With the increased availability of broadband access, more affordable data costs offered by mobile operators and the consistent development of mobile devices, online shopping is gaining great traction in Sub-Saharan Africa, according to an industry commentator.
Fatima Sullivan, head of retail at DHL Express Sub-Saharan Africa, says consumers are increasingly choosing to purchase gifts online from both local and foreign retailers due to the ability to select from a wide range of products at competitive prices, without being limited by geographical locations or time constraints.
"With improved infrastructure in terms of ICT, online safety and security, more people are choosing to make use of online shopping over traditional brick-and-mortar outlets due to the variety of products available to them at just a click of a button," she says.
A MasterCard Worldwide Online Shopping Survey showed significant increase in online shopping among South Africans in 2013, with 58% of respondents saying they use the Internet for online shopping. This is an increase from the 44% who did online shopping in 2009, and 53% from 2010.
Sullivan points to the successes of local e-commerce start-ups like Zando, in SA, and Jumia, in Nigeria, both part of Africa Internet Holdings. Jumia, which only launched last year, has already expanded into six markets, and Zando is planning expansion in the near future, she says.
Sullivan says while online shopping has many benefits, not many South African consumers are aware of the regulations involved with importing products purchased online from international retailers, which could lead to consumers incurring additional expenses.
"As an example, all shipments transported across international borders must be cleared through customs, where, depending on the type of goods being shipped, they may also be subject to certain other restrictions and regulations," she explains. "There are goods, such as clothing, that attract high rates of duty and are subject to interventions by customs where the price, contents and country of manufacture are often interrogated to mitigate a wide range of risks."
She adds that confirming any possible restrictions attached to particular goods is vital and should be the first action taken by consumers before making a purchase online to avoid having goods detained by customs.
Smart purchase
When purchasing goods online from international retailers, Sullivan says it is important to bear a number of aspects in mind, such as import taxes and duty. "Usually taxes and import duty costs are calculated specifically on the value of the imported goods. Consumers should be aware that certain products, such as footwear and wines, are calculated part in value and/or in quantity, and may be subject to permit requirements based on quantity, while others, such as clothing, jewellery, perfumes and mobile devices, may only be calculated on the value of the product."
She points out that various levels of customs clearance might be necessary, depending on the item. This could delay the shipment due to processing or physical inspection, so it's important to order goods well in advance.
Sullivan suggests using a dependable courier service that has a well-established working relationship with customs and local authorities, and being aware of the different shipment costs.
"It is advisable for consumers to speak to the online retailer or a local expert or service provider should they be unsure about any regulations that may apply to their purchase," she says. "With the festive season boom expected, you don't want to be in for an unexpected surprise in terms of duties and taxes, or that your Christmas present arrives on 28 December."
Share