Omnichannel shopping is unlocking new growth avenues for South Africa retailers
While South Africa's online retail sales accounted for just 6% of total retail sales in 2023, the figure remains significantly lower than markets like the United States (16.2%) and the United Kingdom (26.2%).
If we are to harness South Africa's digital economy to boost GDP, then retailers will need to remain relevant with increasingly connected shoppers. This is where omnichannel shopping becomes important.
Omnichannel shopping is not just about selling both online and in-store. Rather, it is about ensuring that consumers experience a seamless, integrated journey whether they are browsing on an app, researching on a desktop, or visiting a physical store.
Payment flexibility a key driver
On Black Friday, 55.2% of PayJustNow's Buy Now Pay Later (BNPL) transactions happened in-store, while 44.8% occurred online. The split highlights that local consumers are not purely shifting online but expect both options to be readily available.
Customers want options beyond traditional credit and debit cards. Options like BNPL are playing a critical role in enabling access to goods and services while helping retailers increase conversion rates and average basket sizes.
But this extends beyond consumer convenience. Retailers often gain valuable insights by integrating with alternative payment platforms that offer analytics not available through traditional payment methods.
Understanding customer behaviour is critical in driving business efficiency in today's environment, and this goes beyond just understanding transaction locations.
The integration challenge
One of the biggest obstacles to omnichannel adoption is the complexity of integrating various payment methods into both online and in-store systems. A year ago, retailers had to navigate a fragmented landscape of payment service providers, many of whom controlled merchant settlements and data.
Today, that is shifting. More payment service providers (PSPs) are recognising the need for retailers to own their consumer relationships directly, making it easier for brands to integrate new payment options across multiple channels.
For example, Retailability, which houses retail brands including Edgars, Legit, Beaver Canoe, Swagga, Style, Keedo and Boardmans, has successfully implemented an omnichannel strategy that is seeing their stable achieve an average of over 90% growth YOY in transaction value during peak shopping periods.
And that's through online and instore purchases with PayJustNow's payment platform alone, supported by exclusive offers on our Deals platform, and exposure on our app and website store directory.
The key is giving their customers a choice of how and where they shop, on their terms – thereby increasing customer engagement and transaction value.
What is in store for local retail?
While South Africa's retail landscape may not mirror the rapid e-commerce dominance seen in Western markets, there is a clear shift toward more integrated shopping experiences. Consumers still enjoy in-person shopping, but they also want the ability to browse deals online, make easy returns, and pay in a way that suits their financial needs.
Whether retailers choose to integrate with PSPs or directly with payment platforms like PayJustNow, they'll need to ensure that, sooner rather than later, their customers have access to a frictionless omnichannel shopping experience.
As Gen Z consumers enter their prime spending years, these expectations will only grow stronger.
Retailers that embrace omnichannel shopping now will be best positioned to thrive in the evolving local market by offering consumers convenience, security, and choice wherever and however they choose to shop.
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
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