E-commerce in South Africa is expected to experience significant growth in 2023 as more and more consumers turn to online shopping to purchase goods and services.
According to a recent study by market research firm eMarketer, e-commerce sales in South Africa are projected to reach R34 billion by the end of 2023, an increase of 12.5% from 2022. This represents a significant opportunity for small businesses willing to explore their options online.
This growth can be attributed to the increasing popularity of smartphones and the growing number of South Africans who have access to the internet.
According to Statista, South Africa's internet penetration rate is predicted to reach 82% in 2023 and will continue to grow in the coming years.
“The maturing e-commerce market presents an exciting opportunity for small businesses to expand their reach and increase their revenue streams, but many still face challenges when making the transition online,” says iKhokha CEO Matt Putman.
A survey by the National Small Business Chamber found the biggest challenges faced by small businesses when it comes to e-commerce are the high costs of setting up an online store (29%), the lack of knowledge about how to set up and run an online store (25%) and the lack of trust in online payments (21%).
“Having identified the growing consumer appetite for online shopping pre-pandemic, we set out to solve these challenges by building easy-to-use, affordable e-commerce products tailored to small businesses,” says Putman.
One solution that can help small businesses overcome these challenges is iK Pay Gateway, which enables businesses to easily accept online payments on their Wix or WooCommerce websites.
iKhokha also offers one of the lowest starting transaction rates on the continent, starting at 2.85% excluding VAT. This competitive rate helps small businesses put more money in their pocket during a critical time in their online business journey.
Another product for those looking to do more business online is iK Pay Link. Using this feature on the iKhokha app, business owners can send payment links via e-mail, WhatsApp and social media. Through iK Pay Link, iKhokha aims to help more businesses capitalise on social commerce and sell online without the costs of setting up a website.
“Our focus has always been to create more card acceptance opportunities. These easy-to-use e-commerce products are the next step in our journey of removing the barriers to entry to increase small business success,” says Putman.
Despite the challenges businesses face, the e-commerce opportunities for small businesses in South Africa remain significant. With the growth in internet penetration, the increasing popularity of online shopping and easy access to low-cost, user-friendly payment products, the stage is set for more businesses to take advantage of the e-commerce boom.
Find out more about iKhokha’s online payment solutions at https://www.ikhokha.com.
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