Gadget prices in SA: online versus physical shops

Online shopping is growing in popularity in South Africa, but it still only makes up about 1.3% of the total retail market in the country.

The lack of scale, argues Takealot, means that South African online retailers cannot compete successfully against the local brick and mortar shops and foreign companies such as Amazon and Alibaba.

To overcome the challenge of scale, Takealot is planning to join forces with Kalahari to “create a platform of scale”.

Through this scale, and becoming more competitive, Takealot wants to move the local market closer to developed markets like the US where online retail accounts for as much as 14% of total retail of consumer goods.

Prices compared

While online retailers provide South Africans with convenience, it is not always cheaper to purchase products over the Internet.

MyBroadband selected a few popular gadgets and compared the prices of these items on Takealot, Kalahari, and major “brick and mortar” retailers.

Online shopping versus “brick and mortar” prices
Product Takealot Kalahari Makro Incredible Connection
Samsung Galaxy Tab 4 7.0 R3,298 R3,299 R3,599 R4,700
Hisense 40″ 3D LED TV R4,889 R4,899 R4,799 R4,999
DStv Explora R1,795 R1,790 R1,899
Seagate 2.5″ External Hard Drive – 1TB R1,025 R799 R1,149 R1,500
Microsoft Office 365 R729 R734 R699 R800

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Gadget prices in SA: online versus physical shops