Online buying slow to take off in SA

IN South Africa‚ buying food and beverages as well as clothes online continues to lag behind global norms‚ an EY survey has revealed.

Though online activity is rising in South Africa‚ markedly through mobile platforms‚ complex logistics have seen few major retailers set up e-commerce facilities and the effect on the bottom line is yet to be seen.

EY retail and consumer products sector leader Derek Engelbrecht said the cost of a single delivery could be substantial compared to the value of the order‚ and substitution for unavailable items‚ particularly where a consumer had a strong affinity for a brand‚ was not handled properly.

Furthermore‚ the food and beverage category continues to suffer from logistical problems and the inability to ensure that the product was delivered to the front door.

In a retail market worth more than R500-billion‚ online transactions account for less than 1% in South Africa. Grocery retailers have shied away from pushing e-commerce hard as shoppers tend to make fewer impulse purchases online.

When it comes to clothing‚ the cost and effort involved when an item is deemed unsuitable adds to the lag in local sales.

"Anecdotal evidence suggests that sizes across brands in store or across stores are not consistent‚ and therefore add to buyer anxiety‚" Engelbrecht said.

Also‚ consumers wanted to touch and see clothing products.

An independent analyst‚ Roger Tejwani, said online shopping over the next five to six years would certainly take off in South Africa.

"If you look at the very high mobile-phone penetration in South Africa‚ it's one of the highest globally and the fact that South Africans are quite savvy when it comes to tech‚ they are already doing a lot online in terms of browsing and price comparability‚" he said. – BDpro