Global sales through social media platforms are expected to reach $2 trillion by 2025, compared to estimated $700 billion in 2024.
This is according to DHL’s global Online Shopper Trends Report 2024, which surveyed 12 000 shoppers from 24 countries, including South Africa.
According to the report, social commerce - allowing users to buy products directly via networks such as Instagram and Facebook - is gaining popularity in n Sub-Saharan Africa (SSA).
With this also comes a shift in preferred devices for buying online: the survey found that 75% of online shoppers from SSA use their smartphones as their primary device for browsing and purchasing, a trend that has implications for the presentation of products and the structure of online stores.
The majority (77%) of social media shoppers say its important to know who the delivery provider is before purchasing.
Moreover, 61% will abandon their basket if not offered their preferred payment method, and 35% of online shoppers under the age of 45 use voice search to make a purchase.
Amadou Diallo, CEO of DHL Global Forwarding MEA, says the report aimed to assess how people shop online, as well as understand what causes them to abandon their shopping baskets.
“High delivery costs, long delivery times, having to pay for returns, not enough product information, and not enough product images were some of the top reasons cited by global shoppers. Offering reliable delivery and returns can help solve shoppers’ frustrations and improve their experience. In Sub-Saharan Africa, consumer purchasing patterns are being impacted by social and technological trends, including social media. People also want to know who the delivery provider is before making a purchase.”
App-based marketplaces
The DHL report highlights that app-based platforms such as Shein and Temu have gained immense popularity across SSA due to their vast product offerings at affordable prices.
“These platforms share the everyday appeal of offering online shoppers an enormous range of products seamlessly integrated into user-friendly mobile apps. Shein is immensely popular with shoppers in South Africa, while Temu has gained significant traction among shoppers in the UAE,” says Daiallo.
The results of an earlier study by World Wide Worx, in partnership with Mastercard, Peach Payments and Ask Afrika, showed that online retail in South Africa reached R71 billion turnover in 2023. Online sales spiked in SA last year, growing 29% from 2022.
This report also stated that despite the growth of online shopping, “concerns about personal financial security remain a significant barrier, with many shoppers wary of entering personal details online or fearing that online shopping is prone to fraud”.
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