online shopping â ???? from the couch, while eating pizza â ???? works very well. It’s much easier to compare prices than it is to drive from shop to shop. You have more information at hand than the normally inexperienced and disinterested salesperson can share when one of them is interested enough to look up from their cell phone to get their job done.

Nonetheless, many shoppers see hard-to-navigate websites and mishaps “out the door” without buying anything.

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“Ecommerce could increase 100% to [reach] 5.6% of the total retail pie if malfunctions are resolved”, According to the latest SA Digital Customer Experience Report, the third annual survey of customer perceptions and experiences when shopping online.

Taken together, breakdowns at online retailers ???? Trustworthiness, ease of use, security, delivery and after-sales support are estimated to cost e-retailers nearly Rs.12 billion in lost sales, according to a survey by the online survey community ovatoyou and the digital marketing agency Rogerwilco.

In addition, ovatoyou calculated that frequent shopping cart abandonments â ???? when buyers fail to complete their transactions? amounts to more than R20 billion. â ?? Over R 30 billion is left on the table, which happens to be the current market value of e-commerce in SA. ???? says ovatoyouâ € ™ s Amanda Reekie.

“An amazing 96% of respondents said they would spend more online if e-retailers” customer experience was better, â ???? says Reekie.

Reekie explains that the researchers based their calculation of R30 billion in lost sales on two publicly available sources of information: the current value of e-commerce in South Africa, as estimated by World Wide Worx, and the number of online shoppers in South Africa SA appreciated by We Are Social.

According to World Wide Worx, e-retailers have an annual turnover of 30 billion rand. Other sources put it higher. For example, a recent study by Deloitte Africa estimates that online sales exceeded R40 billion in 2019 and have grown by 13% annually since then.

We Are Social has calculated that around 21.9 million South Africans have purchased products online, which is the number calculated by Deloitte. Deloitte estimates that the number of online shoppers in South Africa will grow to 32 million by 2024.

“We then checked the median that our respondents would increase their online spend if the experience was better,” says Reekie.

â ?? We have the median in the range of â ???? For those who think they would spend between 10 and 25% more, our calculations were based on 17.5%. The net impact of bad online experiences can thus be calculated at R 11.95 billion. according to Reekie.

The value of incomplete transactions is even higher at over R 20 billion. 76% of the respondents say that they don’t make it to the checkout, but rather give up their “shopping cart”? before completing their purchases.

“More than three-quarters of the 2,000 respondents in the study said they gave up buying,” says Reekie, adding that some of them give up more often and some less.

In the study, respondents were specifically asked to indicate how often they fail to make purchases and why. It used the data to calculate the weighted average of lost sales, with the result that sales would be 20 billion ren higher if buyers actually checked out.

More than half of the respondents said that high shipping costs were responsible, 32% said long delivery times were a deterrent.

A third of online shoppers complained about too many steps in the buying process, slow websites and lack of support reasons for abandoning their shopping cart.

Payment problems â ???? either a complete mistake in processing the transaction (called by 26%) or a problem with a discount code (20%) â ???? continue to represent significant barriers to completing the purchase.

When analyzing what part of the experience was keeping consumers from increasing their spend, three key issues were highlighted: delivery, credibility, and the overall experience.

â ?? The opportunity cost is pretty clear; Consumers expect a higher level of experience from brands they shop from online. Part of this could be because they got used to the experience of dealing with an Amazon or Takealot, â ???? says Charlie Stewart, CEO of Rogerwilco.

“These brands have set the bar high and local etailers need to improve their online game if they are to convert the huge consumer appetite for online shopping into frills and cents.”

Online shopping has grown significantly since the pandemic began and is one of the few sectors that is growing.

The user base is broad and the report shows that 82% of respondents have made at least one online purchase. More than 70% of respondents said they had a household income of less than R 10,000 per month.

This entry of a whole new group of buyers, coupled with an increase in the number of categories people shop in, is taking online shopping out of the narrow niche it was, says Reekie.

Significantly, 32% said they had increased the number of online stores they shop from, 31% made online shopping part of their shopping routine, and 20% said they made more purchases through social media.

“With improved connectivity and an abundance of online shopping options, there is no good reason why SA should lag behind other markets like the US and UK. The customer experience really holds them back, â ???? says customer experience expert and commissioning partner Julia Ahlfeldt.

