The South African eCommerce has a value of between R6-7 billion, the eCommerce sector in South Africa is growing at a rate of more than 25% per year. With stats like these, the South African eCommerce sector opens up an opportunity for online shoppers and online shop owners.
How do South Africans shop online?
- Statistics gathered during the 2015 South African eCommerce Awards survey showed the following:
- The majority of online shoppers were women aged between 18 to 39;
- The majority of South Africans spend between R250 and R1000 when making a purchase online.
- 33% of those surveyed made 10 or more purchases online per year; and
- 28% of shoppers make online purchases using their mobile phones;
- The busiest times for online stores were after the 25th of each month;
- The average basket size in South Africa stood around R725 per order; and
- That 70% of all online transactions were paid for with a credit/cheque card.
In the past, business managed a physical store or expanded the target market via mail orders. Since the advent of the Internet, all businesses are given the opportunity to service the globe, allowing them to compete with physical shops worldwide.
The advantage of selling a service or products online via an ecommerce store; If done correctly and if the business owner actually uses the store and promotes it, they could see an explosion of sales and tremendous growth in their business over time because they are no longer limited to selling their products locally.
Gain new customers with Search Engine Visibility: Physical retail is driven by branding and relationships. Online retail is driven by traffic from search engines.
Lower setup costs: An e-commerce solution equals fewer overheads and these lowered costs could be passed on to customers. Lower costs equals more sales.
Save on Marketing and Advertising: Search engine traffic, pay-per-click, and social media traffic are some of the advertising channels are more cost-effective compared to audio-visual medias, like radio or TV.
Product display Information: E commerce websites can make visual information easily available to customers. Products can be described in detail with visual images and video’s. It further saves time per transaction. You don’t need sales representative to take time to demonstrate your product to any customer.
Sell in any geographical location: If you have a physical store, you are limited by the geographical area that you can service. With an ecommerce website, the whole world is your playground.
Open All the Time 24/7/365: Ecommerce shops can run all the time. From the seller’s point of view, this increases the number of orders they receive. From the customer’s point of view, an “always open” store is more convenient.
No need to keep stock: The advantage is that the shop owner could re-sell other products from other vendors that they drop ship on behalf of the shop owner.
Based on our experience of being in the online eCommerce business for over 11 years, eCommerce websites are becoming more popular by the day. Business owners are becoming internet savvy and they are always looking for different ways to increase revenue. It is a logical step forward to take their physical business online. By redistributing products and services online it increases the selling potential of products to be sold online.
With the right marketing techniques, support and operational strategies, small ecommerce companies can compete with big brands to stay relevant and get a slice of the pie.
One of the major frustrations that new online ecommerce owner’s face is hosting, back-end administration, support and training, our approach is a complete turnkey solution.