Category Archives: eCommerce South Africa
How to Sell Online in SA …and be Successful
By: Jonathan D. Novotny | Founder of CloudSales.co.za Most online stores operated by small businesses in South Africa fail to provide the user with an experience which leaves them at-ease and confident about their order being processed and delivered. The good news is, most of these problems are easy to avoid. Let’s look at the most common issues and the simple solutions. Design: The usual design issues arise from the use of: Outdated, irrelevant structures – Ensure that you are using the latest version of one of the global most widely implemented platforms – These are currently OpenCart, Magento, PrestaShop or Shopify if you want a DIY solution with no hands on support available. Weird, unusual or incomplete themes – If you want to be pro, just purchase a quality theme. This is like your skin, and regardless of how good your structure is, if your site looks like a ‘90s website, you aren’t going to inspire confidence. Just downright bad product photos – Get better ones. Give people what they want – If they are looking for contact details, don’t offer them a form to fill out, or if they want to pay and order online, don’t ask them to fill out an order form “…So you can get back to them.” Functionality: If you have time to set up your store and are an IT genius then there’s nothing stopping you from implementing this yourself. Responsive Design means the website scales down to the size and complexity of the device viewing it. For example, mobile devices see a narrow site with small product images and a simpler menu. Automatic Invoicing – Keep in mind that some shoppers may not want to pay via credit card, so give them an EFT option or have the system send them an automated invoice for payment. Integration with SA Payment Gateways – or just setup your own PayPal account & link to that. Integration with Courier Services Special offers, Coupons & Vouchers – You may not be planning on using this straight off, but if you are investing time and thought into your solution, best make sure that it has everything you need to build on. The Vital Final Touches: Use more & larger Product Images. Most insecurity online comes from not seeing the product up-close-and-personal. So make it as easy as possible for your clients by having pictures from every [...]
E-commerce boom in South Africa predicted for 2013
SOUTH Africa will see a boom in e-commerce next year, according to Simon Leps, CEO of digital solutions provider Fontera Digital Works. “We are at a very exciting time for e-commerce in South Africa. A lot of the big brands have started to take notice and have realised they could be left behind. Locally, we have plans for about 10-15 e-commerce sites to be launched next year for our clients,” Mr Leps says. By global standards, the e-commerce platform in South Africa is small, but as the timidness of local shoppers fades, a growing number of time-poor and techno-savvy consumers are turning to the internet for retail therapy and bargain hunting. Research by World Wide Worx, commissioned by Google, indicates that online retail is becoming increasingly popular in South Africa, growing at a rate of 30% a year. Online shoppers continue to increase locally, with 58% of the country’s 8.5-million internet users shopping online, and with the industry consensus aiming for 40% growth this year the highest rate in almost a decade. E-commerce start-up Zando recently landed an investment in the “three-digit million-rand” band from the asset management division of the global investment powerhouse JPMorgan. Zando is an online fashion store that sells local and international brands. “Attracting such a reputable international investor to support our future growth shows commitment and confidence in our business. This investment will assist the business by supporting its vision and all of its operations,” Manuel Koser, joint MD and co-founder of Zando, says. In order to gain market share from competitors Foschini‚ Woolworths and Truworths, fashion retailer Mr Price in July launched its online store‚ which allows shoppers to have their purchases delivered to their street address‚ post office or store for R35. “An online selling capability will enable Mr Price to further strengthen relationships with our target customers‚ who are tech-savvy and require a convenient and secure way to get their fashion‚” Mr Price CEO Stuart Bird says. Mr Price Home and Mr Price Sport are expected to follow with online stores next year. Woolworths CEO Ian Moir says the group’s online store is going well. “We’re seeing significant growth, but from a small base. We’ve invested a lot in our digital strategy, we’ve replatformed the site; it has our entire catalogue on now.… We’ve invested in better solutions in terms of picking and packing from stores, the distribution to the customers — [...]
