also operates an on-demand delivery service, GoGoBangla, which offers logistics services to small e-commerce businesses, as well as a network to connect farmers directly with retailers (the Chaldal Vegetable Network), and plans to open a direct-to-consumer pharmacy. Chaldal is expanding rapidly: as of September 2021, the platform claims it has grown by 120 percent over the last year, with some 40 million USD revenue; it has plans to enter 15 new markets and expand from 8,500 products to 30,000 by the end of 2021. See Shu (2021). for more details.

At the time of data collection (mid 2021), Chaldal had over 350 suppliers. These include large multinationals (such as Unilever), with which Chaldal has partnerships. However, Chaldal also sources goods directly from farmers and manufacturers and works with smaller-sized wholesalers. Chaldal plays an active role in identifying and selecting suppliers. To meet customer expectations, Chaldal must have certain goods in stock, as well as offering a variety of brands and price points. At the same time, warehousing goods that do not sell is costly. For that reason, Chaldal seeks suppliers for goods with high turnover, and expects suppliers to have a marketing budget and plan to ensure their goods sell. Suppliers must also provide all required licensing and certification, such as relevant licenses from the BSTI (Bangladesh Standards and Testing Institute), IRC (Import Registration Certificate), and VAT registration. Firms must deliver the goods to Chaldal’s central warehouse, then wait until the goods are sold before payment. Firms must also have packaging suitable for the delivery model.

For suppliers, working with Chaldal would be similar to supplying large, modern brick-andmortar supermarkets, even if the digital model makes it easier for consumers to search by category or brand and compare prices. However, these large brick-and-mortar supermarkets are not common in Bangladesh where most groceries are still relatively small stores with limited capacity. Chaldal’s larger inventory allows it to stock newer or less established brands. Supplying firms also save on the cost of establishing distribution channels by distributing to Chaldal’s central warehouse, rather than many small stores. For the smallest firms, however, licensing requirements, the need for marketing, and the need to wait until goods are sold may limit their ability to sell through Chaldal. For firms that have trouble with licensing or marketing, Chaldal’s legal department can provide some advice on how to obtain the required licenses. Chaldal also offers partnership marketing to firms, which can help them advertise their product via Chaldal’s website and social media accounts as well as through Google and Instagram ads.

The second platform is Daraz, an e-commerce marketplace established in 2015 which operates in Pakistan, Bangladesh, Myanmar, Nepal, and Sri Lanka. Compared to Chaldal, Daraz reaches a much larger market as it reports some 35 million customers and 100,000 vendors. As a separate part of its platform, Daraz operates online grocery stores with same-day delivery. Since 2018, Daraz has also operated its own delivery service, Daraz Express, which operates warehouses and facilitation centers and first/last mile delivery. The company estimates that 60 percent of deliveries through its site use Daraz Express.

Daraz offers multiple advantages for even very small or new businesses. The platform aims to make selling on the site accessible to anyone with a smart phone, and provides a quick, threestep online process to start a store on the platform. No office, start-up capital, or employees are needed. Daraz offers vendors short online training videos on all aspects of setting up and running an online store on the platform (Daraz University). Their sales center also provides links to Businessto-Business (B2B) providers who provide support services such as product listing write-up, site management, photography, and packaging (Daraz Vendor Support Center).

5