Crime driving up e-commerce operating costs

[Daniel Puchert]

Online shopping delivery price pain in South Africa

As South African e-commerce continues to grow, so does the rate of crimes perpetrated in the sector, making it increasingly difficult and expensive for online shops to operate.

This is according to FarEye CEO Kushal Nahata, who told the City Press that the increased need for security drives e-commerce companies' operating costs up.

 

[quovadis]

"South Africa’s delivery prices are 50% to 100% more expensive than the global average"

I'd love to see the data on this.

 

[RudderVator]

"South Africa’s delivery prices are 50% to 100% more expensive than the global average"

I'd love to see the data on this.

But but Load shedding and fuel prices guys?

That was the excuse. Where is the decrease now?

 

[Swa]

I'll believe it. Couriers have been taking us for a piss, R100 just to drop off and pick up a parcel at the branch.

 

[airborne]

"South Africa’s delivery prices are 50% to 100% more expensive than the global average"

I'd love to see the data on this.

Going by the delivery fees I've seen in the US South Africa's courier rates aren't bad at all if anything they are actually pretty decent.

 

[RudderVator]

I'll believe it. Couriers have been taking us for a piss, R100 just to drop off and pick up a parcel at the branch.

That should be home rates. R50 for a locker/pickup point. That should actually be the norm and home delivery the exception.

 

[quovadis]

But but Load shedding and fuel prices guys?

That was the excuse. Where is the decrease now?

Would be nice to know which markets are forming the basis for the average claim as I wouldn't have thought that we're double the average.

 

[elf_lord_ZC5]

Crime is driving the costs up, of everything, not just courier delivery.

 

[Swa]

That should be home rates. R50 for a locker/pickup point. That should actually be the norm and home delivery the exception.

Well that is what Postnet charges. Delivery is over R200 and then they charge extra if there's a gate on Google Maps, as if that makes a difference. I don't want to know what they charge for pickup as well.

 

[quovadis]

Well that is what Postnet charges. Delivery is over R200 and then they charge extra if there's a gate on Google Maps, as if that makes a difference. I don't want to know what they charge for pickup as well.

What were you sending was it time-sensitive or insured?

 

[Bliksis]

Blah blah any excuse to justify high prices

 

[Swa]

What were you sending was it time-sensitive or insured?

Just normal documents. She asked us if we knew if it was a gated complex and then checked on Google for something that looks like a gated post. Not only that it shouldn't matter in the first place but it's also a very unprofessional way to make a determination in such a manner. I'd rather call one of the standard couriers next time.

 

[quovadis]

Just normal documents. She asked us if we knew if it was a gated complex and then checked on Google for something that looks like a gated post. Not only that it shouldn't matter in the first place but it's also a very unprofessional way to make a determination in such a manner. I'd rather call one of the standard couriers next time.

I use Aramex's store to door a lot. You buy the sleeves and do the waybill online and they have drop off boxes at almost every Caltex FreshStops, PicknPay, Checkers & ShopRite etc.

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It's R99 anywhere in SA and it's a 24-72hr service depending on destination if you get it in the box by the 3pm afternoon cut-off.

 

[Johnatan56]

"South Africa’s delivery prices are 50% to 100% more expensive than the global average"

I'd love to see the data on this.

Would also like to see this averaged based on distance between stops.
South Africa is similar to US with suburbia, but compared to Europe and probably a lot of Asia, most couriers are going to have quite a distance between clients.

My building is a norm for Vienna, 4-6 floors and multiple apartments per floor, and a majority of buildings in the city are similar. This means my postman when delivering my package often delivers to a neighbor a floor up that's 20m from my door, and then next person, etc., the cost of delivering to my building is usually 5+ people in one go, takes like 20-30s per person, so way cheaper. Amazon delivering via map, can see that usually he's delivering at most a hundred meters from me most of the time.

Compare this to most of South Africa where for a delivery to me, the chance of someone in my road getting a courier delivery is pretty low, he's going to have to get into his car and drive to the next person, so minutes between person at least. Of course there are deliveries to work, those are probably where couriers make most of their money.

 

[Swa]

Would also like to see this averaged based on distance between stops.
South Africa is similar to US with suburbia, but compared to Europe and probably a lot of Asia, most couriers are going to have quite a distance between clients.

My building is a norm for Vienna, 4-6 floors and multiple apartments per floor, and a majority of buildings in the city are similar. This means my postman when delivering my package often delivers to a neighbor a floor up that's 20m from my door, and then next person, etc., the cost of delivering to my building is usually 5+ people in one go, takes like 20-30s per person, so way cheaper. Amazon delivering via map, can see that usually he's delivering at most a hundred meters from me most of the time.

Compare this to most of South Africa where for a delivery to me, the chance of someone in my road getting a courier delivery is pretty low, he's going to have to get into his car and drive to the next person, so minutes between person at least. Of course there are deliveries to work, those are probably where couriers make most of their money.

Many couriers in SA also charge extra for outlying areas.

 

[Johnatan56]

Many couriers in SA also charge extra for outlying areas.

Yeah, but that's proper outlying, cities in South Africa are generally very far from compact. I'm talking about just the normal suburbia.

 

[Swa]

Yeah, but that's proper outlying, cities in South Africa are generally very far from compact. I'm talking about just the normal suburbia.

If we're going to take average distance into account we have to take those into account as well. Have had people order from Takealot to outlying areas and then it's not just one order they carry so I think the couriers charging extra for that also make a pretty penny by consolidating orders.