She believes the shopping cart abandonment needs to be brought into the spotlight considering the cost of getting your feet in the door, or rather, turning your eyes to the side. “Retailers need to investigate the functional and emotional reasons why buyers don’t complete their transactions,” she says.

When sales are made, e-merchants must complete the rest of the online experience offline, and this is where some of the key aspects of the transaction come together.

This is the point at which the client’s investment was made â ???? be it time, energy or money? comes into play, so ovatoyou.

A third of respondents spoke of the delivery of their purchase to define their experience and perception of the brand.

As important as delivery of the purchase is, it was exceeded by 34% of respondents who said the unboxing of their new purchase was the most memorable aspect of their online shopping experience.

In recent years, unboxing has become one of the most popular video categories on YouTube.

“Unboxing is a big missed opportunity for brands,” says Ahlfeldt. “Items that are randomly thrown into a delivery box does not say”

The first is the experience itself. According to Rogerwilco, big stores like Amazon and Takealot got this part of the trip right. Stewart says that having a good customer experience minimizes frustration, reduces doubts, and prevents customers from switching to a competing site.

“Retailers need to realize that consumers are more loyal to the experience than to the brand,” says Stewart.

The second factor is the brand response: 32% of the respondents stated that they shop in well-known category and branded stores. Nike, Samsung and Apple were just a few of the names mentioned, as were Clicks and Superbalist.

While peer reviews go a long way towards building trust, customers are also more likely to buy from a brand they have seen advertised. This insight should not be missed by newcomers who have to take into account the costs of marketing and branding when planning the budget for their online shops, says Stewart.

The third trust factor is security. Around 12% of respondents said that online stores wanted to make a clear commitment to the confidentiality and security of their personal information, while 11% said they needed a secure environment for their transactions.

When it comes to that all-important purchase, a remarkable 55% of shoppers based their decisions on social media posts, and 54% looked at reviews on the brand’s website. Another 35% of respondents in the study used third-party review sites.

It is important to note that negative comments would hold up 64% of buyers and lead to a missed sale.

Recommendations from family and friends are just as important as ratings. 54% of respondents say they will follow recommendations, closely followed by promotional information and branding.

If the buying experience is positive, 78% of respondents say they share it with their friends and family (who are then responsible for 54% of purchasing decisions).

Almost 60% of shoppers would report good service on social media or online review sites. A similar number said they would buy more from brands they like.

Conversely, a bad experience is also shared: 52% would tell family and friends and 45% would post on social media.

It is noteworthy that more than half of the respondents said they would never use the offensive website or brand again.

Stewart reiterates the importance of online shopping. â ?? SA is online. Whether people are shopping for groceries, buying wigs, or making investment decisions, we’ve seen a sharp surge in consumer numbers over the past 18 months. Desire to connect with brands through their phones, televisions, watches, laptops, and computers.

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The macro experience is unforgivable for such a large chain. Many items have virtually no descriptions of the model brand and number. Try and buy a generator online from anywhere and they will not tell you the price you have to query online and divulge all of your personal information. The same goes for Solar.

I have been buying practically everything online and have been for years. Takealot (maybe not always the cheapest) but it just works.

My advice to chains / stores, get your online right (descriptions, price, ratings, clear refund policies, fulfillment that works for both delivery and pick-up) not just put together a website for just one presence, hey (Macro).

Agree to macro. When buying online, you need more details about the item in order to rate the item.

Payment security is also an issue. I hate giving my credit card details online and then one of the payment options on the website requires you to log into your bank account. There is no way to log into my bank account from the website. Few offer EFT options.

Personally, I think these lost sales figures are dubious. I’ve bought great items from Takelot and Yuppiechef and Amazon over the past year and the experience and service has been incredibly good. I had a “lost” sale because I chose the wrong payment option. Think most people abandon sales when they have to register.

Probably right on the register comment. Some have a guest check-out system so the buyer only needs to provide the minimum name and address for delivery. & contact phone number.

For me
– I hate to register – have a guest option
– I hate knowing the shipping cost in step 10
– Hate that there is a 10 step
– I hate slow websites when I scroll through my shopping cart and keep shopping
– Hate that you can’t view all of the items. What about this 16/32/64 / all options. I hate clicking the next button
– hate bad search filters (you’re looking at TakeAlot)
– I hate that you are showing out of stock items by default.
– I hate that you can do a Google search to find items that are no longer even worn.

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South African online retailers are missing out on billions
Online retailers are missing out on R30bn