Gauteng Business News

Send  Share  RSS  Twitter  27 Mar 2015

E-COMMERCE: Online Sales in South Africa Are Growing Markedly – SA Gateway.


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In the past few years, online transactions have grown markedly in South Africa, pointing to the fact that consumers are becoming more familiar and comfortable with online processes, and are becoming more positive about partaking in an interactive online space.

This is according to Dieter Febel, MD of leading ISP, SA Gateway, sister company of Esquire Technologies, one of the leading distributors in Africa of IT, mobility, digital and lifestyle products.

Febel believes e-commerce can provide consumers access to more information than some traditional methods, increase access to a broader range of products, provide tailor-made services to customers’ needs, and can also result in efficiency gains.

According to the MasterCard Worldwide Online Shopping Survey, South Africa’s online shoppers grew by 58% in 2012.This is up from 53% in 2010 and 44% in 2009. According to their research in 2013, e-commerce makes up about 2% of the total retail market in South Africa.

Another survey done by the Digital Media and Marketing Association (DMMA) discovered that people who are accustomed to the internet – and who have already used it for a couple of years – were 59% more likely to shop online, which means, as Internet browsers increase in future, so will online shoppers.

A report published in July 2013 by the Organisation for Economic Cooperation and Development (OECD) pointed out that e-commerce is an efficient economic engine that can effect revenue markedly - and market reach.

Esquire reports online sales grow 600%

Meanwhile, Esquire recently reported that it reached a milestone of 30 000 online orders placed on its website to date.

This was confirmed by Mahomed Cassim, CEO of Esquire Technologies, who said the company commenced online sales four years ago. “In the first two years of starting this online drive we notched up only 5000 sales –but this figure has now jumped to 30 000, which is a 600% growth in two years. We are expecting this figure to rise significantly in the next few years, because many of our clients are now seeing the value of placing orders 24 x 7,” he said

Esquire is currently one of only a few distributors in South Africa which offers an online ordering facility for all the products they distribute.

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