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Picture: ISTOCK
Picture: ISTOCK
Image: iStock

Consumers are looking for lower prices and added value. The recently released Nielsen Global Connected Commerce Survey reveals that just over half of all local online shoppers use the Internet to check whether they’re getting the best possible value before they make a purchasing decision. And more than 40% admit to using price-saving apps or deal websites when they plan their grocery shopping. Convenience is a driving factor for growing online shopping, with 46% of respondents saying it saves them time.

MD of Nielsen Africa Retailer Services and E-Commerce, Harsh Sarda, ascribes consumers’ views to the way digital devices enable consumers to shop where and when they want to. He says the insights provided by the report suggest that the prevailing view of a shopping outing in a physical store needs to be revisited.

Consumers are increasingly including digital touch points throughout the path to purchase – reviewing products online, doing price comparisons at home and using their smart phones in-store. It’s no longer about picking up what you need at your nearest store; today’s consumers live a life that demands online convenience, and this ultimately can create opportunities for physical retailers.

Noted in the survey was the fact that not all kinds of products offer equal advantages online. The majority of online shopping takes place in the categories of books, music, travel and event ticket purchases. Overall, consumers tend to shop online less for consumable goods than for durable ones. Sarda says this will change once initial adoption rates increase and retailers manage to overcome challenges relating to quality and delivery.

An ideal online payment gateway has two characteristics, says Sarda: it is secure and allows consumers to pay the way that suits them best. But education is needed to build consumers’ trust in online transactions, and retailers need to prove they are protecting personal information and must look to providing better experiences for clients than they would have had had they entered a physical store.

Thanks to technology, consumers have access to a myriad new products. Cross-border e-commerce is a growing trend in SA; half of local respondents who have purchased online in the past six months report that they bought items from foreign retailers. Sarda says the middle classes are starting to trade up, seeking a wider choice of products than what is locally available. In addition, often they are able to purchase directly from foreign retailers at a lower price than would be possible locally.

Despite the growth of online shopping, barriers still exist. Consumers are put off by their inability to inspect goods, which is particularly important when it comes to the purchase of consumables. Brands need to be transparent and show the origins of seasonal, locally produced goods and state how they are transported. Return policies and concerns about not being home to receive deliveries were also highlighted as concerns.

Ultimately, what the survey has shown is that consumers no longer perceive in-store and online shopping as separate entities. Retailers need to master the creation of a seamless, omni-channel experience and focus more on shoppers’ needs, personalisation and investment into mobile-based solutions as well as digital incorporation into the in-store environment.

The big take-out: Online shoppers in SA use digital means for price comparisons and are attracted by the convenience of online shopping. They no longer view the physical store and online shopping as separate entities, and therefore retailers must create a seamless omni-channel experience.

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