SA's largest consumer-to-consumer online auction site and marketplace, bidorbuy, aims to expand its services north of the border.
The company was created in 1999 and has 450 000 registered users. It moves about R30 million of goods monthly through the site. It has about 370 000 items listed for sale at any one moment.
MD Andy Higgins says the site now wants to move into Africa, and a soft launch in Kenya is targeted for June.
He explains that the continent is the “last frontier”, but lacks the serious competition that is prevalent in developed economies. “We're not looking at world domination, but hopefully African domination,” says Higgins.
Bidorbuy's major focus in the future would be to move onto a mobile platform, as Internet access via cellphone is a major growth driver in Africa. Higgins says mobile is a key connectivity tool in Africa.
Opening doors
The company's recent decision to offer PayPal as a payment channel on its site is important in that it is expected to facilitate trade in Africa. Higgins says bidorbuy does not have a special relationship with PayPal, but has signed up like a normal vendor.
Last month, First National Bank (FNB) announced it was launching PayPal in SA. Initially, the arrangement is limited to the bank's account holders, but it has been hailed as a step forward in unlocking SA's economy.
Higgins says, however: “All PayPal transactions are done in American dollars... South Africans can't use PayPal to trade in rands. That is why PayPal probably will not be used widely in local transactions.”
FNB customers can, however, withdraw the money in rands after linking their bank account to a PayPal account. About 98% of all transactions concluded on bidorbuy are done within national boundaries.
“For all its specifically South African limitations, we expect that the introduction of PayPal will be welcomed by our local sellers with international ambitions, as well as by our international sellers. Hopefully, this will lead to an increase in trading across national borders”, says Higgins.
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