Whereas dhakashop.com has drawn 3,000 registered users since the site's launch in January 2005, clickbd.com boasts 10,000 registered users since April 2005.

While in the US and in Europe online auctions mean big business with Ebay currently worth 50 billion dollars, online auctioning in Bangladesh has yet to get a foothold. Ebay is a US-based online auctioning site. Delwar Hossain of dhakashop.com and Humayoun Alamgir Jewel of clickbd.com have set out to change the notion.

They believe the country is ready to engage in online auctioning. And with the submarine fibre optic cable finally on its way to Bangladesh next year and approximately 500,000 Bangladeshis connecting to the internet regularly, the two entrepreneurs just might be right.

Hossain and Jewel have a lot in common. They were both educated in the US, worked in US software companies, but decided to return to Bangladesh and set up their own IT companies. Concerning their business strategies, however, Hossain and Jewel are fundamentally different.

On clickbd.com Jewel stresses a non-commission strategy. "People offer their products for free," Jewel explains. This is different from what most auctions sites in the US and Europe are doing. Jewel believes that what works for the developed world does not necessarily have to work in a developing country. Depending on the offer, Ebay takes one to five percent commission on sold products. Jewel thinks this will not work in Bangladesh.

"We want to get people involved in online auctioning -- then we will think of making money," says Jewel. With 10,000 registered users -- 2 percent of online Bangladeshis -- he has already achieved much awareness for clickbd.com. Since April 10,000 registered users from all over the country have traded 5,000 products. The most expensive product sold on the site was a Toyota Corolla for Tk 5 lakh.

In a second stage, Jewel is approaching large shopping stalls, interested in doing e-commerce. "We are offering a complete e-commerce package on our highly frequented site and charging them for these services: Ordering, virtual store, customer service, accounting and delivery," Jewel explains. His goal is to create a diverse online shopping stall offering everything from groceries, over mobile phones to cars.

Hossain's approach is different. He believes in charging users for trade on dhakashop.com. This should make his business more sustainable, he believes, but also explains why -- compared to clickbd.com -- only 3,000 users have registered to his service. "My long term goal is to make my site the Ebay of Bangladesh," Hossain says.

He sees the developments in India as a role model for Bangladesh where baazee.com was bought by Ebay in June 2004 for $50 million. "Ebay is currently reviewing our site and I hope it will agree to some sponsorship. This will make our business naturally even more sustainable," Hossain explains.

Both clickbd.com and dhakashop.com have got off to a good start in 2005. But before either of them start becoming profitable, there are obstacles to overcome -- for both commission and non-commission based offers.

To maintain the sites professionally, they need teams of six to seven staffers.

Hossain and Jewel have large pay roles and office fees of around Tk 50,000 monthly. Both sites are therefore in need of bigger user groups to break even. But how fast these numbers grow?

500,000 users are still only a fraction of the entire Bangladesh population. Using the net also requires a certain amount of technology literacy, something that a large number of the population lacks. The main obstacle, however, comes from e-commerce itself. The central bank is yet to set up online credit card payment systems. Apparently, banks fear money laundering and online credit card fraud.

clickbd.com and dhakashop.com users currently pay cash for auctioned products, with buyers and sellers setting up personal meetings to exchange money and goods. Jewel would rather have customers pay cash or by bank cheque on delivery, so as to keep track of which product was sold in the database. Hossain, however, is happy with customers' meeting up and settling money matters bilaterally, as long as credit cards cannot be used online.

The advantages of online auctions and shopping are apparent. Firstly, customers don't waste time commuting to overfilled markets, secondly, buyers are much less vulnerable to price hikes, as competition of the vendors is greater in a one-stop-shop, thirdly, information on vendors is more easily accessible as previous buyers comment on certain vendors in forums and warn future customers.