E-Commerce Companies Hesitant to Adopt Digital ID

Local e-commerce companies in Bangladesh are showing reluctance to apply for the Digital Business Identification (DBID) due to regulatory and technical challenges, according to industry insiders. As per data from the e-Commerce Association of Bangladesh (e-CAB), only 2% of its 2,800 registered members have applied for DBID, and of those, just 14% have successfully obtained it.

The DBID system, introduced in February 2022, was designed to bring order to the country’s crisis-hit e-commerce sector. However, technical difficulties and complex application processes have led to a low adoption rate. e-CAB has proposed simplifying the system and prioritizing DBID approval for its members, in hopes of increasing its popularity.

According to e-CAB’s acting president, Mohammad Sahab Uddin, the DBID currently does not offer significant benefits to businesses, such as serving as an alternative to a trade license or easing access to bank accounts and loans. These limitations, along with the complicated application process, have resulted in a high rejection rate, which further discourages companies from reapplying.

The government had approved the Digital Business Identification Registration Guidelines in 2022, making DBID mandatory for e-commerce businesses to operate legally under the Registrar of Joint Stock Companies and Firms (RJSC). Despite this, many applications have been rejected without clear reasons, adding to the hesitancy among e-commerce platforms.

To address these issues, Mr. Sahab Uddin suggested involving local IT associations and adding more value to DBID, such as offering tax incentives and recognizing it as a trade license alternative. He also recommended organizing workshops and training programs to raise awareness among businesses. These efforts follow a series of scandals involving fraudulent e-commerce platforms, which have highlighted the need for better regulatory oversight. So far, 1,240 companies have successfully received DBID out of 8,852 applications, according to the DBID website.

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