The challenges facing online shopping in South Africa

Online shopping has become a worldwide phenomenon due to the increasing availability of broadband and computer literacy. But is South Africa on par with the rest of the world? Not yet, but we will be if we can overcome a few stumbling blocks.

The number-one reason for online shopping in South Africa not being where it could be is undoubtedly access to the internet. Although the number of people who have access to the internet is increasing every year and even every month, we are still not where we should be.

The cost of internet access in South Africa is also significantly higher than in other countries especially compared to those in Europe and the US. We have, however, seen some price slashes recently — especially from Telkom — which means that costs are slowly but surely coming down. This is a positive sign for the future. There is, however, debate regarding whether the fall of Telkom’s monopoly in ADSL line provisions with the introduction of another service provider will have any significant impact on the price of broadband in South Africa.

Another contributing factor to the current state of online shopping is the fact the major players in the retail industry in South Africa do not have an online presence whatsoever. Take for example Hi-Fi Corporation. Its website consists of a list of stores and its latest specials pamphlets. (If you are lucky, as these aren’t always available.) Other players such as Reggies, Clicks, Game, Checkers Hyper, Spar and Builders Warehouse, to name but a few, have no presence to speak of either. Why do they not follow the example set by Pick ‘n Pay? Convenient grocery shopping must be every mother’s dream! Pick ‘n Pay has managed to establish a very popular online store that is used by thousands every month with very few complaints. So, get the major players involved and we will surely see an increase in online shopping in South Africa.

The third factor to be considered is that of delivery in South Africa. The unreliability of courier companies and fluctuating delivery charges are hindering factors in getting products to the customers in a timely and cost-effective manner. This problem goes hand in hand with the fact that most online stores do not actually carry stock, which means consumers wait even longer for their purchases, making shopping online very unattractive. I would rather drive to a store go in and buy what I want and have it immediately than order something online and wait three weeks for the product.

There are many more issues that affect online shopping in South Africa negatively, such as a lack of education regarding the security of shopping on the internet. We do not think twice before giving a waiter in a restaurant our credit card, but hesitate to use it on a secure site on the internet.

So how do we overcome these obstacles and prove to South African consumers that there are real advantages to shopping online? We need to get the major players involved and convince them of the profitability of having an online presence and we need to ensure that those who are connected to the internet have the knowledge to feel safe in shopping online. Surely it is only a matter of time before the costs of internet comes down in South Africa and people flock to the online stores.