E-commerce is on the increase in South Africa, but many shoppers are reluctant to shop online. DONOVAN MARAIS of Sage Pay provides some insight into what is holding them back.
E-commerce is on the rise in South Africa. According to recent research conducted by Ipsos on behalf of FNB and Paypal, 22% of South African Internet users have made purchases online, and 48% expect to do so in the future.
This is clearly a growing and potentially lucrative market for small businesses that are able to give customers the convenience and flexibility of doing business online. But what about the 30% of people who are not shopping online? What’s holding them back and how do can they be persuaded to make the big leap?
Here are a few of the reasons some people are still reluctant to shop online, and a few ideas about how you, the small business owner, can change their minds.
1. Concern about delivery times
Especially as we enter the festive season, people are shopping for gifts for their friends, loved ones, or business contacts. Many of them are anxious about whether an item they order online will be shipped in time to reach the recipient for Christmas. According to Ipsos, 58 percent of those who have not shopped online say that concerns about not receiving items they have ordered is the reason they don’t do so.
Be sure that you work with a reliable courier company or have a good driver to handle your deliveries this time of the year. Speak to your couriers and suppliers to find out about their lead times and don’t make any promises that you can’t keep. If you miss a Christmas shipping date, you’ll probably lose the customer forever.
Tip: Post your cut-off dates for Christmas orders and shipments prominently on your Website, marketing emails, and other communications so that customers are aware of the deadlines and stick to them.
2. Fraud and security fears
Some 67% of non-online shoppers in the Ipsos survey voice concerns about the security of online payments. With a flood of seasonal spam, many consumers are especially nervous at this time of the year. Payment providers, banks, and merchants clearly all have a lot to do to promote public awareness of the many scams and threats out there, while reassuring customers that online shopping is generally as safe as a visit to the mall.
You’ll need to offer an easy and trustworthy way for customers to pay online when they shop on your site. Be sure to tell your customers how you process payments on your site to give them peace of mind about its security. Also, detail your privacy and your refunds policy on your site.
Tip: Payment providers such as Sage Pay offer secure payment gateways that allow customers to pay easily using different payment types such as Bank EFT, Credit Card, Cashier payments at major retail stores and mobile payments via a QR code. These solutions mean you do not need to approach multiple service providers.
3. Lack of awareness
Your customers might not know that you have a full e-commerce site in place. Be sure to promote your digital presence on your marketing materials and in the advertisements that you place in the press.
Tip: Your online customers might have a different profile to the people who visit your physical store, and hence may not read the papers or listen to the radio stations where you usually advertise. Use paid search ads, social media, and other digital channels to market to them in a measurable and cost-effective manner.
4. Testing the goods
Depending on what you sell, people might want to see the product or handle it before they buy it. Few people are happy to buy a car without a test drive or clothes without trying them on. But in most cases, they’ll be doing a lot of their research online. Here’s your opportunity to entice them into the store and convert the sale.
Tip: Offer a voucher for a small discount to entice web visitors into your store if they have been researching a product you sell. Or allow them to fill in an online form to book a test drive or ask for a sales rep to contact them.
* Donovan Marais, Channel Manager at Sage Pay
Get your passwords in shape
New Year’s resolutions should extend to getting password protection sorted out, writes Carey van Vlaanderen, CEO at ESET Southern Africa.
Many of us have entered the new year with a boat load of New Year’s resolutions. Doing more exercise, fixing unhealthy eating habits and saving more money are all highly respectable goals, but could it be that they don’t go far enough in an era with countless apps and sites that scream for letting them help you reach your personal goals.
Now, you may want to add a few weightier and yet effortless habits on top of those well-worn choices. Here are a handful of tips for ‘exercises’ that will go good for your cyber-fitness.
I won’t pass up on stubborn passwords
Passwords have a bad rap, and deservedly so: they suffer from weaknesses, both in terms of security and convenience, that make them a less-than-ideal method of authentication. However, much of what the internet offers is independent on your singing up for this or that online service, and the available form of authentication almost universally happens to the username/password combination.
As the keys that open online accounts (not to speak of many devices), passwords are often rightly thought of as the first – alas, often only – line of defence that protects your virtual and real assets from intruders. However, passwords don’t offer much in the way of protection unless, in the first place, they’re strong and unique to each device and account.
But what constitutes a strong password? A passphrase! Done right, typical passphrases are generally both more secure and more user-friendly than typical passwords. The longer the passphrase and the more words it packs the better, with seven words providing for a solid start. With each extra character (not to mention words), the number of possible combinations rises exponentially, which makes simple brute-force password-cracking attacks far less likely to succeed, if not well-nigh impossible (assuming, of course, that the service in question does not impose limitations on password input length – something that is, sadly, far too common).
Click here to read about making secure passwords by not using dictionary words, using two-factor authentication, and how biometrics are coming to
Code Week prepares 2.3m young Africans for future
By SUNIL GENESS, Director Government Relations & CSR, Global Digital Government, at SAP Africa.
On January 6th, 2019, news broke of South African President Cyril Ramaphosa’s plans to announce a new approach to education in his second State of the Nation address, including:
- A universal roll-out of tablets for all pupils in the country’s 23 700 primary and secondary schools
- Computer coding and robotics classes for the foundation-phase pupils from grade 1-3 and the
- Digitisation of the entire curriculum, , including textbooks, workbooks and all teacher support material.
With this, the President has shown South Africa’s response to a global challenge: equipping our youth with the skills they’ll need to survive and thrive in the 21st century digital economy.
Africa’s working-age population will increase to 600 million in 2030 from a base of 370 million in 2010.
In South Africa, unemployment stands at 26.7 percent, but is much more pronounced among youths: 52.2 percent of the country’s 15-24-year-olds are looking for work.
As an organisation deeply invested in South Africa and its future, SAP has developed and implemented a range of initiatives aimed at fostering digital skills development among the country’s youth, including:
AFRICA CODE WEEK
Since its launch in 2015, Africa Code Week has introduced more than 4 million African youth to basic coding.
In 2018, more than 2.3 million youth across 37 countries took part in Africa Code Week.
The digital skills development initiative’s focus on building local capacity for sustainable learning resulted in close to 23 000 teachers being trained in the run-up to the October 2018 events.
Vital to the success of Africa Code Week is the close support it receives from a broad spectrum of public and private sector institutions, including UNESCO YouthMobile, Google, the German Federal Ministry for Economic Cooperation and Development (BMZ), the Cape Town Science Centre, the Camden Education Trust, 28 African governments, over 130 implementing partners and 120 ambassadors across the continent.
SAP’s efforts to drive digital skills development on the African continent forms part of a broader organisational commitment to the UN Sustainable Development Goals, specifically Goal 4 (“Ensure quality and inclusive education for all”)
A core component of Africa Code Week is to encourage female participation in STEM-related skills development activities: in 2018, more than 46% of all Africa Code Week participants were female.
According to Africa Code Week Global Coordinator Sunil Geness, female representation in STEM-related fields among African businesses currently stands at 30%, “requiring powerful public-private partnerships to start turning the tide and creating more equitable opportunities for African youth to contribute to the continent’s economic development and success”.
Click here to read more about the Skills for Africa graduate training programme, and about the LEGO League.