By 2025, the value of ecommerce transactions in SA is expected to reach R225bn, as reported.
The market itself is estimated to reach R400bn the same year, facilitated by more than 1 billion transactions annually, pushed by the ‘convenience factor’ as consumers found their fit during the long days of lockdown.
Add to this growing basket the recent announcement that Amazon will be setting up South African headquarters in 2023 – there is no doubt that the industry can expect some dramatic shifts and disruptions to retail markets.
As the growth of ecommerce exploded around the world and into Africa, this type of expansion is inevitable. Amazon has plans to make their mark in new territories that not only include Africa but also South America, and Europe. A move that makes sense, as their year-on-year growth in net sales lost traction from 44% in Q1 in 2021 to 7% in Q1 2022 – the slowest in the company’s history.
Closer to home, BizNews recently reported that South Africa is an excellent choice for Amazon.
It is Africa’s most advanced economy with an already strong local presence with their AWS office in Cape Town and another opening in Johannesburg. That said, the company is set to establish its own marketplace, with local online retailers like Takealot.com, Superbalist and Mr D Food impacted and at risk of losing market share. Brand owners and the sector at large will certainly face challenges when fast tracking their businesses online, as the hot breath of the world’s largest online retailer sets temperatures rising. Fantastic for consumers but a concern for local brands.
Speaking to IOL, CX consultant Julia Ahlfeldt, co-author of the 2022 SA Digital Customer Experience Report, added, “It’s a dog-eat-dog world, which is why local brands must up their ante to guarantee that they can stand-up against or alongside international apps and offer a seamless customer experience.”
Focusing on the next chapter with 2023 in full swing, the following trend observations should be considered as ecommerce strategies continue to evolve (courtesy of http://www.itnewsafrica.com):
The growth of mcommerce
With Statista reporting that some 78.6% of South Africans access the internet with a mobile device – means that well-designed modular mobile-friendly websites and apps with effective secure handling of transactions will continue to enable businesses to modify and grow their features for an enhanced user experience.
AI and web automation
It will be key to maximise efficiency and customer satisfaction as well as take the monotonous and time-intensive tasks away from employees who are then freed up to attend to more important functions.
Progressive web apps
It offers key functionality, allowing businesses to seamlessly synergise updates between their website and mobile apps without affecting information, functionality, and page layout.
Social media advertising
Social media advertising will have trusted influencers making a significant impact on consumer spending habits with GlobalWebIndex reporting that 27% of young people are using social media to find things to buy. A powerful platform for connecting on a more personal level.
Wrapping Up:
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This article partly refers to: https://www.ecommerce.co.za/article.aspx?s=178&a=8887&title=Landscape