Shoprite has ventured into the realm of eCommerce with the launch of a new online shopping and delivery service tailored for small businesses, including spaza and tuck shops, in South Africa. This initiative marks the entry of Shoprite-owned Cash & Carry, traditionally a wholesaler, into the digital marketplace.
The service enables customers to explore and order a broad selection of products at competitive prices via an automated online system. Moreover, it offers the added benefit of free delivery for locations within a 50km radius.
Spaza shops and smaller retailers often grapple with various operational hurdles, such as the high costs of transportation and fuel, difficulties in keeping up with demand in the informal sector, the financial burden of overstocking, increased risks of theft, and cash flow constraints.
To address these issues and enhance user convenience, Shoprite provides multiple payment methods, both online and in-store. These include credit and debit cards, electronic funds transfer (EFT), store credit, cash on collection, and the Shoprite Money Market Account.
Mark Cotton, the Head of B2B eCommerce for Shoprite, highlighted the benefits of the new digital platform for Cash & Carry. He emphasized that it offers reliable stock visibility and delivery services, which help businesses avoid overstocking, improve cash flow, and allow business owners to dedicate more time to customer service and business expansion.
Cotton further explained that the revamped system streamlines the purchasing and order fulfillment process for in-store traders at Cash & Carry. It allows them to log in, access customer and product information, and efficiently manage and finalize orders, with the option to save orders for future completion.
In August 2021, the Shoprite Group introduced ShopriteX, a digital business hub that merges data science, technology, and innovation with the company’s operational strengths to enhance customer experiences. This move is part of the Group’s strategic plan to expand its ecosystem of services for consumers and to capitalize on new and varied revenue opportunities.
According to projections from Statista’s Digital Market Outlook, the number of eCommerce users in South Africa is expected to reach approximately 11.7 million by 2025, with a significant rise to 21.52 million by 2029. This trend indicates a robust expansion within South Africa’s eCommerce sector, which is currently experiencing rapid growth. The market is anticipated to grow at a compound annual growth rate (CAGR) of 12.5% from 2022 to 2027.
Such growth is set to heighten the competitive landscape of the South African eCommerce market, which already features major players like Amazon and Takealot. The increasing number of users and the market’s growth potential are likely to attract more competitors and could lead to more diverse and improved online shopping options for consumers.
