Three South African e-commerce pioneers talk about how the pandemic has made a difference for the better
The Covid-19 pandemic and national closure have had a devastating effect on many, but all, South African industries and companies. On the contrary, a secure sector has experienced impressive growth.
In a world where leaving home can be fatal, buying groceries online has the new retail therapy. And for some of the country’s leading online companies, this has led to a sales boom.
“Without saying the obvious, more and more people are buying groceries online; we have noticed a significant increase in the number of transactions on our site,” says Craig Lubbe, CEO of bidorbuy, one of South Africa’s leading online grocery stores. and bidding markets. SkinMiles, an online store established for skin care, recorded a 40% increase in sales for the year ended In February 2020 compared to last year; is now moving towards a rotation of 60 to 100 percent higher. And DPO South Africa, the country’s largest payment provider, which increased its capacity by 700% to meet customers’ wishes as the economy opened in point 3, recorded peak transactions on May 30 in 4 times its minute of increased black Friday activity. Year. Its monthly volumes for the rest of the year are expected to be approximately 40% higher than in 2019.
Essential parts such as cleaning products, stationery, air time and hygiene products were sold well in bidorbuy, as were health-related products, adding mask and thermometers. And as other people spent more time at home, the demand for quieter categories has also increased in a different way, adding entertainment pieces like Spotify game wallets and coupons, sports gadgets like indoor motorcycle coaches and categories for home and life that come with small and giant appliances. “We’ve noticed great adjustments to their overall performance,” Lubbe says. “Home and life, toys and recreation and games doubled overnight, and music and instruments, as well as craftsmanship, have also grown incredibly.”
Brendon Williamson, sales manager at DPO South Africa, agrees. “People who spent more time at home in grades five and four meant they had more time to plan and think about what they would like to buy, especially when it came to space and garden innovations. As soon as they had access to the products, they seized the opportunity. Anticipating the repressed demand point, DPO temporarily scaled its systems to cope with an accumulation in transaction volumes, and on Saturday, May 30, two days before the start of Level 3 on June 1, the existing payment service provider experienced twice the amount of pre-average blocking (measured in transactions consistent with minutes) Alcohol Array , food and games are the main drivers.
Dr. Alek Nikolic, Director of SkinMiles, believes there are 4 reasons why those adjustments relate to your business. First and for example, consumers are involved in buying groceries in the store and feel safer when they shop online. Second, all salons were closed at levels five and 4, requiring a full transition to online grocery shopping. Third, consumers had more free time, so their online presence increased. Finally, consumers spent more time on social media, expanding their exposure to advertising and, in particular, to ads that encouraged them to take care of their skin and their beauty needs.
The strict online era has created a new category of buyers. Without the option to physically buy groceries from physical malls, others still had no option to browse online. Lubbe points out that this is the catalyst for other people who were not online shoppers before adopting this specific virtual learning curve. Registered bidorbuy users have increased to more than two million, with continuous expansion in this area. And, reflecting the largest variety of products purchased online, Lubbe says it saw a strong double-digit expansion in the number of page perspectives viewed through buyers in May and June this year compared to 2019.
Nikolic believes this is a permanent replacement because “new online consumers have learned how convenient and safe it is.” In addition, courier companies have perfected the art of next-day delivery at primary centres in South Africa, making it less difficult to deliver products to consumers very quickly.
This increase in diversity through courier corporations had another positive domino effect, as bidorbuy noticed a noticeable improvement in the number of traders promoting on the site. “In the early stages of closing, there was a drop in the number of traders because they were unable to ship,” lubbe explains. “But now that couriers can re-deliver, those traders are back and trading on our site, and new merchants who were once classic physical retail outlets have now switched to the Internet: our offer and charm for more buyers will only grow and improve.”
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