The increase in online shopping in South Africa presents an exciting growth opportunity for retailers, wholesalers and manufacturers, argues Deloitte in its latest report.
The report titled Digital Commerce Acceleration: “Increased online purchases present new opportunities for digital commerce players” states there has been an uptake in online shopping due to the COVID-19 lockdown in 2020, in South Africa and across the world. COVID-19 has challenged and shifted many of the barriers consumers have had to online shopping.
The research indicates that it will become increasingly important to design offerings that solve specific consumer concerns and use consumer insights to strengthen differentiation to accelerate digital commerce in South Africa.
Digital Commerce and online casino
South African consumers are discerning shoppers. More than two thirds (67%) of respondents indicated that they go to a specific online store and look for the product they want, argues Deloitte.
It is the same with an online casino, as customers are looking for specific ways to play.
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It is like buying stuff at Takealot, South Africa’s online delivery store. Takealot.com’s mission is to be the most customer-centric online shopping destination in Africa and has built a foundation on the simple concept that the customer comes first.
South Africa’s online market
The South African e-commerce market was estimated to be $3 billion(R42 billion) in net sales in 2019 and growing by a compound annual growth rate (CAGR) of 13% on average (2019-24).1 Over the next five years, e-commerce revenues are expected to grow by a CAGR of more than 9%, continuing on the robust growth path seen in recent years.
Deloitte argues that given the increasing number of e-commerce providers and the only partially unlocked online shopping market, it is essential for digital commerce players to understand the factors that influence consumers when deciding whether to shop online and the factors that influence the choice of provider.
“Consumers look for a provider they can trust and that offers hassle-free and effective online shopping at the right price. Effective checkout, low delivery costs and clear and simple return or refund policies are important factors for consumers,” said Deloitte.
“In addition, consumers prefer providers with good customer service, in case they face any challenges or questions throughout their online shopping journey. The push to pure self-service is likely to frustrate certain customers, especially those who are not yet comfortable with online shopping.”
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