6 of South Africa’s hottest ecommerce sites
When it comes to tech startups, ecommerce is at once an easy and tricky space to play in. It’s easy, because to get going all you really need is something to sell, a good design and the right plugins. It’s tricky because people are trusting you with their money. You have to make sure you have the right security, and can guarantee delivery. It’s also not easy to stand out in a market like South Africa where broadband penetration remains comparatively low, forcing you to compete for place in a crowded space. There are a few that have done so well. They sell a wide variety of products, but generally occupy specific niches. The South African ecommerce awards recognises these sites on an annual basis. This year’s winners included sites owned by mega-corporations, while others are more independent. 1. Best ecommerce store — YuppieChef This online store claims it is “dedicated to making the world’s best kitchen tools available to South Africans”. According to the awards’ judging panel: The Yuppiechef website is a pleasure to use with fast, accurate search results and crisp clear images. The site is informative and the ordering process is streamlined and efficient. The delivery experience is incredible, ensuring satisfied customers. Customer service is responsive and attentive whether it’s over the phone, email or online chat. We loved the mobile site. 2. Best ecommerce services website — Bidorbuy The online auction site is an ecommerce stalwart in South Africa, having been around since 1999. In early 2011, it bought group-buying site UbuntuDeal “We enjoyed the fast and secure online shopping, an awesome mobile site and timely responses to customer queries,” said the judging panel. 3. Best group-buying site — Groupon SA The company might not be faring so well internationally, but the SA franchise maintains that it’s in it for the long-haul. With the like of Naspers’ Dealify and Avusa’s Zappon out of the game, it definitely had less competition for this award than it would have a year ago. “The website is easy to navigate with a wide range of deals of which the ordering process was extremely quick and straightforward,” say the judges. 4. Best classifieds website — Property 24 The online classifieds game is seriously hotting up, around the world as well as in South Africa. Some think they might even be the thing that finally kills off newspapers. According to the judges, the Naspers-owned property site won on the [...]
Imminent growth of South Africa’s e-commerce industry
The imminent growth of South Africa’s e-commerce industry presents a number of opportunities for business to leverage. However, it is also important to take cognisance of the specifics of the South African context to ensure that these benefits are fully optimised. Research by Morgan Stanley has estimated that sales of smart phones will exceed those of PCs in 2012, while research group Gartner has also forecast that smart phone penetration will reach 80% in South Africa by 2014. With the increase in smart phone users reaching a critical mass, combined with take-up of online and mobile payment solutions, this will lead to a rapid boom in e-commerce. According to Katherine Akeroyd at Step Advisory, a boutique professional services company, these two factors will significantly affect the online landscape for businesses in Africa over the next few years. “Internet penetration in South Africa has, so far, lagged many other countries, due to the high cost of access; however as more and more South Africans gain access to the internet for the first time through smart phone technology, this will radically alter the face of e-commerce in South Africa. “We have seen a number of new online payment solutions being developed including EasyPay and Virtual Card Services as well as the introduction of PayPal in South Africa. As consumers begin to understand that such services are secure, we are likely to see a far higher take up in online payments in South Africa. “In addition, we have also seen the emergence of successful mobile payment solutions such as Fundamo, a South African company that was bought by Visa, enabling people to make payments via an innovative e-wallet solution. It is positive to note that South Africa is at the forefront of technical innovation and as this solution is made available to local banking institutions, it will further drive confidence in online and mobile transactions.” As a result of this convergence between online and mobile payments, local businesses will be able to reach a far wider pool of potential customers than ever before. “While this change broadens the customer base available, it is also essential that companies that do aim to operate online conceptualise a robust strategy. Engaging with customers online is very different to physical interaction and companies need to develop their strategy for this online channel. “Businesses wishing to maximize their online presence must ensure that their products and services are [...]
It’s Time to Sell Online – Yaaaay!
If anyone had their doubts about it being the “Right time to start your online shop”, just check out the infographic below and any hesitancy will be eliminated. Of course, this highlights e-Commerce in a developed market. So let’s keep in mind that South African and African e-Commerce rates are growing about 300% faster here than in developed markets and now is the time to get your piece of the pie, before someone else does. ;-) This fear factor concept was hugely exploited by GoDaddy, the largest domain registrar globally at the recent Super Bowl Series Advertisement A Kiss You will Never Forget. However, truth be told, the best time to plant a tree was 20 years ago, and the second best time is NOW. [African proverb, or so I've been told] So begin your online shop preparations today.
[Infographic:] What is eCommerce?
