Online shopping on the rise
Online shopping has increased significantly in SA and continues to show potential for growth, says MasterCard.
According to the latest MasterCard worldwide online shopping survey; price, convenience, and security are key factors are influencing the purchasing decision.
The survey revealed that the number of South Africans shopping online has steadily increased over the past two years, with 58% of respondents in a survey of active Internet users saying they use the Internet for shopping.
This is an increase from 53% that said they shop online in 2010 and the 44% that gave the same answer in 2009.
When choosing and online retailer from where to make their purchases, the majority of respondents cited lower prices (91%), payment convenience (90%) and secure payment facilities (90%) as their main motivators for doing so. They also said that websites should have a good reputation, be user friendly and that the online retail provider of choice should offer low or no extra charges for delivery.
“The numbers speak for themselves. The latest MasterCard survey found that among those shopping online, a majority 89% of respondents are satisfied with their overall online shopping experience, with 73% likely to make a purchase in the next six months. While these responses have remained static since last year, they show that the level of satisfaction has remained consistent as the number of online shoppers has grown,” says Anna Jones, General Manager SA, MasterCard worldwide.
The survey, which serves as a benchmark that measures consumers propensity to shop online, was conducted across 25 markets between 5 December and 6 January 2012. The South African report surveyed banked consumers who access the Internet at least once a week.
The findings back up our research into the way online shopping evolves. We have shown that, once people are experienced Internet users and do online regularly, their propensity to shop online increases dramatically. The key is to convert that propensity into shopping behaviour and this survey pinpoints where and why that conversion is happening,” says Arthur Goldstuck, MD of World Wide Worx.
The survey revealed that South Africans who shop online do so because they find it convenient and easy and that the wide range of goods available is appealing. They also look to online portals to research purchases they are planning on making with 78% of online shoppers saying that they look at online reviews before they purchase while 73% said that they investigate online reviews of the retailer themselves before making a purchase.
Among the most popular purchases made online were products and services related coupon/deal sites, online gaming, applications, music download and tickets to arts or music events.
Ninety-five percent of respondents mentioned that they had visted deal of coupon websites, which have made a noisy entrance onto the local online environment.
The research also revealed increases in the number of people who are shopping online for travel purposes: 87% of respondents have made purchases from airlines and 71% have made hotel bookings online in the last three months.
The survey also revealed that South Africans they prefer not to shop online for their groceries, with only 9% making this their first choice to avoid the chore of grocery shopping.
When it comes to paying for online purchases, the majority of respondents (84%) use payment cards or EFTs or a combination. Security is less of an issue than it has been in the past, with 38% - a decrease from 47% last year - of respondents saying they are not convinced the medium is safe.