Online shopping in South Africa set to explode

Online shopping has taken South Africa by storm over the past few years. Combined with improved technology, SA customers can enjoy purchasing goods from anywhere, anytime, at their own convenience.

So what’s the buzz on the online marketing scene in South Africa? In this post, we talk about how online shopping has become part of many SA customer’s lives.

Where we’re at

South Africa isn’t always first or even on par with the latest international trends, and it always seems as if “invention” only arrives much later on our doorsteps. The same can be said for e-commerce in South Africa.

Many international businesses have been thriving online since e-commerce came to the scene in the early 90’s. It’s reasonable to consider that South Africa is only now starting to boom with bright prospects for the future regarding online shopping and e-commerce. And we’re here to tell you that e-commerce is set to explode in South Africa with limitless potential.

Many marketers and analysts agree that there is good potential investing in South Africa’s e-commerce scene. Online shopping is one of the biggest sources of income in the online industry and South Africans are known to spend more online for fast food and international purchases than they do purchasing groceries.

In fact, many people prefer brick and mortar stores when it comes to clothing and certain accessories. According to Fin24, the average South African spends an estimated 3 hours online with their mobile devices and 25% of them shopping online via local stores.

How B&M stores differ from online shopping

Brick and mortar stores

Location

Classic brick and mortar stores offer the customers more of a personal approach with a team of staff (real people) you can interact with regarding your transactions.

Time factor

Many people enjoy the immediate effect of being able to get your goods at the same time after you’ve paid for them.

There is no waiting period at all, unless the store is waiting to purchase more stock or there’s a delay at the suppliers.

Advertising

Many brick and mortar outlets utilize the traditional marketing tactics to get the word across. These can include everything from billboards, business cards, and pamphlets to name a few. They don’t always reach as many potential prospectives as in digital marketing, but in most cases, brick and mortar stores have been long established and managed to already build a strong market and customer base.

Personal approach

With brick and mortar stores, customers can receive immediate help and the attendance of a “physical” salesperson. When there are any problems even with payment such as being able to use their credit card, it can be dealt with right away.

The digital industry (e-commerce)

When you think about it since the evolution of the World Wide Web, more and more people are turning to a “digitalized lifestyle”, where everything is about function and convenience.

The software used to create websites and online tools to help business owners improve themselves online has made digital shopping a reality.

To keep up the pace with the long-established brick and mortar stores, online stores go every step to make things even better for their customers.

Location

Customers who do their shopping online make use of the common virtual shopping cart to keep all their chosen items in one place.

Payments are done online and goods are delivered to the address requested.

Time factor

While the convenience of being able to shop from anywhere at any time is great to most of us, some people however, dislike the waiting period as the supplier needs to acquire stock, package and then send for delivery. Depending on when the customer buys, public holidays and weekends may delay the time of arrival.

Advertising

Promoting the goods for sale often relies on digital marketing tactics and knowledge to reach potential and existing companies. Digital marketing options include e-mail marketing, paid adverts and social media channels.

Personal approach

Even though there is chat boxes and people on standby to assist (time related), some customers don’t have the patience or energy to browse for possible answers to their questions. The FAQs are there as a quick solution by not having to consult an actual person for help, however, this lacks the personal approach some customers prefer.

Going strong in 2018 and beyond

When we look at online shopping in South Africa, another thing is true; the consumers in SA are finding the sheer convenience something they won’t easily abandon. People often purchase apparel and electronics online.

With fair returns policies, refunds and constant improvement of customer experience, the online shopping world is growing steadily by increasing their sales each year. With large online markets such as Amazon and Takealot.com, people can shop for virtually everything, including perishables like alcohol, food items and flowers.

Brick and mortar stores, however, are getting on board and frequently feature their brick and mortar store’s online shopping options. If you think about it today, is there any brick and mortar shop without an online store that you can think of? If so, they don’t make up the majority of the market.

