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Monthly Archives: July 2013

Sellers adopt savvy measures to entice online shoppers

E-COMMERCE is going through an innovative phase of development as more individuals have access to the internet and more retailers take their businesses online. Internet users in South Africa reached 13.2-million in 2012, up from 11.2-million in 2011, according to World Wide Worx. “We are forecasting an increase of 2.7-million new internet users this year, 2-million of whom will be mobile users,” says MD Arthur Goldstuck. This figure does not include new tablet users who have typically had previous internet access using another type of device and are therefore included in the previous figures. The main online activity of mobile internet users is sending and receiving e-mails, followed by browsing and surfing for leisure, followed by online research, says Mr Goldstuck. He says in 2012 South Africa’s online shoppers spent a total of R3.38bn on purchasing traditional retail products — not including air tickets, accommodation and travel — reflecting a growth of 30% over 2011. “We are expecting a further 25% growth in online retail this year,” he adds. Mr Goldstuck says dominant new online shopping trends tend to emerge every two years. He says four or so years ago saw the rise of websites allowing rand purchases of products aggregated from overseas sites, particularly electronics goods, and two years ago group buying websites started making a major impact on the market. “More recently we are seeing a new category of high fashion websites such as Zando and City Mob emerge, which aggregate name brand clothing.” These online retailers differentiate themselves with low-cost delivery and the ability to return goods, whereby the courier waits while the customer tries on the clothing. Liz Hillock, head of marketing at Kalahari.com, says the highest conversion rate of internet users from browsing to buying is among tablet users. “Last December we sold three-and-a-half times more tablets than laptops, and these users have a higher propensity to shop online.” As a result, online retailers and other e-commerce oriented businesses are designing their websites to cater for tablets and other mobile devices, she says. She says the recently released 2013 annual Kalahari.com Mobile and Tablet Survey shows that 92% of online shoppers own a smartphone compared to 78% last year, and 68% have purchased items online using their phone. The survey also shows that 47% of respondents own a tablet compared to 34% last year. Ms Hillock says more experienced online shoppers are buying an increasingly [...]

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MasterCard Online Shopping in South Africa [Infographic]

Here you will see the latest trends in online shopping in South Africa and the impact which both good customer support as well as the credit card penetration is having in the online retail economy.

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South Africans Highly Satisfied with Online Shopping – MasterCard Survey

Online shopping sites that offer an easy, convenient shopping experience attract loyal customers Tweet: #MasterCard Online Shopping survey reveals online retail trends in South Africa http://bit.ly/122NEFR Cape Town, South Africa – 27 June 2013 – The latest MasterCard Online Shopping Survey has revealed that a substantial 91% of South Africans who shop online are highly satisfied with their overall experience, a 4% increase from the 87% who said the same thing in the 2012 survey. A further indication of South Africans’ positive sentiment for online shopping is that 76% of respondents return to an online shopping site that they have used before and 74% expressed that they felt it was both easy and convenient to make online purchases. These figures show slight increases – 2% and 1% respectively – when compared to the previous survey’s results. Despite this positive sentiment towards shopping online, the number of South Africans accessing the Internet to shop online is down 4% from the previous survey, with 54% of respondents saying that they usually use the Internet for shopping. “While online shopping continues to be a regular Internet activity for more than half of South Africans who are actively online, there is a slight shift downwards in their online purchasing behaviour, which could be attributed to the slowdown recorded in the economy during the survey period,” says Philip Panaino, Division President, MasterCard, South Africa. “This is supported by The South African Reserve Bank noting in its fourth quarter review of 2012 that retail activity was disappointing as consumer spending was negatively affected by a pickup in inflation.” “There has been a rapid rise in the number of South Africans classified as active Internet users – those who fairly recently acquired regular access to the Internet – which means we are seeing a larger-than-ever base of users who have never shopped online before,” says Arthur Goldstuck, Managing Director of World Wide Worx. “These users add to South Africa’s population of more experienced Internet users – those who have been online for five years or more – which has increased significantly from under four million in 2012 to around 4.6 million this year. This means that even as the amount spent online keeps rising steadily – at more than 30% a year according to our data – the proportion of users shopping online is declining, which ties in with the decline MasterCard has recorded of active online [...]

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