Smart selling in tough times: How online stores can save you money and grow your business
Opinion-editorial by Chris Wood, Managing Executive for Product at Absa Business Banking
South Africans aren’t spending like they used to.
Many are opting to cut down on luxuries to make every rand count as their cost-of-living continues to rise.
According to the recent consumer research – the BrandMapp 2025 report – people are going out less, cancelling their TV subscriptions, and reducing clothing budgets to save on costs, shifting priorities to the essentials.
Absa’s most recent Merchant Spend Analytics report spending insights data confirms this, but has also revealed that it’s not just what we’re buying that’s changing, but rather, how we buy.
Even though people are spending less, many are gravitating more towards online shopping when they do, while cash purchases are declining.
The use of digital storefronts and payments spiked throughout 2024, according to our Payments Acceptance data, with turnover going up 25% in the first quarter and rising steadily throughout the year, ending with a 12% increase in Q4.
Grocery shopping has become significantly more accessible with the introduction of new apps for all major retailers, with online grocery spending up 51% last year while in-store card spending remained static.
The data is indicating a shift to online platforms for day-to-day essentials.
But it’s not merely grocery apps that are booming, as many South Africans are making larger purchases online – especially around the holidays.
Average transaction values rose significantly in Q4, likely because of widespread sale events, such as Black Friday and Cyber Monday.
For special occasions – and treating themselves – people are looking online for the best deals.
This data outlines two important trends.
Firstly, South Africans are looking to save money wherever they can.
Second, that they are more trusting of new shopping platforms, digital payments, and are willing to make larger transactions online.
It’s a combination that heavily favours entrepreneurs looking to break into e-commerce, especially those wanting to help their fellow South Africans beat the disposable income crunch.
Much like brick-and-mortar retailers, there are numerous ways in which online stores can save money while building their business – and pass these savings onto their customers.
Firstly, a wider variety of storefronts means that its far easier to find the right deals, especially when comparing prices doesn’t require having to visit a physical store.
Consumer intelligence agency Nielsen IQ agrees: around 60% of South African consumers check different stores and online platforms to get the best balance of prices, deals, and options.
Meanwhile, around 31% are shopping online to secure better deals and save transport money.
E-commerce and digital payments have been repeatedly proven to benefit economies on the whole – especially in the Global South – where easier access to global markets can be the difference between a small and medium enterprise and a multi-national business.
For the budding entrepreneur, this all may sound daunting, but we’ve thankfully moved into an era where it’s becoming easier to set up a digital storefront than ever before.
As the Bank of the Entrepreneur, Absa alongside littlefish and Visa has recently launched a solution to empower businesses looking to reach new markets in this increasingly digital economy.
ShopRed is a comprehensive e-commerce platform that simplifies the digital administration of their online channels.
Traditional e-commerce systems often require multiple external tools and services to be effective, requiring businesses to integrate an online marketplace, a separate provider for payment solutions, and additional apps – and people – for inventory management.
That’s why we’ve designed ShopRed to consolidate all these services in one user-friendly platform.
For businesses without extensive technical resources, ShopRed offers the ability to showcase and sell products online through easy website creation and hosting, integrated payment options, access to markets, and advanced analytics tools to manage in-store and online inventory.
Essentially, the goal of any e-commerce platform is to help entrepreneurs build their businesses, especially those who operate without the overhead of a physical shop.
By incorporating as many cost-cutting measures and time-savers as possible through such platforms, the goal is to ensure business-owners can spend their precious resources on running a successful enterprise – not struggling through administrative work.
So, with a projected 21.5 million e-commerce users set to be registered in South Africa by 2029, the time is now for businesses of all sizes to get online.
And for those of us looking to save, our options are about to grow exponentially.
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