e-Commerce guidelines finalised keeping 5-day delivery time

The commerce ministry has finalised Digital Commerce Operational Guide-2021 mandating the delivery of a product to the customer in five days after advance payment.

If the product is to be delivered to a place not within the city of the seller, the e-commerce company will get a maximum of 10 days, said Hafizur Rahman, additional secretary to the ministry and chief of the government's central digital commerce cell, to the media following an inter-ministerial meeting on Wednesday.

Hafizur said for buyers based in a different city from the sellers, e-commerce companies would have a maximum of 10 days to deliver goods.

Hafizur hoped that the implementation of these guidelines would ensure discipline in the fast-growing sector and create healthy competition.

He said that various sections have been added in the guideline so that customers are not deceived.

If a company does not comply with these rules, the government will be able to close the company, and consumers will be able to file complaints with the Consumer Rights Protection Department and other relevant courts.

Shomi Kaiser, president of the E-Commerce Association of Bangladesh (E-CAB), said the guidelines would ensure healthy competition in the e-commerce sector and protect the rights of consumers.

"We have heard for so long that buyers have been deceived in various ways at different times. The guidelines contain adequate measures to eliminate these irregularities."

She also hoped that the guidelines would be implemented soon.

Companies would be able to move forward by overcoming the existing confusion in the e-commerce sector, she said, adding that E-cab will play a monitoring role when the guidelines are put into practice. 

According to the draft guidelines, e-commerce platforms will hand over ordered products for delivery within 48 hours of receiving advance payment and they will also notify the customers via sms, email or phone calls.

In the next 72 hours, the delivery person or companies will supply the items to the clients.    

For purchase with advance payment, the guidelines say e-commerce companies must already have the showcased items ready to ship – either in their own stock or with a registered third party.  

"If a product is not ready for handover within 72 hours of the payment, the companies will not take more than 10% of the price in advance," said the draft, adding that a 100% advance payment can be charged in this case only through the Bangladesh Bank's escrow service.

For essentials, the delivery time will be shorter than five days as the e-commerce platforms will have to specify the timeline to the customers. For multiple essential items in the same order, a uniform delivery fee has to be charged. Following an inspection of e-commerce company Evaly by Bangladesh Bank report, it was found that the platform had a capacity to repay only 16% of their staggering liabilities, which was owed both to its customers and merchants.

Citing the central bank report, The Business Standard ran a report on the matter on 22 June.

There are mounting allegations against some e-commerce ventures, including Evaly, of failing to deliver products and refunding affected customers who had made advance payments. 

After these irregularities came to light, the government has sprung into action to rein in the sector.

No alternative to cash without BB approval

The draft guidelines, a copy of which has been obtained by this newspaper, say, "All types of digital wallets, gift cards, cash vouchers or any other medium which can be used as an alternative to cash cannot be launched, used, bought or sold without the permission of Bangladesh Bank."

E-commerce companies must have the displayed items in their own stock, or to the registered merchants. Any offer must mention the available stock, and it will have to be updated regularly. 

According to the draft, if a delivery with advance payment is delayed due to an unforeseen and uncontrollable issue, the company will notify customers. But they must not force the clients directly or indirectly to buy any other product in exchange for the delayed one.     

If a product comes with a discount, free shipping or other facilities, the product description must have those mentioned clearly.

The cashback offers or discounts must be effective immediately after the sales as the e-commerce companies will not be allowed to keep the cashbacks in their wallets, said the central bank.   

Besides, once Bangladesh Bank launches escrow services, the payment gateways will make the refunds upon delivery failure or order cancellation by the customers.

Escrow service to launch this week

The escrow service will be launched this week and a circular will be issued, said Mezbaul Haque, general manager of the central bank's Payment Systems Department.

The advance payments will remain with the gateways, and will enter e-commerce platforms' accounts only after delivery.