The ecommerce situation in South Africa has experienced a boom in recent years. The emerging businesses are paying more and more attention to brand loyalty and customer satisfaction. One of the most important factors in the user experience and an ecommerce business is the delivery process. The rise in digital convenience has led to the rise of two kinds of deliveries – Doorstep Delivery & Click & Collect. Through this article, we will try to understand the preference of South African consumers and trace their ecommerce behavior.
Doorstep Delivery and Click & Collect : Explained
As the name suggests, doorstep delivery is a traditional form of ecommerce where the goods and services are delivered directly to a consumer’s requested address. This model is preferred by those who prefer the utmost level of comfort and also want to save their time.
On the other hand, Click & Collect is a form of ecommerce where the consumers place their order online and they are required to pick it up from a collection point, designated location or a physical retail store. This is a feasible form of ecommerce as it eliminates the delivery fee, reduces the delivery time and also increases the flexibility when it comes to collecting your order.
Both of these models have their own set of challenges as well as benefits. Each South African consumer might prefer a different model, based on their individual needs.
Understanding The Ecommerce Landscape in South Africa
There is a clear demarcation between the preferences of people in rural, urban and semi-urban areas. According to market research, the following things have been observed in the consumer behavior:
1. Doorstep delivery is preferred in urban areas
When it comes to high-value orders like groceries, electronics, etc, people in urban areas lean towards doorstep delivery. This can be attributed to the fact that people in urban areas are always running low on time and they seldom have the opportunity to pick their deliveries. In cities like Cape Town, Johannesburg and Durban, people are even willing to pay a little extra amount to get a same-day delivery. They give utmost priority to the convenience of doorstep delivery.
2. There has been a rise in Click & Collect deliveries
For people who want to save on the delivery cost and those who want to ensure complete security of their orders, Click & Collect deliveries have gained momentum for them. It also helps in reducing the thefts and gives the customers the flexibility when it comes to picking up their orders. As there has been an increasing foot fall in the in-store pickups, it also gives the sellers the opportunity of cross-selling.
What Are Some Decision-Making Factors For Consumers?
The following factors can influence the consumer delivery choices:
Lifestyle patterns and choices
Families and homemakers would prefer the doorstep delivery model. On the other hand, working professionals might prefer the click & collect model as they can pick their orders after their working hours.
Challenges in infrastructure
Due to informal settlements, a lot of South African households do not have access to roads or street addresses. When it comes to these infrastructural limitations, Click & Collect can serve as a more viable option.
Delivery fee
A lot of consumers do not place their order online if it comes with a high delivery fee. In such cases, the Click & Collect model can help them in avoiding these extra charges.
Risk of theft
When it comes to the ecommerce business, orders might also be subject to thefts, delivery delays and poor transmission. All these factors can hamper the user experience. The Click & Collect model can help in reducing the reliance on third-parties to handle the logistics. The pick-up points can all be retailer-controlled, thereby ensuring a smoother delivery experience.
Which Model Is Preferred By Retailers?
For the South African retailers, both of these models are important in their own ways. Both of them cater to the different needs and preferences of the customers. In this way, they are able to ensure hyper-local and fast deliveries and it allows the consumers to shop from over 800+ stores across South Africa. With the diversification of the delivery options, the sellers have been able to reduce the last-minute delivery pressure and they have also been able to enhance the overall user experience. It has also been able to help them generate new revenue streams.
What Does The Future Look Like?
In the coming future, the South African economy will likely witness a hybrid model when it comes to delivery of ecommerce products. The consumers will have the liberty to decide the kind of delivery model they want for a specific ord
er. In the coming years, there will be a significant increase in the investments when it comes to rural access points, retail partnerships and smart lockers. There will be an integration of AI routing for doorstep delivery. The artificial intelligence will also be able to map the past behaviors and locations of the customers which will help them deliver personalized delivery options. Only those retailers who are able to offer control, transparency and varied choices to the customers, will be able to survive in the ecommerce market.
Conclusion: Which Model Is Preferred By South African Buyers?
In high-density and more developed areas, there has been an increase in consumers who prefer doorstep delivery. They are willing to pay a little extra for their lifestyle convenience. On the other hand, semi-urban areas prefer the Click & Collect model due to its practical and cost-effective aspect. The Click & Collect model is also suitable for areas which have security concerns and limitations when it comes to infrastructure.
Majorly, the consumer behavior remains dominated by personal choices, income, product type and the location of the customers. It remains the duty of the retailers to provide the customers with real-time tracking and an efficient logistics system which will help them in making an informed choice.
It is no longer about which delivery system surpasses the other, it is more about which system caters better to the dynamic ecommerce market of South Africa. In order to choose the best system for your business, you should get a better understanding of the customer behavior and geographical diversity and serve your customers accordingly.
