South African online retailers, such as Kalahari.net and Loot.co.za, are following the international trend of becoming Internet general dealers, selling a range of products rather than sticking to the original plan of selling books and music.
Kalahari.net, part of the Naspers Group of companies, this week began selling jewellery from its store, adding to its range of books, DVDs, and electronic goods already offered for sale.
Gary Hadfield, CEO of Kalahari.net, says: "Globally, several 'e-tailers` have launched jewellery offerings. This is the first time Kalahari.net is embracing a true fashion item that is outside our core product range and we have spent a lot of time investigating and getting the correct supply chain in place."
Hadfield says the move by Kalahari.net to expand outside its core offering is part of a strategy to find adjacent offerings that appeal to their clients and that they are only offered once the supply chain is properly secured.
He says more than 50% of Kalahari.net`s customers are women, but men use the site for convenience shopping as well. The jewellery on sale is from the country`s largest manufacturer, OroAfrica, which is partly owned by mining group AngloGold.
The possibility of food sales is also being considered as an offering by Kalahari.net and Hadfield says it would depend on securing the right partner.
Michael van Rooyen, MD of rival online shopping portal, Loot.co.za, says the general dealer model is becoming more common with retailers who use the Internet as their main, if not only, outlet.
"There is a trend to offer more and more goods, however, there will always be a place for the niche retailers, but those will generally have a physical retail front as well. It is also a matter of convenience as customers become more comfortable with our service, so they want more offerings," he says.
Both retailers say more and more business is coming from existing and new customers, with the later category growing monthly, but neither gave numbers.
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