SA is on the Cusp of an e-Commerce Revolution

A recent study conducted in South Africa by Ipsos, a global market research company, on behalf of PayPal and FNB, shows a growing interest by South African internet users to shop online. Out of South Africa’s internet users, 22% have said they have made purchases online and 48% expect to do so in the future.

“E-commerce penetration in South Africa is still relatively low by global standards”, says Efi Dahan, Regional Director for Africa and Israel at PayPal. “However, the number of online shoppers is expected to nearly triple in South Africa, making the country a significant e-commerce force in the region”.

The key drivers that would encourage South African online shoppers to shop on line more often are lower product costs (88% of online shoppers say this would make them more likely to shop online), faster delivery (selected by 85% of online shoppers), flexible delivery options (selected by 82% online shoppers) and safer ways to pay (selected by 75% online shoppers).

In fact, 71% of current online shoppers indicated that if they did not have to keep re-entering payments or delivery details, they would be more likely to shop online more often. Meanwhile, one out of two (51%) South African online shoppers indicated that not having to register to a website to make a purchase would make them shop online more often.

When asked about main barriers for online shopping, 67% of non-online shoppers indicate that online security of payments is a reason for not shopping online, while 58% of those who have not shopped online say that concerns about not receiving items they have ordered is a reason they don’t shop online.

A Regional Comparison – South Africa, Kenya and Nigeria

With 70% of South African internet users shopping online or expecting to shop online in future, South Africa, has the second largest number of potential online shoppers, compared to Nigeria (89%) and Kenya (60%).

Perhaps of even more interest is how South African e-commerce sites are popular destinations for shoppers from Nigeria- the research shows 30% of Nigerian cross-border shoppers (online shoppers who have made purchases online from another country) have purchased goods from South Africa in the past 12 months.

Source: SA the Good News