Answers to the most frequently asked eCommerce questions
Discover essential answers to the most commonly asked questions about eCommerce in South Africa. This eCommerce FAQ page offers valuable insights and practical information to help you navigate the world of online business and eCommerce, from payment gateways to product tips to shipping options and more.
Payments
How to take credit card payments on an online store?
Selling online in South Africa? Wondering about accepting credit card transactions on your eCommerce website? It's easier than ever with payment gateways like Yoco, PayGate and PayFast. Register an account, get the details within 24 hours, input them on your website, and start selling.
Do customers trust shopping online in SA?
As online sellers, our primary goal is to provide customers with a fantastic experience that encourages repeat purchases. Takealot might receive criticism, but they play a vital role in helping customers make their first online transaction while ensuring a positive experience. This fosters loyalty, leading customers to return to shop online, not just with Takealot but other sellers too. South Africa's online shopping statistics show significant growth with a 25% year-on-year increase in online sales, indicating rising consumer trust in eCommerce.
Start selling online without a Business Bank Account
Don't let admin tasks hinder your entrepreneurial spirit. You can start selling online immediately without a business bank account. Set up a website, take payments via EFT into your personal bank account, or use payment gateways like PayFast. Test your business case and market demand. When ready to grow, switch to a business bank account. Start selling online now and seize the opportunity!
Why 3D Secure is a GOOD THING for Online Sellers
In March 2014, when 3D Secure became mandatory in South Africa, many eCommerce businesses, including myself, were initially against it due to lost sales and customer confusion. However, over time, I've come to love it for the added security and consumer trust it brings to online shopping. With the one-time-pin system, credit card fraud has decreased significantly. Despite some seeing it as negative, 3D Secure has actually helped grow eCommerce in South Africa.
Can online shoppers pay by Zapper & SnapScan?
Zapper and Snapscan have gained popularity all over South Africa for various payments. As online sellers, you can offer these options on your website too. Integrating them into popular platforms like Shopify, Magento, or WordPress is simple. Customers love the convenience of using their phones instead of credit cards. Contact Zapper or Snapscan for guidance on integration.
Can online shoppers pay by BitCoin?
Enabling Bitcoin payments is simple through the PayFast payment gateway. Just log into your admin panel, enable Bitcoin payment, and the process is straightforward. When a customer pays in Bitcoin, PayFast handles the transaction and pays you the equivalent amount in your currency. Offering Bitcoin payments on your website is an easy and effective option.
Which SA payment gateways can I use?
When selling online, choosing the right payment gateway for secure transactions on your website is essential. In South Africa, there are various options, but the Insaka eCommerce Community poll showed that most SMME and startup eCommerce businesses prefer PayFast (1st place with an impressive 77%) and PayGate (2nd place). Join the free Insaka eCommerce Community on Facebook for valuable insights. Opting for PayFast or PayGate as your payment gateway will ensure smooth and secure transactions on your site.
How to battle online fraud?
Don't let the fear of online fraud deter you from selling online in South Africa. In the past, credit card fraud was a concern, but with the introduction of 3D Secure and one-time-pins, such incidents significantly reduced across the industry. However, be cautious with EFT payments, especially if customers urge you to process their urgent PDF EFTs. This could be a potential red flag for fraud. Stay vigilant and verify such orders to ensure a secure selling experience.
LOGISTICS
Don’t use the SA Postal Service to deliver online orders
When setting up your online business, consider reliable product delivery options. While the South African postal service may seem like a choice, it's not recommended due to lost parcels and long queues. Fortunately, numerous courier companies work with eCommerce entrepreneurs for efficient door-to-door deliveries. Surprisingly, nationwide delivery can cost as little as R34. With various service options available, product delivery is not a hurdle and can be done affordably, ensuring a smooth customer experience.
Do I need to offer free delivery on online orders?
Providing free delivery is an expectation among online customers in South Africa. It is usually offered for orders over R500, but major players can negotiate better rates due to higher volumes. Conversely, some websites set higher minimums to maintain profit margins despite potential conversion rate impact. Analyse your average dispatch value and margin per sale to ensure free delivery doesn't harm profitability. Avoid following others blindly; make a calculated decision to meet customer expectations while remaining profitable.
