South Africa’s ecommerce environment is awash with activity. Mr Price Group bought Yuppiechef, Imperial acquired Parcelninja, JD Group launched Everyshop, and Ackermans launched a new tech store.
This activity is partly a result of the growth in ecommerce over the last year. The COVID-19 pandemic and lockdown were a shot in the arm for online commerce in South Africa.
Online shopping volume doubled for many retailers last year as South Africans avoided malls and physical shops.
It is estimated that online shopping increased its retail market share in South Africa from between 1% and 2% in 2019 to between 2% and 4% by the end of 2020.
Traditional retailers improved their online operations to ensure they got a bigger slice of the growing ecommerce pie.
Massmart, which owns Makro, Game, and Builders, grew its online sales by 58.6% to R1.1 billion in Gross Merchandise Value (GMV).
Builders grew its online sales by 111%, while Game and Makro also saw strong growth of 77% and 40%, respectively.
The biggest player, however, is still Takealot. With an exceptional logistics network, a wide range of products, and excellent support, it is difficult to compete against.
This does not mean it will not face increased competition in the local ecommerce market.
Everyshop marketing executive Stef Michael said they are planning to be the best online shop in South Africa.
With access to over 500 leading international and local brands in over 160 categories, they have no problem with the range of products they can sell.
Their fulfilment is supported by a nationwide distribution network which includes two dedicated fulfilment centres and large-scale distribution centres, which again puts them on par with other players.
Good news for consumers is that Everyshop will have weekly promotions with discounts on popular products to ensure they are competitive.
With this increased competition South Africans will enjoy lower prices and improved service levels – exactly what is needed to grow online shopping to new levels in the country.
A good example is Loot’s Orange Autumn Clearance Sale which offers up to 75% off merchandise across various categories.
Loot CEO Greg Le Roux said while many sale items are end of runs, there are also bestsellers which were kept in reserve for this promotion as a “special treat”.
Here are some of the best tech deals which are available from online shops this week, including from Loot’s financial year end clearance sale.