Online Retailing in South Africa: An Overview

Goga, Shaista; Paelo, Anthea; Nyamwena, Julius

doi:10.2139/ssrn.3386008

Cited by 14 publications

(18 citation statements)

References 5 publications

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“…A survey by Visa found that 64% of South African consumers purchased groceries online for the first time because of the COVID-19 outbreak and concomitant movement restrictions in March 2020, and 53% purchased from a pharmacy. According to Goga, Paelo and Nyamwena (2019), reliability and delivery cost mechanisms, high prices and poor Internet services have hindered the growth of e-commerce in South Africa.…”

Section: South Africa's Online Shoppingmentioning

confidence: 99%

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Factors affecting consumer acceptance and use of mobile delivery applications in South Africa

Musakwa¹,

Petersen

2023

SA Journal of Information Management

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alone (Collison 2020).Consumers globally differ in their online shopping behaviours (Makhitha, Scheers & Mogashoa 2019). Leading e-commerce platforms worldwide also vary by region and include sites that are now household names: Amazon (USA), Alibaba (China) and Flipkart (India) (Li, Mirosa & Bremer 2020). Developed countries such as the United Kingdom, China and the USA are the leaders in online shopping, while developing countries lag because of a lack of Internet services and other factors (Li et al. 2020). According to Okonkwo (2019), despite the increased penetration of mobile Background: During the 2020 global coronavirus (COVID-19) outbreak, mobile delivery applications flourished, facilitating consumer access to groceries. Research has shown, however, that usage remains low in developing countries such as South Africa.Objectives: This research identifies factors that affect the acceptance and use of a mobile delivery application. It provides recommendations for application designers to improve application functionality and usability and for retailers to better understand customer needs.Method: This research adopted an interpretivist stance, utilising the Unified Theory of Acceptance and Use 2 (UTAUT2) as a theoretical framework. Data were collected and analysed from 4159 Google Play Store customer reviews using thematic content analysis. Reviews were anonymised, coded and categorised according to the UTAUT2 model constructs.Results: Performance expectancy and facilitating conditions were found to affect acceptance and use of the application. Effort expectancy, hedonic motivation and cost price had a moderate effect. Social influence, habit and price value did not impact the use of the mobile delivery application. Users will depend not only on recommendations from friends and family but also on service costs. Conclusion:This research revealed that users are more likely to accept and use a mobile delivery application if they find it helpful and receive quick assistance when facing technical challenges.Contribution: This research identifies factors that affect the acceptance and use of a mobile delivery application in a geographical area where usage remains low. Retailers may attract more customers and find more success in mobile delivery services by addressing customer concerns and challenges.

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Section: South Africa's Online Shoppingmentioning

confidence: 99%

“…Furthermore, South Africans prefer store shopping, with the total retail spent online only at 1% -2% in 2017 (Goga et al 2019). Statistics show that South Africa lags behind other developed markets such as China, whose retail growth and development have relied heavily on the Internet (Li 2020).…”

Section: South Africa's Online Shoppingmentioning

confidence: 99%

Factors affecting consumer acceptance and use of mobile delivery applications in South Africa

Musakwa¹,

Petersen

2023

SA Journal of Information Management

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“…Online trade, particularly with the advent of covid-19, is becoming prevalent. Goga et al (2019) reported that online platforms have revolutionized retailing in South Africa and globally. Retail brands and many more companies can reach unreached markets with a click of a button.…”

Section: South Africamentioning

confidence: 99%

The Future of Formal Retail in Sub-Saharan Africa: Brief Review and Opinion

Mwamba¹,

Qutieshat²

2021

OJBM

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As Sub-Saharan Africa economies boomed in the early 90s, formal retail trade grew as well. However, most of the Sub-Saharan economies' wealth depends on commodity price performance which in turn has impeded the growth of retail sector. The focus on Africa from the major retailers' perspective has always been short-term. As the challenges continue eroding opportunities, many are re-thinking whether there is hope in the long-term. While there is no heterogeneity, as each country is at a different stage in retail development, challenges of inflation, forex shortages, poor infrastructure development, policy shifts, and general government inefficiencies are not uncommon. Almost 90% of informal trade makes up the retail sector in Sub-Saharan Africa. The informal retail growth, riding on the political support of the governments, is crowding out the formalized retail growth. This work explores the body of existing knowledge on formalized retailing in Sub-Saharan Africa and focuses on how retailing has evolved in Sub-Saharan countries of Nigeria, Angola, South Africa, Zambia, and Malawi. The paper concludes by identifying the retail growth gaps from retail chains and the governments in the Sub-Saharan region. Recommendations for sustainability are highlighted. Future research gaps are equally identified to advance the understanding of formalized retail importance, challenges, and prospects for Sub-Saharan Africa.

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“…The studies suggest that organizations in developing countries are facing some challenges to fully reap its benefits to the fullest. Few studies have also suggested the ways to deal with the e-commerce barriers (Ghobakhloo et al, 2011;Zaied, 2012;Lambert and Davidson, 2013;Rahayu and Day, 2017;Goga et al, 2019). Iddris (2012), Rathaba (2019) and Bvuma (2020) had conducted studies to understand some of the factors impacting the adoption of e-commerce in developing countries as it is important to first understand the factors contributing towards its adoption (Savrul et al, 2014;Goga et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Few studies have also suggested the ways to deal with the e-commerce barriers (Ghobakhloo et al, 2011;Zaied, 2012;Lambert and Davidson, 2013;Rahayu and Day, 2017;Goga et al, 2019). Iddris (2012), Rathaba (2019) and Bvuma (2020) had conducted studies to understand some of the factors impacting the adoption of e-commerce in developing countries as it is important to first understand the factors contributing towards its adoption (Savrul et al, 2014;Goga et al, 2019). Johnson and Iyamu (2019) identified several factors that are important for the adoption of e-commerce in South African retail grocery store, including business drivers, alliance of actors, stock of knowledge and assimilation of processes.…”

Section: Introductionmentioning

confidence: 99%

Adoption of E-Commerce in Johannesburg Retail Sector

Proceedings of the International Conference on Industrial Engineering and Operations Management

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The rapid expansion of electronic commerce or e-commerce in the recent years is increasingly blurring the boundary between "conventional" and "electronic" commerce. Despite the rapid growth, e-commerce needs improvements for better adoption and efficient usage. This paper examined forces driving the adoption and usage of e-commerce in retail sectors within Johannesburg, South Africa. The study used quantitative approach and collected data from about 100 business owners and consumers in Johannesburg North using structured questionnaire. The study revealed that the internal driving force has contributed to the adoption of e-commerce, including initiation by owners, clients and service providers. It was observed that the business owners are being driven to adopt e-commerce (i) due to recommendations from business associates, (ii) for competitive advantage, and (iii) to cater for customers' online preferences. They mostly reported using Internet and websites to promote their products and search for new or potential suppliers, as well as to order goods from suppliers and send electronic invoices to customers.

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Online Retailing in South Africa: An Overview

Cited by 14 publications

References 5 publications

Factors affecting consumer acceptance and use of mobile delivery applications in South Africa

Factors affecting consumer acceptance and use of mobile delivery applications in South Africa

The Future of Formal Retail in Sub-Saharan Africa: Brief Review and Opinion

Adoption of E-Commerce in Johannesburg Retail Sector

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