What if the courier damages my customers parcel?
Over 12 years, I've sent 100,000+ customer orders via courier. Initially insured every parcel but no claims surfaced, making it expensive. So, I self-insured, saving tens of thousands of Rands. Though we faced losses from theft, damage, floods, and hijackings, it was still cost-effective. My advice: partner with a reputable courier and carefully analyse whether to opt for insurance or self-insure.
Outlying areas - how to deliver online orders cheaply?
Orders from major cities are cost-effective due to numerous couriers serving those areas. Remote areas may have high delivery costs. Research suitable couriers and consider Fastway for small parcels at R34 to far-off locations. Be mindful of delivery costs to manage effectively.
No one’s home when the courier delivers… What then?
Timely delivery is vital for excellent customer service in online selling. If a customer is unavailable, the courier will attempt delivery again the next day. After two unsuccessful attempts, they'll ask you to arrange an alternative plan with the customer. You can also add delivery instructions before dispatching the parcel. So, don't be discouraged by the idea of failed deliveries when starting your online store.
Cheapest courier to deliver online orders?
Fast delivery is crucial for a positive customer experience, but it shouldn't compromise profit. The best and cheapest courier partner in South Africa depends on your location and your customers' locations. You may need to use different couriers for various orders. After 12 years in eCommerce, the cheapest and most reputable partners I've found are PUDO, Fastway, Postnet-to-Postnet, and Pargo. Start with these four and research other courier partners in your area to make the best choice for your business.
Dispatching online orders made easy
Streamline your eCommerce order process with Bob Go (formerly uAfrica). Their system integrates easily with platforms like WordPress and Shopify. It replicates customer orders, and couriers bid in real time to offer their lowest bids. Just click the lowest bid, print the waybill, and the courier will arrive that afternoon. Say goodbye to manual booking and handwriting waybills, saving you time and avoiding errors. With Bob Go, managing eCommerce orders becomes a breeze!
PRODUCTS
Will my product sell online?
If unsure about your product's online interest or demand, use Google Keyword Planner. Input your product name to see the number of people in South Africa searching for it. Create a free Google Adwords account to access the tool without running ads. This helps you gauge the potential customer base and estimate the number of people likely to buy your product.
How to sell products online?
Looking to sell online? Here are three ways to get started. First, create your website, either by building it yourself or hiring a development company. Second, opt for wholesale agreements with established online retailers to reach their customer base. Third, list your products on marketplaces like Takealot, Bob Shop (formerly BidorBuy), Makro, and more, accessing a vast customer database. Start selling your product online now with these options.
How to find trending products to sell online?
To boost your online sales, consider finding hot and trending products overseas and be among the first to sell them in South Africa. Utilise websites like Trend Hunter, Jungle Scout, and Google Trends for trending product ideas. Check the biggest eCommerce retailers in America and Europe to see their product announcements and launches. Explore Amazon's Best Sellers section and check if those products are available in South Africa. Seize the opportunity to capitalise on trending products and set up a successful online store.
Finding reliable suppliers on Alibaba
To buy products from the East, being on Alibaba is a great start as it connects suppliers from the East to buyers in the West. However, trustworthiness is crucial. To ensure a reliable supplier, deal only with those on Alibaba who have Trade Assurance. This is Alibaba's guarantee that if the supplier fails to deliver on time or with good quality, Alibaba will refund your money. With Trade Assurance, you can confidently place overseas orders and sell products online without worries.
The best way to buy products from Chinese suppliers
Sourcing products from the East is now more accessible and less daunting than before. Traveling there is no longer necessary. Alibaba.com allows you to find products, connect with suppliers, and place orders online. My top tip is to choose suppliers with Trade Assurance on Alibaba. This ensures that if products don't arrive on time or the quality is unsatisfactory, Alibaba will refund your money. It's a convenient and secure way to source products from the East.
Convincing local suppliers to supply you
If you're struggling to connect with South African suppliers, stand out by visiting their office, requesting a meeting with the relevant person, and discussing a win-win relationship. Ask to see the dealer agreement to establish credibility, and consider a sizeable opening order to initiate a strong relationship. This process has proven effective for me and can work for you too.
