A 2012 World Wide Worx (WWW) report found that the growth of e-commerce is accelerating, with the Internet economy set to contribute 25% more to the local economy in 2016 than it did in 2011.
E-commerce is gaining traction locally, with South Africans becoming more accustomed to buying online, the report notes. "It takes up to five years before new Internet users gain the confidence and experience in the medium to become active participants in the Internet economy," says the report. "With the number of Internet users having accelerated from 2008, the number of experienced users will begin accelerating in 2013."
Cape-based e-commerce developer, Realmdigital, has seen this trend in action, says CEO Wesley Lynch. "South Africans are becoming far more comfortable buying online, with value offerings like Groupon's group buying playing a crucial role in making it more attractive. The natural appeal of e-commerce is the accessibility it gives products, something that store-only retailers cannot offer. The convenience of buying from anywhere in the world and having a physical product delivered to your doorstep is hard to beat."
An increase in digital entertainment has further boosted the trend, he adds. "The instant gratification of a digital download is even more of an incentive to buy online."
Progressively cheaper Internet, a partnership with Realmdigital, and mobile devices with Internet access have seen academic book retailer, Van Schaik, witness strong uptake in its online retailing services, as well as a net increase in sales, says Melvin Kaabwe, digital manager at Van Schaik. "We view mobile commerce as key to accessing this market, and a boon for our serious entry into e-commerce as an academic resource. Making the site as accessible as possible to mobile users was one of the formative briefs for the site."
The increase in sales achieved by online retail can provide a significant return on the investment of establishing the online presence and the cost of distribution, says Lynch. "Online retail is now pretty competitive, with Kalahari, Loot, Wantitall and others all making their marks - and there can be no clearer argument for getting online now."
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