how far our capabilities have come.

Why has Daraz invested heavily in talent development and inclusion?

Our success depends on our people. By attracting top talent and investing in their growth, we are building future e-commerce leaders for Bangladesh. The Daraz Future Leaders Programme helps young graduates gain fast, cross-functional exposure, while the dWomen initiative promotes female leadership and diversity. Inclusive teams bring better ideas and stronger insights into consumer behaviour, which ultimately benefits the business.

What are the biggest regulatory challenges facing the sector?

E-commerce in Bangladesh is still at an early stage, with significant long-term potential. Clear, stable, and practical policies are essential to support growth. As the country's largest e-commerce platform, Daraz works closely with policymakers to share industry insights and highlight operational challenges and opportunities, including areas like cross-border commerce and SME support.

What excites you most about Bangladesh's e-commerce future?

I'm excited by Bangladesh's prospects for stable economic growth, increased foreign investment, and rising consumer incomes. Daraz aims to accelerate e-commerce penetration by improving speed, service quality, and assortment depth, while helping professionalise the industry. Our long-term vision is a trusted, mature e-commerce ecosystem that delivers the best shopping experience for consumers and sellers and contributes meaningfully to the broader economy.