The Rise of South African Ecommerce

South African ecommerce is booming, following a 50% rise in online spending compared to the previous year. In comparison to European markets, South Africa’s ecommerce industry is still in its infancy with only a quarter of spending through digital channels. However, there is no doubt that growth is strong thanks to high mobile penetration, secure payment options and changing spending habits as more of the population shift their budget to shopping online. This is set to consistently rise as more and more bargain-seekers are heading online to buy technical consumer goods such as cell phones, electronics, and home appliances. While traditional stores still dominate the market, they are not experiencing the same soaring growth as ecommerce retailers with regards to technical goods such as laptops, gaming consoles and televisions. Price fuels ecommerce boom Price has always had a huge influence on purchasing behaviour and with two-thirds of the top 100 sellers offering cheaper prices through their digital stores, it is no surprise why ecommerce is on the rise. Combined with the added incentives of attractive web promotions and seasonal discounts, bargain hunters and deal seekers are finding online shopping a dream come true. Convenience always wins There is no doubt that most people have an omnichannel experience, as 48% claim they made an online purchase after seeing the product in-store. Mobile is also playing a very important role in the purchasing journey with two-thirds using their phone to shop in the past six months. This is due to the fact that convenience is another major reason why people choose to shop online. They have access to a wide product selection at their fingertips where they can compare reviews and have the instant gratification of buying something with the click of a button. No more missed deliveries One of the main barriers to online shopping in South Africa has always been a lack of delivery options. 58% of people who have not shopped online agree on having the fear of missing a delivery or waiting around all day, high delivery cost and lack of appropriate address were all reasons for concern. Reliable Click and Collect delivery services like Pargo Pick Up Points now ensure customers never have to miss a delivery again. The option to conveniently collect parcels on-the-go from over 1,500 retail stores nationwide has made online shopping a hassle-free experience, enticing more people to shop online. This flexible alternative to traditional courier services is enabling ecommerce to continue growing in South Africa by guaranteeing no more missed deliveries. The shifting trend For now, traditional shopping habits still dominate in South Africa however, with almost half the population set to make an online purchase in the next year, it is clear that the ecommerce market has huge potential and will continue to grow year on year.
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