Online spend in SA will hit R45bn in 2018, and consumers are shopping the globe

Source: , 17/09/2018

South Africans are forecasted to spend over R45 billion online this
year, with over 60% making a purchase from an overseas retailer. This
is according to the fourth annual cross-border e-commerce report
released by PayPal and Ipsos, which shows that online shopping is on a
steady incline in the country.

Sixty-nine percent of active online adults shopped online in the past
12 months, bringing the total estimated spend in 2018 to R45.3
billion, showcasing a 19% increase from 2017.

Online shopping is expected to increase even more over the next 24
months, with a forecasted total spend of R61.9 billion in 2020, which
will showcase a 36% increase from 2018. The reason �` 75% of adults
interviewed indicated the convenience of shopping online.

“Advances in technology, such as mobile technology and access to data,
have made it easier for South Africans to shop online,” commented Efi
Dahan, general manager for PayPal Eastern Europe, Middle East and Africa.

The three most popular online shopping categories for South African
consumers who shop online were clothing/apparel (53%),
entertainment/education (digital/downloadable) (51%) and event tickets
(51%).
More and more, consumers in sub-Saharan Africa are looking beyond
their borders to get the products and services they need...
Global shopping on the rise

Sixty-two percent of South African online shoppers purchased something
from an overseas retailer in the last 12 months, compared to 43% in
the previous year. Clothing/apparel, footwear and accessories came in
as the most common cross-border purchase (68%) with jewellery/watches
(62%) second most popular and consumer electronics,
computers/tablets/mobiles and peripherals being the third purchase of
choice (54%).

“South African online shoppers have realised that buying from overseas
is not the hassle it once was, and that they can purchase must-have
items, often at a better price,” adds Dahan.

South African online shoppers purchasing from overseas chose the U.S.
as their online shopping destination of choice (34%) due to better
prices, availability and variety of styles, followed by China (28%)
and the UK (16%). The research also indicated that Christmas, Black
Friday and seasonal sales are the three top occasions for shopping
cross-border more frequently than usual.
With the rise of e-commerce in South Africa taking some bold steps
during the last few weeks with the merger of Superbalist and Spree, it
seems that mobile e-commerce may finally be on a path to reaching its
full potential...
Mobile driving growth
The convenience of shopping with a mobile phone is changing the way
South Africans approach e-commerce. The research indicated that 62% of
online shoppers have used their mobile device for their purchases,
resulting in an estimated R14.9 Billion spend in 2018. This is
estimated to grow to a R30.4 billion by 2020, doubling in value from 2018.

“Mobile technology is transforming e-commerce in Africa, and consumers
are more likely to have a mobile device than a bank account,”
continued Dahan. “South Africans are becoming more comfortable with
mobile shopping due to easy-to-use apps for ordering car rides or food
becoming commonplace.”