SOUTH AFRICA – Shoprite, Africa’s largest supermarket retailer, has launched an online bulk shopping and delivery service platform for small businesses, including informal stores like spaza shops.
The company’s first move into e-commerce in the wholesaler space, which is gearing up for significant, sustained growth.
Shoprite said that the platform was launched because spaza shops, informal convenience stores usually run from home, and smaller retail businesses often face significant obstacles, which include high transportation and fuel costs and difficulties in meeting demand within the informal sector.
“Bulk-buying customers can now browse and purchase a wide range of goods at highly competitive prices through a fully automated online shopping system, with free delivery within a 50km radius,” the retailer explained.
Shoprite Group’s head of B2B eCommerce, Mark Cotton, claimed that the digital platform provides customers with reliable and visible stock access and delivery services.
This will eliminate the need to store excess inventory, frees up much-needed cash flow, and gives business owners more time on the shop floor to focus on their customers and business growth.
He added that the digital platform streamlines the purchasing and fulfilment process for Cash & Carry’s in-store traders, allowing them to log in, access customer and product information, and build and fulfil orders more efficiently.
“Orders can be saved for future use, making the entire process more user-friendly,” Cotton underscored, adding that the digital platform offers multiple online and in-store payment options.
They include credit and debit cards, EFT, store credit, cash upon collection and Shoprite’s Money Market Account.
The Shoprite digital platform will compete with local retailers like Amazon, Makro and e-commerce players like Naspers-owned Takealot, which also sells a wide range of bulk items.
A report by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Afrika – which revealed significant growth in SA’s e-commerce market in 2023, found that online retail grew 29% over the past year, positioning the sector to break the R100 billion (US$5.4 billion) mark by 2026.
McKinsey also predicts online spending in Africa may reach $75 billion by 2025, as digital payments spread through developing economies.
What distinguishes Africa is how fast the continent is embracing mobile connectivity. The International Trade Association reports that Africa’s mobile internet usage is 13% above the global average.
Market analyst advice E-tailers that they should prioritize apps and mobile-friendly algorithms that make it easier to buy and sell on mobile. When users find a product that interests them, they want to make a purchase quickly and seamlessly using just their mobile.
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