Net shopping is booming

South African online spending was set to continue growing in strong double digits this year and next year, Efi Dahan, PayPal’s regional director for Israel and Africa, said this week.

This compared with western Europe, where growth was in the single digits, he said.

Total local online spend was expected to reach R46 billion this year – up 24% from last year.

Next year, domestic online spend is set to climb by 17% to R54 billion, according to PayPal and research specialist Ipsos’ third annual cross-border commerce report.

Local mobile spending is projected to rise by 48% this year to R14.2 billion, while, next year, mobile spend is forecast to reach R21.4 billion – up 51%.

Dahan said that the survey didn’t determine how many local internet shoppers there were.

However, the survey estimated that 1.4 million South Africans were expected to shop internationally this year, and they were forecast to spend R8.8 billion.

Cross-border shoppers from South Africa are making purchases mostly from the US. China and the UK are the second and third most popular online sales countries, respectively.

The survey found that 58% of South African adults with an online presence shopped in the past 12 months. The report also found that 53% of respondents to the survey planned to increase their online spending in the next 12 months.

The reasons for the planned increase in online spending include the following: the convenience of shopping online; a way to save money; a change in disposable income; and the expectation that shipping will become faster and cheaper.

The most popular online categories for South African consumers are downloadable digital entertainment and education items, event tickets, as well as apparel or footwear.

TALK TO US

Do you plan to do more online shopping this year?

SMS us on 35697 using the keyword ONLINE and tell us what you think. Please include your name and province. SMSes cost R1.50

ZAR/USD
16.33
(-0.06)
ZAR/GBP
21.08
(-0.04)
ZAR/EUR
19.33
(-0.03)
ZAR/AUD
11.90
(-0.03)
ZAR/JPY
0.16
(-1.15)
Gold
1949.72
(+0.03)
Silver
26.74
(+0.09)
Platinum
928.80
(+0.44)
Brent Crude
43.52
(-0.32)
Palladium
2356.01
(+0.63)
All Share
54673.65
(-0.66)
Top 40
50399.16
(-0.59)
Financial 15
9841.32
(-2.14)
Industrial 25
72558.00
(-1.08)
Resource 10
55438.10
(+0.58)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1301 votes
It depends on how the funds are used.
73% - 8626 votes
No. We should have gotten the loan elsewhere.
16% - 1899 votes
Vote