Brick and mortar stores, as well as, online shops may only specialise in one market, for example, selling jewellery, or pet care items, but still, the possibilities of them growing their income are largely increased. This brings us to the next order of business…

Why is online shopping so successful and why are the growth expectations so high?   

According to statista, the prediction for phone users around the world is said to increase to more than 4.5billion by 2019. In South Africa, the numbers are soaring, as more people are comfortable with using their mobile devices to shop online.

Advantages of online shopping  

1. Mobile efficiency

One of the strong contributors to people being able to use e-commerce so freely is because of the affordable smart mobile devices available.

These days you don’t need to own a computer to purchase goods online. Nor do you need to sign up with a catalogue mailing system to enjoy the convenience.

These days, all you need is a smartphone and you’re set. More than half of the population makes use smartphones and this gives people the freedom to shop whenever they want.

2. Easy, safe payment solutions and options

Payment options are another aspect that’s greatly increased the online shopping frenzy in South Africa. These days it’s not only limited to credit card users, instead the options include safe payment methods like escrow, PayPal and Bitcoin to name a few.

You don’t even have to leave personal details to pay for your goods, making digital shopping even safer. Online security is becoming more and more efficient and smartly limiting the opportunity for security bridges and fraud.

3. Affordability

When compared to brick and mortar stores in South Africa, e-commerce is great for entrepreneurs and their loyal customers. With online come fewer expenses for the entrepreneur than when running a brick and mortar operation. There aren’t the same expenses involved like staff salaries, rent and utilities, so they can offer better prices when compared to traditional shops.

With brick and mortar on the other hand, customers have to contribute to the store’s expenses, which are calculated in the item’s final price. South Africans enjoy scoring a bargain, and this is why shopping online get’s SA customers coming back for even more.

4. Ease-of use

When it comes to searching for products online many stores provide easy to use navigation and search filters to allow customers to find what they’re looking for. In a standard brick and mortar store, you cannot just step inside and know where to find the item you’re looking for.

5. Saving time

When going to a traditional store, you spend time travelling to the destination, and then more time spent in queues to pay for goods and fitting rooms at “bargain den” stores. Customers also don’t have to worry about trading hours, as most online stores allow the flexibility of shopping at any time.

6. Meeting their customers’ needs on time

Online stores also carry a degree of responsibility because besides safety and security measures, they also have to ensure that the goods are dispatched at the said times to meet deadlines for delivery.

7. Reduces impulse purchases

Physically moving about while doing your shopping usually tends to work up an appetite and while you’re out you might as well stop for a bite right? This not only adds to a customer’s additional expenses, but also gets them to impulsively purchase things they didn’t intend to buy.

Online shopping doesn’t make room for all of that and a customer spends less plus score on the initial product prices they’re purchasing online.

8. No need for lines and looking for parking

Even if the weather was pouring cats and dogs, shopping online reduces the chances of having to go out in the cold.

Customers can also enjoy skipping the lengthy queues at the store, not to mention never having to look for the ideal parking space preferably close the entrance.

The Takeaway

When weighing all the factors together, it’s clear that South Africans are enjoying the ease and flexibility online shopping has brought about. Even though we’re not as advanced as leading e-commerce countries such as USA, UK and Canada for instance, we’re doing pretty well and advancing swiftly.

Not only is online shopping a major time-saving factor in today’s busy world, but it also helps customers to enjoy being able to multitask no matter if they’re on the move, or at their office desk. As we’ve mentioned before online shopping also saves the customer much more money than when physically gracing a brick and mortar outlet.

Many e-commerce stores invest in quality online tools to help give their customers a better experience without lacking in security. In a nutshell, online stores have gone far and beyond to reduce the stress factors related to having to physically do your shopping.

If you own a physical store, maybe you could consider adding an online store in the future. If you already sell online, then consider leveraging social media marketing to create awareness and drive traffic to your e-commerce store.