South Africa continues to see their ecommerce market grow each year. The market has grown by over 20% each year since 2000, but they are still lagging behind many other international ecommerce markets. The increasing rate of internet penetration and mobile use are driving factors for the rise in ecommerce.
An article from The Media Online lists some of the top ecommerce companies in South Africa in terms of market share.
- Takealot: 12.5% market share.
- Apple App Store: 5.5% market share.
- Pick n Pay: 5.1% market share.
- Woolworths: 2.7% market share.
- Sportsman’s Warehouse: 2.2% market share.
The article also predicts a few key trends for 2018.
- People will purchase data, instead of airtime, so they can shop online.
- Mobile will continue to be a major driver of ecommerce growth.
- Retailers will offer a range of services in order to stand out in the crowded market.
There are still obstacles that need to be addressed in order to compete with international ecommerce markets. Cybersecurity remains a major concern for online shoppers who hesitate to share their banking information. Some online retailers are combatting this by offering more payment options that don’t risk customers’ security. Another challenge for South Africa is guaranteeing there are enough servers to handle traffic volumes.
South Africa’s advancements in technology and growing consumer options will continue to boost ecommerce growth.
To read more, please see: Online shopping growing in popularity in SA, but lags global pace.