How businesses can capitalize on the e-commerce opportunity in South Africa
Various research organizations and publications over the past 12 months have shown rapid growth in South Africa’s e-commerce market. The South African e-commerce market was estimated to be worth R200 Billion annually in March this year1. One of the by-products of our vision to empower businesses in SA for e-commerce to take full advantage of the digital opportunity that exists is the countless engagements we have with various types of businesses. From these engagements we hear first hand the unique journeys, challenges and innovative models that these entrepreneurs have endured and this article aims to share some of these best practices.
Just start
The growth of the e-commerce market in South Africa has been attributed to the increase in mobile internet penetration, increase in social media usage, and a decrease in cost of smartphones. Businesses need to take advantage of this opportunity by developing an online presence and investing in online marketing strategies. Despite what stage your business or product is at, it's never too late to digitize it and maybe it's simpler than you think. Start with clear e-commerce objectives, roll out specific product categories to specific segments of your customer base and find a technology partner that aligns with a phased approach. Too much, too quick can isolate certain customer segments, create operational complexities for your staff and may be too much of an initial financial investment.
No need to preach to the converted
Consumers in South Africa have reached the proverbial tipping point with e-commerce. They’re ready for more and they are here to stay. Covid-19 may have been the nudge to change customer behavior but in our experience we’ve seen that under the right circumstances and depending on the quality of their e-commerce experience customers are quite comfortable with continuing to shop online. In light of this we believe that it's important to build a quality customer experience, whether it's a mobile app or a website the digital experience should be seamless, easy to use and engaging. What businesses need to consider is conveying their brand through the e-commerce platform and finding ways to offer in-app guidance along each customer's journey. The future of brands will be defined increasingly by the quality, depth and relevance of the customer experience.?
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Give your customer choices
Understanding your customer is the key to making your e-commerce investment a success. Your e-commerce app or website must have elements that align specifically to the unique needs of your customer. We have had many discussions with businesses where a templatized- one size fits all approach presented challenges and in some cases didn't work at all. Giving your customer options like, click and collect in addition to delivery, the ability to choose trusted online payment methods and a place to voice their experiences through reviews are some examples of customer choices that drive loyalty2. Furthermore lack of consistency, and poor delivery experiences which include cost of delivery are some of the most common concerns voiced by consumers.
The number of smartphone users in South Africa is expected to reach 25.5 million by the end of 20223, and recent data shows digital banking is growing rapidly?. Businesses that are ready to take advantage of the e-commerce expansion wave in the South African digital world will prosper. To this end we say, Just start!