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
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.