Research done by McKinsey and Company reveals that SMEs make up 98% of businesses in South Africa and employ between 50-60% of the country’s workforce.
Now almost two years into a pandemic that swept the country into an economic crisis, we’re witnessing a growth in e-commerce.
But e-commerce is not new to South Africans.
Major e-commerce players like Takealot and Superbalist, who were doing well pre-pandemic, experienced a growth spike in sales as more consumers took the online shopping route.
In 2020, South Africa saw a 66% growth in e-commerce. And as it stands, a study done by Deloitte found that more than 70% of South Africans are shopping online.
As much as the marked increase of e-commerce was induced by limitations that stemmed from lockdown restrictions, that isn’t the only reason why e-commerce is projected to grow in an upward trajectory in the coming years.
The access to advanced digital technology, contactless payment methods and high-speed internet has South African consumers driving the shift of e-commerce even further.
And here’s why 2022 is the right time to take your business online:
Mobile penetration amongst South African consumers is higher than ever.
The integration of wallets, bank apps and shopping apps is influencing the acceleration of e-commerce in on South Africa.
From a survey of 1 000 South African consumers, Mastercard concluded that online shopping will continue to grow as 71% of respondents say they will still shop online post-pandemic.
South African consumers put convenience at the forefront
A March 2020 McKinsey Consumer Pulse Survey discovered that more than 70% of South Africans are looking to cut back on transport and travel-related costs.
This reduced need to visit a physical store was also identified in research done by Deloitte. They found that 26% of consumers said they do online shopping is because it is more convenient.
South African consumers want a personalised shopping experience
As South Africans become more comfortable with the concept of online shopping, their appetites are for e-commerce solutions are growing.
E-commerce stores give the consumers what they want in the palm of their hand and can reach a wider audience, 24/7.
Credibility is what South African consumers want
Smart Insights unveiled that 81% of consumers search for a product or service to buy online. In a world where online availability is quickly becoming a cost of entry, an online store presence immediately makes a business more credible and builds brand loyalty.
Durban-based fintech, iKhokha, has been paying close attention to these trends, investing in ample research, and has spotted development potential on the horizon.
With the recently launched safe, easy, and affordable iKhokha Payment Gateway, South African small business owners can start, run and grow their business online.
For more information on iKhokha’s Payment Gateway, please visit www.ikhokha.com/pay-online.