E-commerce in South Africa: Time to Strike

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Heard the saying “Strike when the iron is hot”? There is no better time like the present, especially¬†for e-commerce in South Africa.¬†¬†E-commerce is simply the buying and selling of products or services online, it is a growing industry and you definitely¬†want to be part of this industry.

Firstly everything is going digital, not only our currencies. Online shopping is replacing traditional methods of shopping. The global online industry has grown exponentially. In South Africa online spending is forecasted to reach R53 billion by 2018. Already 43% of South African consumers do their shopping online.

Further evidence of¬†E-commerce taking over is in the high amounts of retail stores closing throughout the country. The scariest thing is that¬†E-commerce in South Africa has not yet really taken off.¬†This is great because it means that there is plenty of opportunity for more players in the game.¬†In spite of the high numbers of¬†E-commerce consumers in South Africa, the¬†E-commerce activity does not yet compare to the global trends in the rest of the world. This is mainly because¬†E-commerce in South Africa isn’t always a particularly¬†smooth ride. Some online stores poor customer service make online shopping seem like more of hassle than a help.¬†Also most South African online stores don’t communicate in effectively with consumers. For example they have no tracking package features on their websites.

 

But in all the inefficiency¬†there is opportunity.¬†Because most of the competition,¬†for the most part very mediocre¬†services if you introduce an online store that offers the best service your already going to be ahead in the industry. Also because there is such weak competition, offering the best¬†prices and services¬†will not only put you ahead of the pack, but will also give you the opportunity to monopolise the industry. In South Africa, yet alone Africa we don’t have big online retailers that have yet dominated the e-commerce¬†market.¬†

This is great because it also provides small players ¬†the opportunity to capitalise from the¬†e-commerce¬† market. You don’t have be the next Jeff Bezos to make money from the e-commerce market. You set up a simple online store using Shopify or any other website building platform. As long you provide a competitive product or service with great efficiency¬†you will be able to get a nice profitable piece of the pie. If you want to learn how to start an online business make sure to subscribe¬†to the Kukura Capital Youtube channel. We will soon have a video tutorial series on how to start an online business.

Another way to profit of the e-commerce market is to invest directly in e-commerce businesses. You can do this buy offering venture capital to e-commerce business. If you want to learn how to be a venture capitalist you can read the article linked below. Another way to invest in e-commerce companies is through buying stocks in e-commerce companies through a stock exchange.There are several ways to get involved in the e-commerce market, and its always best to strike when the iron is hot.

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