How to reduce customer returns?
To avoid returns in eCommerce, ensure clear product descriptions and detailed images, as many returns occur due to receiving items different from expectations. Poor descriptions and vague images cause confusion. Provide comprehensive information so customers know exactly what they're ordering, reducing returns and enhancing their experience.
IMPORTING
What import duties do I pay on imports?
To determine import duties, obtain the breakdown per product from SARS or search the Insaka website for "import duties." You'll also need the HS Tariff Code, which your supplier can provide. Match the code to the product in the SARS PDF to find the applicable duties, ranging from 0% to 45%. Knowing your import duties beforehand is essential before importing products to ensure a smooth process.
Do I need an import license to import products?
Want to import products into SA but unsure about the process? Good news! You can start without an official import license. SARS allows up to four imports, max value R50k/year. Use temporary code 7070707070 as your license. Test the market and decide to continue. For more imports at higher values, apply for an import license at your local SARS office. It's free and efficient, with a turnaround time of no more than 2 weeks. Start importing with ease!
How do I apply for an import license?
Avoid falling for expensive registration services, as getting your import license is easy and free. Simply fill out the paperwork, submit it at your local SARS office, and wait for two weeks. No need for a registered company; you can even register in your personal name. It's easier than you might think! For import license documents and a free mini-course on importing, check out our Free Resources page.
Quality control for imported products
When dealing with new international suppliers, protect your business by following these three suggestions. First, hire a quality controller at the supplier's location to inspect the stock before shipment. Second, modify the contract to pay 50% upfront and the rest after confirming the stock's quality. Third, opt for suppliers on Alibaba with Trade Assurance, ensuring Alibaba refunds you if the quality isn't as promised. Securing your business in the long term is crucial, avoiding potential losses from large upfront orders of subpar stock.
DROP SHIPPING
Does Oberlo work in SA?
Oberlo is a fantastic dropshipping app for Shopify, enabling store owners to list and sell products without upfront inventory investment. However, its efficiency in SA is questionable due to reliance on the local postal service. While it theoretically works, the handover to the South African Post Office can result in delivery uncertainties, making it a deal breaker for some. Despite the current challenges, improvements in the system might offer better solutions in the future.
Drop Shipping from AliExpress to SA customers
South African entrepreneurs face challenges in dropshipping from AliExpress due to unreliable postal service and expensive courier options. In the meantime, a new solution called Airpool has emerged. With Airpool, South African dropshippers can send orders to a centralised hub in China and utilise bulk-courier services twice a week for faster and cost-effective deliveries to customers within 10 days.
Drop Shipping in SA - The Biggest Challenge
Setting up dropshipping businesses in South Africa can be challenging due to a crucial factor often overlooked – our price fixing laws. Unlike in the US, South African wholesalers cannot legally dictate the retail price of their products. This becomes a significant obstacle for dropshippers as wholesalers are hesitant to partner with them, fearing price manipulation that may strain their relationships with established retail partners. While dropshipping is possible in South Africa, navigating the complexities of price control regulations requires careful consideration and adaptation to foster successful partnerships.
WEBSITES
Which website platforms can I build my online store on?
When starting an online store, choosing the right Content Management System (CMS) is crucial. With various options available, it can be overwhelming to decide. To simplify the process, consider platforms that support South African integrations, offer excellent support, and are user-friendly. After over 12 years of selling online in South Africa, I recommend narrowing your choices to either Shopify or WordPress. Conduct thorough research on these two, and make an informed decision based on your specific needs.
Is your website SSL Secured? Don’t lose online sales
Having an SSL secure website is crucial for customer trust. Check your domain – if it starts with "HTTPS," you're secure; "HTTP" without the "S" means you're not. Shopify and WIX platforms have built-in SSL. For WordPress, use the free plugin "Real Simple SSL" or consider GeoTrust for added security and a trust badge. Ensuring SSL on your site builds customer confidence, encouraging successful transactions.
Do I need a website developer?
