South africa Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in south africa, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Assessment of Current Buyer Behavior in Market

South African online sales increased by 66% from 2019 to 2020 to more than $1.8 billion (ZAR30 billion). The top e-Commerce product category in South Africa behind data and airtime is clothing and apparel followed by online entertainment. Groceries saw an increase of 54 percent from 2019, driven by the pandemic and lockdown restrictions.  There is also growth in most food delivery platforms from both grocery and fast food/convenience. UberEATS is available in South Africa and competes with the local platform called Mr Delivery.  Consumers are price sensitive favoring online promotions and coupons.  South Africans are spending more time online researching better prices and seeking product recommendations on social media.  

Local eCommerce Sales & Regulations

The Electronic Communications and Transactions Act 2002 (“ECTA”) is the main legislation regulating eCommerce in South Africa. This Act regulates electronic communications and transactions including consumer protection and cybercrimes. Ecommerce businesses must also comply with the Protection of Personal Information Act (POPIA).

Cross-Border E-Commerce

South Africans purchase mostly from South African websites or online marketplaces, but 27 percent purchase from the United States, and 14 percent from Europe. The U.S. version of Amazon.com is the third most visited e-commerce website in South Africa. If a South African imports goods in excess of Rand 10,000 or more than three times a year they will have to get an importers code, irrespective if it is for personal or business use.

Online Payment

Credit card and debit cards are the most preferred payment methods. Consumers also use e-wallet services and EFT for online payment. Due to the growth of credit card fraud, the Payment Association of South Africa mandated the use of 3D Secure in 2014. Merchants have reported that increased flexibility in the application of 3D Secure to online transactions in recent years has reduced cart abandonment by consumers. Currently around 71 percent of potential customers abandon their carts because of payment gateway failure.   

Mobile E-Commerce

Cell phones have largely replaced wallets, as banks, card operators, retailers and communications companies provide alternatives to cash as a means of payment.  M-commerce, where cell phones are used to pay for goods and services, has advanced beyond mobile banking to debit and credit transactions.  M-commerce is particularly attractive in South Africa due to the rapid increase in the number of smart phones, and poor fixed-line infrastructure. This provides an immense opportunity for online retailers, as mobile spending is projected to increase. Companies need to include mobile optimization in their ecommerce offerings to increase the buying experience.

Major Buying Holidays

International online sale days such as Black Friday and Cyber Monday are popular in South Africa and offer opportunities for retailers to reach more customers. In 2020, Black Friday online sales increased by 50% compared to 2019 and 66 percent of those purchases were made via mobile devices.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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