How South African retailers can compete with global giants and meet consumer demands
There is little question that Chinese-linked e-commerce platforms like Shein and Temu have found favour among South African consumers.
Marketing Research Foundation‘s marketing survey group has found that Shein holds a 35% market share in the country’s women’s clothing sector. At the same time, Temu is the most downloaded retail app among South African smartphone users.
The arrival of these platforms has put tremendous pressure on local sellers to remain competitive, particularly during super-discount periods like Black Friday.
With Amazon also establishing its footprint in South Africa this year, South African retailers know they are fighting to stay relevant in an increasingly crowded space populated by big players able to offer competitive pricing driven by economies of scale and direct shipping.
However, according to Bob Group head of marketplace Craig Lubbe, South African retailers have the advantage of understanding the local market better than any new entrants. “Their specific product niche is also a potential advantage when competing with other major platforms.”
In the head-to-head analysis, South African e-commerce businesses can offer faster and more efficient delivery services than Shein, where international shipping times can take weeks.
Local retailers also appreciate that South Africans value individual-focused customer service, given their thorough understanding of the market. “Personalised, responsive customer support is a powerful differentiator. Retailers can use direct channels like WhatsApp or online customer chats to provide excellent service,” Lubbe says.
“South African businesses can also offer flexible returns and warranties, whereas buyers are often concerned about returning items to international sellers. Offering easy return options can reassure local customers.”
The e-commerce giants have an edge because they are well-resourced and equipped with powerful digital tools and infrastructure to satisfy millions of orders.
Conversely, small and mid-sized retailers on Black Friday may struggle to predict demand accurately and retain the right stock. For this reason, Lubbe suggests sellers diversify their offering to limit stock shortages across their assortment.
He adds that tracking current and previous years’ sales data can help forecast high-demand items.
“Capacity planning should also be well before an event like Black Friday. Our platforms – Bob Shop, Bob Go, Bob Box, Bob Pay and Ship Logic – are well prepared for use at scale to minimise the risk of downtime.
“Our marketplace offers retailers a pre-built infrastructure with secure payment options, a large customer base and marketing support. These are especially valuable for businesses lacking extensive tech or logistics capabilities. Our sellers can list products without managing their website or payment processing systems.”
The platform also provides seller support, analytics tools and promotional features that can help retailers reach a broader audience. Furthermore, sellers facing logistical challenges may benefit from its integrated delivery solutions and partnerships with trusted courier services.
Lubbe always encourages merchants to use services such as Bob Go and Bob Box, which offer fair pricing for various delivery options and an efficient order-management flow when fulfilling orders.
“The key is to sign up well before Black Friday to test such delivery platforms.”
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