South African online shoppers prefer fashion, food in digital basket

Significant growth

Clothing and fashion led the way with 69.9%, followed by food and beverage with 63.8%. The category saw significant growth thanks to increased takeout and expanded online grocery shopping at major retailers nationwide.

“While online shopping has been a significant part of retail for many years, the landscape is constantly evolving,” says Otto Williams, SVP, Regional President and General Manager, Middle East and Africa, PayPal. “Advances in AI, changing economic conditions, and dynamic consumer expectations require business owners to stay on top of change, ideally staying ahead of the curve and at least adapting to ensure sustainable growth.”

The most noticeable and interesting trends have emerged in areas such as convenience, personalization, and information and assistance. Here are some key insights that separate fact from fiction and aim to improve business strategies to better meet customer needs:

Convenient online shopping is a combination of many factors. – Fact

Online shoppers are constantly multitasking. Only 12.6% of surveyed shoppers set aside time to shop online – most shoppers weave it into their daily lives, most often during moments of relaxation; 69.9% shop in the comfort of their bed at the end of the day, 60% at work or while working from home, and 58.4% while watching TV.

“How and where you shop provides important clues to a shopper’s state of mind. People who shop online during work hours are less tolerant of cumbersome checkout steps and may easily switch to a competitor if the search function doesn’t quickly deliver the results they need,” Williams notes.

Convenience correlates directly with the shopping experience. Quick search and filtering options were cited as the most important factor by 84.7%, while the ability to create a wish list and save it for later came in second place by 55.9% of respondents. Multiple payment options, guest check-out, and the ability to save payment information were also seen as useful by most respondents.

Customers see real value in using AI in customer service. – Fiction

Despite widespread adoption and the likelihood that web bots will become more precise and sophisticated, only 29.6% of respondents see value in using AI bots to handle customer service queries. Respondents showed a clear preference for the value AI provides in finding the best prices (71%) and tracking delivery updates (51.5%).

Buyers don’t know how to check if payment processing is secure. – Fiction

Nearly 95% of respondents say secure payment processing is the most useful security feature for online purchases, suggesting they know how to check whether a website and the payment methods it offers are safe.

There are basic rules for creating secure sites, such as checking for a padlock in the URL, but an extra layer of security is provided to shoppers by using trusted local and international payment platforms like PayPal.

“Secure payment processing is the first and most basic requirement for making an online purchase. However, the benefits of choosing the right payment option are numerous,” Williams says. PayPal offers protection to both the seller and the buyer—a valuable benefit in an era where fraud is rampant.

Customers find delivery times, shipping costs, and returns and refunds to be obstacles. – Fact

Almost 60% of respondents said that shipping costs are a barrier they face when shopping online. Shipping charges and prices should be carefully considered, and delivery times should always be within the time frame provided and as easy as possible. The ability to offer free shipping depends on various factors, including product type, price sensitivity and the competitive landscape. It is important to note that shipping can be used both as a promotional tool if indicated separately, and free when certain criteria are met, as it can increase the perceived value. Including shipping charges in prices reduces the retailer’s flexibility to adjust based on weight and distance to the delivery location.

Buyers read reviews, but they don’t influence their decision-making. – Fiction

A full 90.1% of respondents indicated that a low star rating or negative reviews would discourage them from making a purchase. Reviews and ratings are also seen as the most useful information and help features on a website or app.

Negative reviews can be turned around, and because they have such a large impact on decision-making, in-store customer service teams should make an extra effort to respond directly to negative reviews. Reviews should take into account customer sentiment and aim to find a solution.

As businesses strive to meet the needs of online shoppers, the value of collecting customer feedback and working with service providers like your payment provider to gain insights should never be underestimated. Running your own surveys or using feedback in your customer service channels to influence decision-making can provide tremendous value and help your business stay ahead of the competition and adapt to changing customer needs in a dynamic retail landscape.