According to the findings of a recently published analysis, South Africa is among the regional leaders in Internet and mobile phone adoption, making it one of the major B2C electronic commerce markets in Africa.
Even though only approximately half of South Africa's population has access to the Internet and only about a third of those who have Internet made purchases online in 2015, the demand for services related to online shopping is growing.
The percentage of people who use the internet and have the intention of making purchases online is approximately twice as large as the percentage of people who already make purchases online.
Multiple sources agree that by the year 2016, business-to-consumer (B2C) e-commerce sales in South Africa will rise at a rate in the double digits and surpass the threshold of one percent of the country's total retail sales.
Faster and more flexible delivery are cited among the top five factors that could help drive Internet retailing in South Africa still further. The lack of trust in delivery is reflected in the ranking of the product categories most purchased by online shoppers in South Africa in 2015, as cited in this report. This ranking is topped by digital and small item purchases, such as ticket reservations and books. Payment safety is another online shoppers' concern, as safer payment is desired by two-thirds of them.
Some of South Africa's prominent E-Commerce companies include online mass merchant and marketplace Takealot.com, which joined forces with another online retailer, Kalahari.com in 2015. Specialist online retailers, such as consumer electronics merchant Makro and clothing merchant Zando are also among the leaders. Moreover, foreign E-Commerce platforms such as Amazon.com, Ebay.com and Alibaba.com are among popular destinations for South Africa's Internet users, indicating further potential for the cross-border online shopping trend.
Key Questions Answered
- What is the market size of B2C E-Commerce in South Africa and what growth is expected in the next five years?
- Which are the main drivers and challenges to online retail development in South Africa?
- Which important trends have emerged in South Africa's Internet retailing?
- What do online shoppers in South Africa buy and how do their pay for their purchases?
- Who are the E-Commerce market leaders in this country?
Key Topics Covered:
1. Management Summary
2. Overview and International Comparisons
4. Sales and Shares
5. Users and Shoppers
- Goldman Sachs
- Silvertree Internet Holdings