Website platforms like SquareSpace, WIX, and Shopify have made website building easier, even for those with limited experience. While it may not be as perfect as an expensive, professionally developed site, it allows you to test the market and get your products out there. As you grow, you can invest in a developer later if that's your requirement. Don't hesitate to try building your site yourself and take advantage of these user-friendly platforms.
What does it cost to build an online store?
Website developers may quote around R20,000 for a starter website, but costs can go much higher with additional features. However, you can build your site for free using user-friendly platforms like Shopify, WordPress, SquareSpace and WIX. Don't be intimidated even if you lack coding experience; these platforms make it accessible to all. Save your budget for marketing once your site is live to drive sales. Give it a try yourself and see how easy and cost-effective it can be!
What fees are there for starting an online store?
When starting an online store, you need to consider fixed costs like the URL purchase (around R79/year) and hosting (about R99/month). For the website platform, WordPress is free, while Shopify costs $19/month. Variable costs may include increased shipping expenses due to more orders. If you hire a development company, costs will vary. Be prepared for these costs when budgeting for your online store.
How to buy a website URL?
When starting an online store, you'll need to buy your domain name (URL). Check its availability on Google or through a hosting company like Xneelo, which I recommend. You can secure a name for as little as R79/year. Don't delay, start building your online store now.
Who to use for website hosting in SA?
Website hosting can be daunting, but finding the right partner is key. I recommend Xneelo, a local provider known for excellent customer support. They offer 24/7 assistance, which is crucial when you encounter issues. With Xneelo, you can buy your URL and host your site, simplifying the process. Local hosting also ensures better website speed compared to international options. So, check out Xneelo for reliable and accessible hosting, leaving you free to focus on building your site.
Can I use a free website theme?
Website themes serve as templates to establish your site's layout. While customising the styling to match your brand, they provide the foundation for your site. When building on platforms like Wordpress or Shopify, you can choose between paid and free themes. Paid themes offer extra functionality and support, but I've achieved success using free themes alone, with some of my sites earning over a million Rand a month. Additional functionality can be found in app or plugin stores. So, free themes are sufficient for building a successful online store.
3 tips to optimize your website for sales
To boost website sales, prioritise increasing traffic and optimising conversion rate. Fine-tune three areas: user-friendly website navigation, detailed product pages with images, and a smooth checkout process. Put customers first for a seamless shopping experience. Keep analysing and refining to continually improve sales. Remember, it's an ongoing process.
What should be in your website footer?
Include essential information in the footer of your website to build trust with customers. Key pages to add are shipping policy, returns policy, privacy policy, T's & C's, secure payment info, About Us, and Contact Us. Display payment option logos for credibility. The About Us page is especially crucial as it influences customer trust before making a purchase. Make sure the footer is easily accessible and informative for a positive customer experience.
MARKETING
A quick way to increase SEO ranking for your website
Boost your website's SEO by registering your business on Google Business. Visit www.google.co.za/business to apply and register. This places your business on the map and creates a knowledge panel with images, map, opening hours, contact details, and customer reviews. It also adds you to Google Maps, improving your SEO ranking. Take this simple step to enhance your online visibility and climb up the search rankings.
3 Tips to increase your free website traffic
Boost website traffic with these free tips:
- Write guest blogs on other websites to promote your brand and drive traffic through backlinks.
- Engage actively on social media, responding to comments and dropping links where relevant to attract followers.
- Create keyword-rich evergreen content for your website, driving continuous traffic over time.
Implementing these strategies will help increase website visits without relying solely on paid advertising.
Why you need to be using Facebook Ads
Leveraging Facebook's extensive user profiling and sophisticated algorithms offers a remarkable marketing opportunity. By understanding your target audience, engaging with them effectively on Facebook, and using machine learning to discover similar lookalike audiences, you can boost your reach and conversions. Remarketing allows you to re-engage potential customers who have visited your site. While learning Facebook ads may seem intimidating, the potential return on investment makes it worthwhile. Consider mastering this powerful tool yourself or entrust it to a digital agency for sales growth. Embrace Facebook ads and watch your online store thrive.
