Tag Archives: online store
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 [...]
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.
In early 2013, the Boston Consulting Group published ‘Ten Things to Know About African Consumers’. Seven out of ten of these continent-wide trends are likely to boost online retail growth and B2C e-commerce in Africa. I’ve listed the brief below. Optimism about the Future – African’s, with the exception of Northern African nations are exceptionally positive about future economic developments. By and large, Africans are very entrepreneurial. Partially due to a lack of established career paths and an inadequate formal education structure, ambitious individuals tend towards creating new opportunities. Techno- Freaks – There is wild craze for all things digital and the speed and scale the internet and technology uptake is driving major change and economic opportunities. From football clubs to soft drinks, the African continent loves the international brand. This is a big selling point for international players with a serious brand appeal of value add. Massive discrepancies are often found in official market data and real markets, which include parallel and informal sector sales, can often be much higher and reflect greater opportunities. Quality sells. Despite higher prices, a better value-add and long-term investment coupled with higher prices can conquer market share. Look at the Toyota brand, but there are many other examples to back this up. Successful, modern retail outlets, greater varieties and cheaper products drive the cognizant African consumer. The evolving retail preferences on the continent imply that if online retail can offer convenience as well as opportunities for cost-saving, then it has a bright future in the coming years. While online retail has a ways to go, more affluent markets in Africa are ready for the practice and as the rapidly growing economies begin to stabilize it is expected that a massive wave of online e-commerce will follow. Africa may be lagging in online stores and e-commerce, but with growing wealth and broadband availability a massive spike is expected of the 3-7 year period with growth of between 20-25% in the next 3 years leading up to it. For more see: www.bcgperspectives.com and for Online Retail Solutions & e-Commerce Author: Jonathan D. Novotny is an e-commerce evangelist and co-founder of the CloudShop/CloudSales online retail franchise.
Online retail businesses are a popular option for entrepreneurs with minimal capital to invest up front. What’s more, online retail is a great business to run as a home-based, solo, parent or part-time entrepreneur. It can also be a fantastic outlet for your creative talent or hobby. So you’re asking yourself—what does it actually cost to start an online retail business? We’ve got a real-life example for you: Amy Weaver, corporate refugee and owner of a new online greeting card company. Amy took her creative ideas about a tried-and-true product—greeting cards—and launched her own online retail business. “Your words, not ours” is the humble tag line that sums up the unique niche of Amy’s Whoopzie Daizie Cardz. “I’m a card addict,” Amy explains. “But for me, greeting cards always seemed a little over the top—the glitter and the butterflies and everything else. I just want them to be simple. Maybe start a thought or give a good impression of what the card will be about on the front, and then let me fill in the words.” Amy, a 32-year-old Dallas resident, began thinking about starting her own business more than a year and a half before she taxied down the runway. Her career as an airline property manager left her feeling confined. “Both my parents had their own companies, and I always felt claustrophobic working for someone else,” Amy admits. “So I’ve been attracted to the entrepreneurial lifestyle through experience.” “I was drawn to the card industry because it’s a low-risk industry,” she continues. “Other than printing cards and the other basics, it’s pretty low cost—it’s not like I’m building superconductors.” To finance her startup venture, Amy secured a $30,000 line of credit from a Texas bank and tapped into personal savings to keep up with her regular living expenses. While securing a line of credit is not typical for a startup that has been in business less than two years, many entrepreneurs are able to leverage personal savings, credit cards, friends and family or home equity loans to get started. Amy then mapped out three critical areas on which to focus her financial resources in the initial startup phase: designing a dynamic website creating a top-quality product implementing a strategic marketing program. Let’s take a look at these priorities one by one. Designing a dynamic website “First, I had to have a wonderful website because essentially [...]
It seems as if the whole world has recognized the need for responsive sites and nowhere should that acceptance be more evident than in emerging markets such as South Africa, where most of the new online data consumers (and the next generation of online retail consumers) first got online via a mobile device. Yet established players are hesitant to switch systems and seem to hoping all those pesky small devices are just going to go away. The good news is: “They’re not!” According to both predictions and sales reports, tablets are not the future, tablets are the NOW. T-Commerce (online sales made via tablet devices) grew by almost 100% in 2012 and I’m curious how 2013 will shape up. While I think Microsoft may have been a bit early with an immersive, mobile-oriented OS, it is plain to see that if the largest software developer is creating flagship products targeting mobile devices, than perhaps we should too. The mobile trend is here to stay and it is only a matter of time until the till becomes the tablet. Romero, of bitesizebschool.com says: ”Mobile/social/wireless communication is what people are buying, not desktops. Laptops, tablets, phones and peripherals will work better together in the months to come. Cables are and will continue to disappear.” Author: Jonathan Novotny Jonathan Novotny is Author, Speaker and Social Entrepreneur in Africa. He currently heads up www.changetheworld.org.za and is co-founder of www.cloudsales.co.za .