Seriously, just the best overview of e-Commerce ever. A fantastic overview for beginners and experienced users as well. This explains “What is e-Commerce?”, “The Brief History of e-Commerce”, “e-Commerce Classifications”, “The Advantages of e-Commerce” and finally, “Where is e-Commerce Today”.
The Top Ten Burning Issues in Digital – eCommerce is No.2
Gian Fulgoni lists eCommerce as the number two Burning Issue in his article. What is more relevant to South Africa in the eCommerce context is that the necessary infrastructure to the eCommerce was never around, till now. This the key attribute which makes eCommerce still “the next big thing” in Africa, even after being around for decades in developed nations. The hot selling points for eCommerce and online stores are “lower prices, convenience and the broadest selection of products,” (Fulgoni, 2012) and what may surprise many SMEs, is that selling online is not an expensive venture any more with some of the new ecommerce solution providers, such as CloudSales & OpenCart functionality. Here’s what Fulgoni said in January 2013: 2. e-Commerce Driven by lower prices, convenience and the broadest selection of products, online consumer spending is soaring. comScore data show that in the last twelve months $304 billion was spent via e-commerce in the U.S., with Travel accounting for $110 billion and Non-Travel (aka Retail e-Commerce) pulling in $194 billion. Retail e-Commerce now accounts for one in every ten discretionary dollars spent by U.S. consumers and in Q4 grew 15% versus the prior year, a rate about five times faster than for all consumer spending at retail. Pure play online retailers such as Amazon and eBay have built massive businesses on the basis of e-commerce. Amazon for example, now attracts in excess of 110 million unique visitors in a month and reported North America sales of $7.9 billion in Q3, up 33% over the prior year. But the emergence of e-commerce also means that the physical store is under attack, which in turn means that those retailers who cannot maintain their in-store market share as their category shifts online face increasingly difficult times. Different product categories are shifting online at differing rates, creating particular challenges for multi-category retailers such as big store mass merchandisers. For example, the consumer electronics product category now sees about 30% of sales completed online while consumer packaged goods lags with no more than 1% of sales occurring via e-commerce. This means it’s particularly important for multi-channel retailers to monitor trends in their market share by channel and also by product category so as to clearly understand the nature of competitive online threats. The channel shift to online has also put downward pressure on prices, because the Internet allows consumers to easily root out the lowest price [...]
Mobile is Monstrous – So say the prophets.
Mobile is Monstrous, or so say the Online Sales predicting prophets. Jonathan Novotny, founder of SA innovation market-leader CloudSales, is so convinced of the “Move to Mobile” that all solutions implemented starting in 2013 will be native, mobile compatible. Paul Skeldon of Internet Retailing predicted that “more than half of consumers will buy Christmas gifts via mobile – 73% for the first time.” Now whether that benchmark will be hit or not is not relevant. What is relevant, is that South African small businesses should be looking at ways into the ecommerce foray and should not delay. “With professional packages starting from as low as R 299 per month for intermediate or even R99 per month for a starter solution, there is no excuse to sit on the side lines” says Novotny. Internet Retailing listed a number impressive results in the paragraphs below. Consumers worldwide are finally convinced by mobile commerce and are keen to use it for their seasonal purchases, with 55% of people across the globe likely or certain to buy gifts via their mobile device this Christmas, according to a global study by mobile media company BuzzCity. In the UK alone, despite never buying gifts via mobile before 47% of consumers are planning to purchase Christmas gifts via a mobile device for the first time this year. The poll also highlighted that around a third of consumers (31%) claimed that they are planning to spend over half of their overall festive budget on purchases via mobile, avoiding the traditional Christmas crush in favour of shopping from the comfort of their home or while they are on the move. Dr KF Lai, CEO of BuzzCity tells us: “These findings have given us the clearest indication to date that consumer trust in mobile shopping is higher than it’s ever been. The age of mobile commerce is finally here – and it has been a long time coming! It seems that the industry and retailers have done a good job of winning consumer confidence and trust to overcome the barriers that existed previously. This creates a very significant opportunity for advertisers and marketers wishing to reach their audiences via mobile at this time of year.” Convenience appeared to be a key benefit for those planning to shop on their mobile devices with almost three quarters of those surveyed (63%) saying they would be more likely to buy via their mobile [...]
