The South African ecommerce market is booming with many of its biggest retailers competing to dominate online shopping.
According to a survey by Deloitte, approximately 22 million South African consumers shopped online in 2020. This is expected to grow to 32 million by 2024.
“Ongoing concerns about COVID-19 and the convenience of online shopping are key drivers for the future of online shopping,” it stated.
In addition, 64% of the survey respondents said they were not regular online shoppers. This means that online shopping has a lot of room to expand.
The survey also showed that clothing, electronics, footwear, household appliances, and health products are the most popular categories amongst South African online shoppers.
The image below shows the net sales of the top three online stores per category in South Africa.
Consistent with these categories, the top five online stores in South Africa – Takealot, Makro, Builders Warehouse, Woolworths, and Nike – accounted for 43% of the top 100 net sales in 2019.
“On average, South Africa’s top online stores achieved a year-on-year growth of 15% in 2020,” it added.
This growth is partly a result of consumers migrating from in-store shopping to online alternatives. It is fuelled by clearance sales, daily deals and monthly promotions.
As a result, many traditional retailers have improved their online operations to compete with online-only shops like Takealot and Loot.
Online shopping has also become easier. Nowadays, most online stores have easy checkouts, low delivery costs, and straightforward refund policies.
The biggest battleground became price.
Takealot, for example, offers promotions like Daily Deals, App Only Deals, The Gift of Time Sale, and Refresh Your Desk, all of which provide discounts on specific products.
Their clearance sale also provides discounts of up to 50% on a wide variety of products.
Other retailers, such as Brand Hubb, Loot, and Incredible Connection also frequently run promotions to remain competitive.
MyBroadband gathered some of the best tech deals available from stores like Takealot, Brand Hubb, Loot, and Incredible Connection.