How to get better results from Google Adwords
When managing your own Google AdWords campaign, you might notice your budget depleting quickly due to competitive bidding on popular keywords. To extend your budget's lifespan, focus on bidding on long tail keywords—phrases centred around your target keyword. For example, instead of bidding on "GoPro," try "Buy GoPro Hero 7 in Durban." Long tail keywords are often cheaper per click and can attract more qualified leads, as searchers using specific phrases are closer to making a purchase decision. By utilising long tail keywords, you can maximise your budget and potentially improve conversion rates.
Why you must install Google Analytics into your website
If you haven't linked your website to Google Analytics yet, I highly recommend doing so. It's a free and easy-to-use tool that provides valuable information through user-friendly reports. Even if you don't plan to use the reports immediately, installing it will start gathering historical data for future analysis. Delaying installation means missing out on valuable insights that could influence important decisions for your business. So, prioritise setting up Google Analytics and ensure you have access to data that can help you make informed decisions and improve your online performance.
Why you must install a Facebook Pixel into your website
A Facebook Pixel is like a tracking cookie that monitors users on your site. It serves several functions: you can advertise to site visitors when they're on Facebook, track clicks on your Facebook campaigns, and analyze the sales cycle on your site. By identifying users who convert, you can target similar audiences based on Facebook's profiling. Despite privacy concerns, from a marketing perspective, it's a valuable tool. Even if you're unsure about it, I recommend installing the Facebook Pixel on your site. It will gather data you can use when you decide to start advertising in the future.
Don’t lose sales from abandoned carts
Abandoned carts happen when somebody comes to your online store, adds something to their shopping cart, begins the checkout process and adds their details but then doesn’t pay. Now unlike physical shops who don’t know who the customer was and they can’t follow them up we have their contact details and this becomes a great opportunity for us to increase our sales. Because a simple automated follow up abandoned cart email can convert up to 7% of those potentially lost sales. And if you’re a little bit more savvy then you can convert up to 15% of those would-be lost sales. So this really is a key opportunity to increase your sales and you shouldn’t miss out on it.
How many email newsletters is too many?
When I asked Manuel Koser from Zando about newsletter frequency, he mentioned how big companies send multiple newsletters each week. However, the right amount of newsletters depends on your content and database. If you send too many with repetitive content, users will stop opening them. It's about finding a balance between fresh content and the number of products you have, keeping each newsletter unique and engaging for your audience. Avoid following a fixed number and focus on delivering value to your subscribers. Quality over quantity matters in building a successful email marketing strategy.
MARKETPLACES
How to start selling on Takealot?
Want to list your products on Takelot.com? Utilise their marketplace to reach millions of customers. Register through the "Sell on Takealot" option in the website footer. You'll sell directly to their customers, and they'll take a commission, but it's a strategic move to boost sales and gain exposure. Take advantage of this opportunity to promote your products and access a broader audience without the hassle of setting up your own e-commerce site. Start selling on Takealot today!
Can you afford to sell on Takealot?
Selling on Takealot Marketplace boosts product exposure and sales, but consider the 5 costs for profitability. The flat account fee is R300/month. Success fee varies from 4% to 15%. Fulfilment fee is R30 (small) to R500 (big). Warehousing fee applies to excess stock at R3 (small) to R150 (big) per item. Don't forget VAT in your calculations for profitability.
GENERAL
"SA customers don't trust online shopping"???
At an eCommerce conference, someone expressed surprise that I was presenting on eCommerce, claiming South Africans don't trust online shopping. However, stats show online sales have grown by 25% annually. Last year's online sales were R14 billion, and predictions suggest it will reach R60 billion by 2025. I've built websites generating over a million Rand a month, confirming the growing market. So, if you're not in eCommerce yet, you should seriously consider it. The market is expanding rapidly, and there's great potential for growth and success.
Join me for eCommerce Events Around SA
As the eCommerce market continues to grow in South Africa and as everyone wants to learn more there are so many events happening around the country like the Meetup I’m at right now where people are coming together to network, to meet one another and to learn more about eCommerce. If you are interested conferences, expos, meetups and anything happening around SA where you can learn more about eCommerce then be sure to like my page and then you can come and join me at events like this on the rooftop of Yoco in Cape Town with a room full of entrepreneurs who are getting ready to learn about eCommerce right now.