The Yuppiechef success story has been well documented, but until now, no one has been able to explain exactly how the kitchen utensils e-tailer has managed to evoke the type of fervent support that has catapulted the Cape Town company well into cult territory. Yes, cult. Exhibit A: a Pinterest page dedicated to customers who have submitted photos of their pets in Yuppiechef packaging. The running theory is that Yuppiechef has mastered the art of customer service. It’s a strong hypothesis. Yuppiechef boasts 99% positive feedback — read worship — on customer service watchdog Hellopeter, as well as a consistent stream of accolades awarded on the basis of irreproachable customer service. Consider then that 60% of Yuppiechef purchases are from repeat customers and it seems an open and shut case — Yuppiechef is indeed a “customer service business who happens to sell kitchen tools”. Yes, perhaps being extra courteous and efficiently dealing with customer queries can explain the 300% year on year revenue Yuppiechef recorded in 2011. In 2012, Yuppiechef added to its staff of 16, reaching 54 by the start of 2013 — perhaps free delivery of its select product range, strong social media engagement and the handwritten thank you cards that accompany every purchase grew Yuppiechef’s revenue enough to sustain 38 new employees. Perhaps. A reliable source revealed to Ventureburn that Yuppiechef is currently recording gross annual revenue of R80-million with a 20-30% profit margin. When we approached the stealthy kitchen utensils e-tailer for comment, Yuppiechef marketing director and part owner, Paul Galatis, opted to keep the company’s figures private. Yuppiechef is not at liberty to discuss its financials, but then again, the company’s culture doesn’t particularly lend itself to that kind of thing anyway. “We don’t celebrate or measure our financial results. Instead we celebrate the constant stream of positive customer feedback that customers send to us and post online and we share it on a daily basis within our team,” Galatis told Ventureburn. We remain intrigued to have not received a flat out denial of the rumour, however. In 2011 Galatis revealed that Yuppiechef was “verging on profitability.” Given this knowledge, Yuppiechef’s confirmed 100% year on year growth in 2012 and the reliability of our source, we started exploring an alternative theory for the company’s apparent surge. Yuppiechef is a quiet overnight success, six years in the making. Today, the company boasts social numbers such as [...]
The ecommerce shopping cart is a software package that accepts customer payment and shipping information and facilitates the distribution of that information to merchants, payment processors, or others. At the surface, an ecommerce shopping cart is really something that every beginning online merchant intuitively recognizes. For example, almost no one would consider opening an online store without having made a few purchases online themselves. In the course of buying books from Barnes & Noble or clothes from Gap, that new ecommerce entrepreneur no doubt encountered a shopping cart. From the consumer’s perspective, an ecommerce shopping cart may seem like little more than a web form, little different than an email newsletter subscription or an online registration form. BY ARMANDO ROGGIO at Practical Ecommerce
When the founders of a start-up that sells eyeglasses online, Warby Parker, began investigating why designer glasses cost several hundred dollars, they discovered that everyone in the process was taking a cut: designers, manufacturers, brands, wholesalers and retailers. Warby Parker’s Manhattan headquarters includes a showroom. The company plans to open a stand-alone store soon. But what if they left out most of those people? “I had been to the factories and knew what it costs to manufacture glasses and knew the cost didn’t warrant a $700 price tag,” said Neil Blumenthal, a founder of the company. Inspired by glasses they found in their grandparents’ attics, the founders sketched a few frames, hired the same Chinese factories that make designer glasses and started selling directly to consumers online. By doing so, they eliminated enough of the cost to charge customers just $95 a pair. Warby Parker is part of a wave of e-commerce companies that are trying to build premium brands at discount prices by cutting out middlemen and going straight to manufacturers. They make everything from bedding (Crane and Canopy), to office supplies (Poppin), nail polish (Julep), tech accessories (Monoprice), men’s shoes (Beckett Simonon) and shaving supplies (Harry’s). The result is generally cheaper products for consumers and higher profit margins for the companies. Big retailers discovered long ago that controlling the supply chain benefited their bottom lines, which is why companies like Wal-Mart and Whole Foods sell many products under their own brands. At Macy’s and Kohl’s, such “private label” brands make up almost half of their sales. Start-ups have traditionally struggled to match those efforts. They do not have as much brand recognition as big retailers, and persuading consumers to take a chance on, say, Warby Parker eyeglasses instead of Prada’s can be difficult. “The challenge is, if you’ve never heard of the brand, you wonder, ‘Should I buy it when it’s 20 percent cheaper?’ ” said Raj Kumar, a supply chain consultant at A. T. Kearney. “Or should I buy a brand I trust?” What is empowering the upstarts now is the Web’s ability to reach lots of consumers without the costs of operating physical stores as well as a change in manufacturers’ willingness to work with small brands. The founders of Deal Décor, whose model was to sell furniture directly to customers, worked at Target and Home Depot Direct before starting their company. They said they saw an [...]
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 [...]
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 — [...]