Major South African e-commerce players are noting a big increase in the number of people engaging in mobile commerce – but the platform still faces many challenges in terms of accessibility and payment.<\/p>\n
Speaking at the 2013 uAfrica eCommerce Conference in Sandton recently, panelists Jaco Jonker<\/a> (CEO of Bidorbuy<\/a>), Daniel Guasco<\/a> (CEO of Groupon SA<\/a>) and Liz Hillock<\/a> (Head of Marketing at Kalahari.com<\/a>) noted a significant uptake of customers making purchases through mobile means.<\/p>\n Jonker revealed that the Bidorbuy had seen 100% growth year-on-year in terms of mobile traffic to the site, but pointed out that average revenue per user (ARPU) still significantly trailed customers who bought through the web interface.<\/p>\n Jonker added that high-end mobile users were the bigger spenders – with iPhone users spending more money on the site than Android users, despite being fewer in number.<\/p>\n Hillock, speaking to Kalahari’com’s figures, said that, while the e-retailer had noted an increase in mobile users, there was still a significant gap between PC and tablet users, and mobile.<\/p>\n A survey conducted by Kalahari in June 2013, revealed that purchases made by customers accessing the site on tablets had seen “meteoric” growth of 70% year-on-year.<\/p>\n According to Hillock, Kalahari has invested over R1 million on opening and developing its mobile platforms.<\/p>\n The toughest challenges facing online retailers and the mobile drive have mainly to do with accessibility, navigation and payment, according to the panelists.<\/p>\n Currently, smartphones and apps make e-commerce most accessible to mobile users, but this does not speak to users who attempt to access transactions from older devices.<\/p>\n Key to overcoming the challenge is developing platforms that are easily navigated and accessed by a wider set of people – something which is increadibly difficult for retailers who offer a large variety of products.<\/p>\n According to Bidorbuy’s Jonker, offering limited products, or a subset of products isn’t really an option: “It’s like taking short-cuts, offering someone half a product,” he said.<\/p>\n “Rather make sure presentation is uniform and easier, help users filter and search for what they need – Do it properly or don’t do it at all.”<\/p>\n Another issue raised by the panel spoke to payments and payment options.<\/p>\n With transactional security enforced by Visa and MasterCard through mobile means (such as a One-Time PIN or OTP), following through with payments via mobile is extremely challenging, the panel said.<\/p>\n To illustrate the challenge, Jonker asked the 400 delegates attending the conference who remembered their Visa or MasterCard 3D Secure password – a handful raised their hand.<\/p>\n “Let’s just say 3D secure is a big hurdle for mobile commerce,” Jonker said.<\/p>\n Luke McKend<\/a>, country director for Google<\/a> South Africa, believes that payment mechanisms in South African commerce – both online, mobile and physical – need to become simpler and entirely digital.<\/p>\n The director pointed to NFC technology as well as digital wallets like Google Wallet and mPesa as a key driver for this change.<\/p>\n \u201cThe idea is to replace the card. The key is simplicity, to make sure you\u2019re only carrying one device for all your needs.\u201d<\/p>\n What\u2019s driving m-commerce in SA?<\/a><\/strong><\/p>\n The future of e-commerce in SA<\/a><\/strong><\/p>\n Kalahari.com ready for Amazon play<\/a><\/strong><\/p>\nChallenges of mobile<\/h3>\n
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