Why e-commerce is slow to take off in SA
Many e-retailers are profitable, but they should be reinvesting rather than profit-taking for online shopping to really take off
E-commerce is at a crossroads in SA. This is one of the findings of the Online Retail in SA 2019 survey conducted by research group World Wide Worx.With online sales making up 1.4% or R14bn of total retail sales, and 4% of consumer shopping online, the sector is on a firm footing. Even so, for e-commerce to really take off, local online businesses need to start reinvesting their earnings.This isn’t happening. "A significant impediment to the growth of e-commerce in SA is the unwillingness of business to reinvest. Only one in five companies surveyed invested more than 20% of their online turnover back into their online store. Over half invested less than 10% back," the report says.It notes that this is despite 71% of all online retailers surveyed saying they were profitable.That’s the problem, says World Wide Worx MD Arthur Goldstuck. "A lot of e-retailers are profitable, but they have to make the choice between taking profit and reinvesting, and they are generally not choosing wisel...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.