Adverse impact of internet shutdown on e-commerce and social media marketing in Bangladesh

Abstract

The rise of e-commerce and social media marketing in Bangladesh has been a significant driver of economic growth, fostering entrepreneurship and expanding market accessibility. However, the frequent shutdowns of internet services, often due to political or security concerns, have posed substantial challenges to the e-commerce sector. Very recently Bangladesh has experienced internet shutdowns for prolonged periods that have had profound implications for e-commerce and social media marketing endeavors. This study examines the ramifications of this shutdown on the digital economy, focusing on the operational and strategic challenges faced by E-commerce businesses and social media marketing activities. During the latest internet shutdown episode, E-commerce platforms witnessed a significant decline in sales compared to periods of regular and uninterrupted internet connections. The inability to place orders and to process online payments by the consumers coupled with the failure to manage inventory by the sellers effectively were the key factors behind this decline. Social media marketing was severely impacted as well, with a huge reduction in engagement metrics due to disrupted content delivery and advertising efforts. To adapt to the sudden disruptions, E-commerce businesses responded by shifting to offline sales and alternative marketing channels. However, these measures helped only partially to recover the financial losses incurred by the disruption. By utilizing data from market reports, online retail platforms, and consumer surveys, the research highlights the immediate and long-term effects of internet shutdowns on online sales, business operations, and consumer behavior. The findings highlight the critical role of internet connectivity in modern business operations and suggest businesses’ need for robust and adequate contingency plans to address such disruptions. The study contributes to the understanding of the digital economy and social media marketing-related vulnerabilities and offers insights into strategies for enhancing resilience against internet-related disruptions.