Tag Archives: johannesburg
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 — [...]
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 [...]
How to Create Killer Product Pages
We all want to be complemented for our Online Shop. We put a lot of time, thought, effort, hopefully some creativity, or we may have even hired a costly agency to take care of the whole caboodle. But people don’t seem comfortable on the site and aren’t making purchases even though you have plenty of traffic per month. – Sound familiar? Well, researchers found that there are just 3 primary things which prevent product “browsers” from being product purchasers. These are: Insufficient Product Information. Too Small Product Image. Too many distractions. To get a complete overview of the top 21 point in online sales, keep reading below.
For Small Biz: Your Website is Your Cash Register
There is some particularly great information and tips towards the end of this Infographic. For a comprehensive eCommerce solution for South African Small business check out CloudSales.co.za.
Welcome to Ecommerce News Africa
This is the birthplace of this site which hosts a compilation of the most relevant and hottest trends in South African Ecommerce as well as relevant trends throughout both developed and emerging ecommerce scenes internationally. If you are looking to become an ecommerce fundie, build-up a basic understanding of ecommerce and its application for you, than this is the place to be. For contributing articles and input please contact: jonathan@cloudsales.co.za
