SOUTH African attitudes to online shopping are maturing, with shoppers more prepared to make online buying part of their lifestyles – but this means retailers will have to better gear themselves up to understand the needs of the online consumer.
That’s the word from Paddy Gray, director of PQ Africa’s payment gateway ECnet, who says the “make-or-break” 2000 Christmas holiday shopping season has provided hopeful signs for South Africa’s e-tail sector.
“Based on the downswing in the economy, we had predicted a conservative growth of 100% in Internet retail sales for the period. We are delighted that the actual value of online transactions during the holiday increased by 177%,” said Gray. “In addition, the value per transaction increased 65%, from about R140 last year to R230 this year.
“Shoppers appeared less seasonal in their online buying. They boosted their spending in successful categories like books and CDs, sports and outdoor wear, travel and accommodation, home and kitchenware and flowers and wine.”
A subsidiary of IT giant PQ Africa’s e-commerce division, ECnet represents a large group of online retailers – some of whom did better than others by being more consumer driven in their approach, said Gray.
The growing acceptance of e-commerce in South Africa was reflected by ECnet post-season research showing that 90% of holiday shoppers had an increased awareness of SA shopping sites, while 65% said their confidence in online shopping had improved. What was also clear was that there was early momentum, despite negative news on the economy.
“Many consumers are now more aware of what’s available online, and they’re more confident in online shopping. Importantly, there’s been a swing to buying local products and services,” said Gray. “A key challenge for the coming year is for the retailers to expand and retain customer relationships, and continue to increase online sales to justify investments.”
ECnet’s survey also indicated that customer satisfaction levels are high, with more than 93% of online consumers saying they would be likely or extremely likely to shop online again. About 58% of consumers said their online shopping experience was better than last year.
Trusted e-commerce sites continued to do well, albeit with a slower growth rate than in past years because the industry is coming off a far larger customer base.
“When you’re buying from an online seller that you are comfortable with, chances are that’s where you’ll return to again and again. There is a huge opportunity to win loyalty for the long term,” said Gray.