Massive surge in online shopping in South Africa - But not at Black Friday levels

Hanno Labuschagne

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Massive surge in online shopping in South Africa - But not at Black Friday levels

South African online stores have seen a significant increase in sales following the relaxation of lockdown regulations to allow the unrestricted operation of ecommerce.

Following the reopening of local ecommerce, many South African online stores said that they had seen an uptick in sales, as well as big spikes in demand for certain products.

These products included winter bedding, cookware, electronics, exercise equipment, webcams, and headsets.
 
Yup well for the first 5 weeks of the lockdown we couldn't get any of that??
 
:cautious: the "But not as Black Friday levels" part of the headline was just meh unnecessary tbh
 
Not surprisingly, service levels haven't increased much. Was a wakeup call to see how retailers in South Africa just have never bothered to gear themselves up for online shopping and timely delivery, especially the ones with the resources to do so.

I get very frustrated with this, every so often we see articles about how bad retail is doing in SA and at the moment, however these companies simply cannot identify and satisfy a very clear consumer need. It's as if they don't want to make money.

With the exception of Takealot and Clicks, all the other attempts at online/digital shopping was one big Fail over the past two months. From having to Whatsapp my order to Spar, email it to PnP, Woolies being nowhere, a plethora of apps not delivering in my area to the other ones taking 10 days to respond to queries and refunding money because they simply didn't deliver and so it goes on. Really wasn't cool nor helpful.
 
Not surprisingly, service levels haven't increased much. Was a wakeup call to see how retailers in South Africa just have never bothered to gear themselves up for online shopping and timely delivery, especially the ones with the resources to do so.

I get very frustrated with this, every so often we see articles about how bad retail is doing in SA and at the moment, however these companies simply cannot identify and satisfy a very clear consumer need. It's as if they don't want to make money.

With the exception of Takealot and Clicks, all the other attempts at online/digital shopping was one big Fail over the past two months. From having to Whatsapp my order to Spar, email it to PnP, Woolies being nowhere, a plethora of apps not delivering in my area to the other ones taking 10 days to respond to queries and refunding money because they simply didn't deliver and so it goes on. Really wasn't cool nor helpful.
It's going to take a while for businesses to gear up to become logistically efficient. It's a mammoth task, some businesses are perfect for online delivery services while others for certain reasons are not.

I'm a small business owner, most of my products are low ticket items and for the most part need to be viewed first hand for the customer to decide.
Let's say for instance we could have 200 walk-in clients on a Saturday alone that come from surrounding suburbs and further afield. If you had to reverse those walk-in clients and extrapolate that out to 200 deliveries in a day, it's just not going to happen. The cost of the item and the sheer mammoth task of doing 200 deliveries in one day or two. On a good day we could do maybe 10 deliveries to our outlying suburbs and that is just one vehicle. It would mean having 10+ delivery vehicles running all day, the logistics of this would be a nightmare.
Our products are seasonal like fruit and vegetables, people want to see what they are buying.
We do offer delivery at a fee but it is usually for items that clients can't fit into their vehicle or too much to load themselves. Some elderly people from the vulnerable group have sought delivery for which we have helped out.

Online business can work for certain businesses but practically speaking there are others that won't.
While I understood the need to have things delivered during lockdown, but this so-called demand is possibly a flavour of the month story as people were sitting at home but at Level 3 we will see a return to more or less where we were before lockdown started.

That being said, I agree the trend is more towards online shopping.
From having a motherboard delivered from Takealot to picking your apples and pears at Food Lovers, two different animals.
 
It's going to take a while for businesses to gear up to become logistically efficient. It's a mammoth task, some businesses are perfect for online delivery services while others for certain reasons are not.

I'm a small business owner, most of my products are low ticket items and for the most part need to be viewed first hand for the customer to decide.
Let's say for instance we could have 200 walk-in clients on a Saturday alone that come from surrounding suburbs and further afield. If you had to reverse those walk-in clients and extrapolate that out to 200 deliveries in a day, it's just not going to happen. The cost of the item and the sheer mammoth task of doing 200 deliveries in one day or two. On a good day we could do maybe 10 deliveries to our outlying suburbs and that is just one vehicle. It would mean having 10+ delivery vehicles running all day, the logistics of this would be a nightmare.
Our products are seasonal like fruit and vegetables, people want to see what they are buying.
We do offer delivery at a fee but it is usually for items that clients can't fit into their vehicle or too much to load themselves. Some elderly people from the vulnerable group have sought delivery for which we have helped out.

Online business can work for certain businesses but practically speaking there are others that won't.
While I understood the need to have things delivered during lockdown, but this so-called demand is possibly a flavour of the month story as people were sitting at home but at Level 3 we will see a return to more or less where we were before lockdown started.

That being said, I agree the trend is more towards online shopping.
From having a motherboard delivered from Takealot to picking your apples and pears at Food Lovers, two different animals.

Well, small businesses I completely understand, my jab was more aimed towards the bigger retailers... ironically, a good example is Black Friday... every year the same story and also every year the event that makes customers lose more and more faith in the retailers that have the resources to make this work, but just cannot quite get there.

This was yet another golden opportunity missed for them, just like every year's "Black Friday", because somehow, after going through it time after time after time after time, they have still not managed to get their online stores/deliveries in order for high demands.
 
Well, small businesses I completely understand, my jab was more aimed towards the bigger retailers... ironically, a good example is Black Friday... every year the same story and also every year the event that makes customers lose more and more faith in the retailers that have the resources to make this work, but just cannot quite get there.

This was yet another golden opportunity missed for them, just like every year's "Black Friday", because somehow, after going through it time after time after time after time, they have still not managed to get their online stores/deliveries in order for high demands.
Would have been easy to deliver under Level 5 with no traffic on the roads, that was a lost opportunity there.

I hear your point about big business, but even then I think it is just the same as any other business just scaled up.
We may get 200 clients for the day, they would get 2000 or 20000.
I still think it's going to be item specific going forward in the short term.
If you want a Computer Motherboard delivered within a week, that will work, if you want milk and bread, go to your nearest shop.
Maybe not the best examples but that is the position at the moment.
 
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