I Like It, But...

When it comes to online retailing, the details will make or break you, especially with spending-conscious consumers who feel entitled to discounts or added value.

It was no surprise when Mr Price warned the industry in its January results announcement that South Africans are becoming more cautious about spending. Mirroring a worldwide trend, our local market is choosy about where their money goes, likely because of Covid-19 numbers and reduced household incomes. One concern is that online consumers by now feel entitled to some sort of a discount or value add, and retailers are still coming to terms with how consumer behaviour has changed over the course of the pandemic.

Online shopping and e-commerce have certainly become second nature for African consumers across the board. The industry has seen both specialist niche and more general retailers pivot in response to the pandemic. For example, Godiva is closing its brick-and-mortar stores in the US (but keeping them open in most of Europe), while large local online retailers like Takealot are changing management structures and investing in new ventures to better position themselves to take advantage of the changes in consumer behaviour.

What can smaller online retailers do to keep the money coming in while adapting to how their customers’ behaviour is changing? Read on for five fundamental eCommerce tips:

• Keep up with the zeitgeist