E-commerce growth in South Africa is reportedly being hampered by Last-mile Logistics. Leon Qwabe, the founder and CEO of Order Kasi, a township-focused delivery service, made this claim on Wednesday at an e-commerce webinar presented by the Insaka eCommerce Academy.
E-commerce Growth in South Africa is Reportedly Being Hampered
Qwabe stated that “there are two massive challenges when it comes to delivering to township areas: insufficient mapping for navigation, and higher crime rates.”
“Working with drivers from the area helps get items delivered faster while having a relationship with the community makes them see you as a solution to their problems, and so they help protect your business from criminals,” Qwabe added.
Community-driven collaborations, however, are assisting in resolving issues. Order Kasi partners with online retailers, ranging in size from small startups to national chains, to facilitate the delivery of their products to communities throughout the nation.
E-commerce Demand in South Africa
The majority of e-commerce demand, according to Order Kasi data, is driven by a desire for apparel and health products, but more may be done to provide accessibility for township inhabitants who are “eager” to have access to a wider range of goods and services.
Qwabe said, “Collection points have helped make deliveries safer and more reliable like Pep does through its mall-based stores but then a customer must still take a taxi to collect their products. Adding warehouses in the townships would make the logistics much easier.”
The township market, however, serves more than just retail customers. Additionally, businesses are looking to e-commerce as a more convenient and affordable option to buy high-quality products for their operations.
The Head of Marketing at Bob Group Discussed Some of the Difficulties
Yaeesh Moosa, the head of marketing at Takelot.com, and Craig Lubbe, the head of marketing at Bob Group, discussed some of the difficulties involved in creating a two-sided marketplace where users of the platform are both sellers and buyers.
According to Moosa, “It is a tricky balance to strike when you are working with customers on both sides. We have focused on customer experience to ensure that buyers enjoy engaging with the site. The sellers then follow because they are looking for those customers you are bringing in.”
Lubbe addressed the benefits that e-commerce platforms offer to retailers trying to grow their online presence, such as ongoing education and support for advertising. However, he cautioned that entrepreneurs should consider both platform fees and their margins before committing to platform services. He said, “Merchants don’t realise that a lot is bundled into e-commerce offerings; they come at a fee but they add value.”
US E-commerce Giant’s Interest in the South African Market
The conversation quickly turned to Amazon.com’s much-awaited entry into the local market. All of the speakers concurred that the US e-commerce giant’s interest in the South African market validates the industry’s expansion and demonstrates its immense potential.
However, until the corporation becomes used to the local market, Amazon’s influence on the local economy in terms of jobs and market share might not be as great as initially projected.
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