The South African ecommerce market is developing at a rapid rate, with revenue projected to reach R56 billion ($4 billion) in 2021.
According to a Nielsen report on COVID-19’s effect on fast-moving consumer goods (FMCG) and retail “68% of South African consumers reduced their frequency of visiting physical supermarkets, while 37% increased their online shopping activity”.
As a result of changing customer behaviour and a steady shift to more online transactions, user penetration is expected to hit 41% in 2021 and reach 53% by 2025.
Rand Merchant Bank (RMB), in turn, predicts that the volume of ecommerce transactions in South Africa will rise 150% to R225 billion by 2025.
During an interview, Executive Head of Merchant Services Growth at RMB and FNB, Aluwani Thenga said FNB had seen more and more of its customers going online, with a steep increase over the past six months.
Since the pandemic started, more consumers expect businesses to have the option of paying for products online and offering nationwide delivery.
In response to this demand, many businesses have improved their online operations to compete with online-only shops.
It is, however, not only South African businesses which serve local consumers through ecommerce services.
Many South Africans purchase products from international shops like Amazon and Wish.
International online shopping has become so prevalent that online retailer Wish partnered with the South African Post Office to improve its logistics capabilities and customer experience for South African consumers.
The company will collaborate directly with the Post Office to establish a more reliable and productive experience for its customers.
This partnership aims to strengthen Wish’s foothold in the South African ecommerce market, going head-to-head with industry giants like Takealot.
Although Wish is known for its low product and shipment prices, local competitors continue to improve their offerings with frequent promotions.
With daily deals, App Only Deals and a 50% clearance sale, Takealot still reigns as South Africa’s leading online store.
MyBroadband has compiled a list of the best tech deals from stores like Takealot, Brand Hubb, Loot, and Incredible Connection.