SHIPPING may not be the most attractive aspect of e-commerce, but it’s certainly among the most important in a sector that FNB Merchant Services anticipates will reach R400-billion in South Africa by 2025.
Numerous studies have shown that effective delivery is a key influencer in a shopper’s decision to make an online purchase or not. And as much as delivery strategies have improved, some consumers remain sceptical that their goods will reach them on time, or even at all.
The onus is now on small and medium enterprises (SMEs) to remove these doubts if they hope to grow their businesses.
“For merchants, shipping is likely to be one of the major factors they need to consider, both in terms of operations and costs,” says Anita Erasmus, Head of Business for Bob Group, an ecommerce ecosystem aimed at making ecommerce reliable, simple and trustworthy.
The group is an amalgamation between online auction and marketplace brand bidorbuy and logistics firm, uAfrica.
Erasmus says while courier companies are good at collecting parcels and getting them delivered, “there is so much more to it” when it comes to ecommerce.
“Setting up a successful ecommerce store is a multifaceted undertaking, requiring not only creating the store but also functions like payments, shipping and marketing. Bob Group’s aim is to assist merchants in areas where we believe we can make this process easier.
“Initially, our focus is on the marketplace, payments and shipping but we have exciting new developments planned for 2023.”
Bob Group through uAfrica specialises in automated technology that facilitates this process, many aspects of which were previously done manually. The system allows SMEs to get competitive quotes and ship from multiple couriers while also enabling them to generate electronic shipping labels with one click to request collections from multiple couriers. Features like packing slips, bulk fulfilment and inventory management are also available to streamline the order management process.
Automated tracking updates also ensure customers are always up to date on the status of their parcels.
“Ultimately, shipping success comes down to innovative technology and tight integration between your online store and the courier companies you use,” Erasmus says.
Such technology should be especially useful to South Africa’s township and rural economies.
The Covid-19 pandemic has led to a significant increase in the variety of products being offered online, with major growth in the clothing, food and cosmetics sectors.
While ecommerce uptake had initially been slow, it’s now surging. The 2022 South African Township CX Report, released in June, found that 70% of the 1,400 people surveyed made a purchase online in the past year. In the inaugural 2021 report, that percentage stood at just 28%.
Township-based clothing brands have sprung up and are thriving. The report found that most surveyed preferred buying locally-produced clothing labels, and with that has come greater demand for the items beyond the townships.
