Online retail breaches 1% of total sales.
This represents R9bn revenue, 20% year
on year growth. . . and is more
significant that you think.
A recent report by World Wide Worx indicated that online retail in South Africa is expected to grow by 20% in 2016, slightly down from the 26% saw in 2015 but still significant in the greater scheme of things. We can expect sharp increases over the coming years as cheap smartphones flood the market, rapidly increasing the rate
with which customers connect with companies online.
Success requires more than Processing and Fulfillment.
“Our recent experience at the eCommerce Africa Confex in Cape Town was eye opening in several instances,” says
Nic van den Bergh, Managing Director at NMP (SA).
“While there was significant interest in processing and fulfillment services (and rightly so) it was interesting to note that we were the only Digital agency in attendance – a clear indication that the shoppers’ ‘path to purchase’, e.g. how companies can influence their journey from prospect to client, is maybe not as key a focus it should be when considering the eCommerce ecosystem. This is interesting as the operational elements of a successful online business are really quite meaningless if the company is not able to attract the right kind of clients to its offers in the first place.”
SA online retail sales to double in 5 years
According to Arthur Goldstuck there is an underestimation of South Africa’s
healthy online retail growth rate.
“Currently our e-commerce is relatively conventional, and has (in general) not seen the level of innovation brought to bear on most product categories in major Western markets,” says Goldstuck. “Along with limited activity in other areas, this indicates there is tremendous potential in this market for new business models
and even underexposed product categories.”
Evolve your eCommerce strategy with NMP
“Driving a successful online business requires data, analysis, strategic expertise and integrated services,” says van den Bergh. “Our boom is still coming – and that’s really exciting news for business owners looking to expand their online presence.”