Exploring the challenges of e-commerce as an emerging market in the SA retail sector

Abstract

The retail sector in South Africa is actively participating in the multilateral trading system and is finding great opportunities to expand its target market. Strong groundwork has been laid for the development of e-commerce in South Africa by the swift rise in internet penetration, mobile phone usage and the uptake of mobile innovations. These factors have greatly increased financial inclusion and increased the use of electronic payments. However, low bank rates, lax industry laws and regulations and a dearth of reliable power sources are various obstacles that hinder the growth of e-commerce. To promote e-commerce activities, it is essential to reduce load shedding, improve infrastructure and strengthen the legal framework. The study conducted a sample-based qualitative research of 10 subjects and found that infrastructure availability, efficient logistics systems, various online payment methods for customers, language preferences in the South African retail industry, management's comprehension of the core business are some of the most important requirements for successful e-commerce. The research also revealed that broadband connectivity and electricity are important for supporting the growth of emerging markets in this sector. The sustainability and success of e-commerce is largely dependent on brand identity and customer demographics, even though it is advantageous for online businesses to provide a personalised experience and to take cultural differences into account.