How Effective Is E-Commerce In South Africa?
What Is E-Commerce?
The action of electronically purchasing or reselling goods using online services via the Internet is known as e-commerce (or electronic commerce). Mobile commerce, electronic funds transfers, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data gathering systems are just a few of the technologies that are used in e-commerce. The greatest sector of the electronics industry, e-commerce is fueled by the technological developments of the semiconductor sector.
Types Of E-Commerce in South Africa
There are two groups of contemporary electronic commerce. Based on the categories of items sold, the first category is business (involves everything from ordering “digital” content for immediate online consumption, to ordering conventional goods and services, to “meta” services to facilitate other types of electronic commerce). Based on the participant’s nature, the second category (B2B, B2C, C2B and C2C). Large enterprises and financial organizations use the internet to exchange financial data to support domestic and international trade on an institutional level. For electronic commerce, data security and integrity are critical concerns. In addition to conventional e-commerce, the names “m-Commerce” (mobile commerce) and “t-Commerce” (starting in 2013) have also been used.
How Effective Is E-Commerce In South Africa?
eCommerce in South Africa is expanding more quickly than ever before.eCommerce in South Africa increased by 66% in 2020 compared to the previous year. The limits imposed on conventional retail establishments, which resulted in a 30% decrease in in-store shopping, were the main factor behind this growth. While various levels of lockdown damaged several economic sectors in 2020, internet retailers saw a surge in sales as South Africans opted for home delivery over shopping at malls and supermarkets. The market share of internet retail in South Africa increased to 2.8% in 2020, Stats SA reports, which is a twofold increase from the previous year.
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How Did COVID-19 Affect E-Commerce In South Africa?
Although COVID-19 played a part, this rise is predicted to continue. Similar to how the pandemic altered long-term research, more South Africans were familiar with internet buying, enjoyed its convenience, and might do it more in the future. More than 70% of South Africans shop online at least once per month, according to a Deloitte report. Most people listed convenience, COVID-19, and time savings as their top three motivations for doing more buying online. The most popular categories among South African internet consumers are apparel, electronics, footwear, home appliances, and health products, which aligns with global online buying preferences.
The Function Of The Mobile Phone In E-Commerce
The fact that people are becoming more “digitally savvy” and technology, especially the mobile phone, is steadily encroaching on their lives is another reason that has fueled the expansion of eCommerce in South Africa. Most people who use the internet mostly use their mobile phones. Due to the availability of alternatives to cash as a form of payment, banks, card issuers, shops, and communications corporations, cell phones have largely supplanted wallets.
