Bidorbuy and uAfrica amalgamated Bob Group shares practical tips on how businesses can scale up quickly and affordably.
‘It’s a little like the proverb about planting a tree – the best time to launch an online business is yesterday; the next best time is now.’ That is the message from Bob Group’s Head of marketplace, Craig Lubbe, to South Africa’s small and medium enterprises (SMEs).
According to McKinsey & Company, 98% of businesses in South Africa are SMEs, contributing some 39% of the country’s gross domestic product – a contribution that is expected to increase in the next few years.
SME growth has become a major focus for Bob Group. Lubbe said while SMEs play a vital role in the economy, they are not without their challenges, including the high costs of running a business, excessive red tape, interruptions to the power supply and limited access to finance and skills training. However, the online retail space is helping SMEs overcome these obstacles.
In the 2022 Competition Commission report, it recognises that e-commerce enables businesses to retain and grow their market share as so many South Africans are now shopping online. A study released by Deloitte earlier this year shows 70% of the population now buys goods via digital channels.
E-commerce also allows SMEs to access a far wider customer base. In fact, going online allows businesses to compete with retailers that have a national store footprint ‘without requiring the same level of investment and risk-taking’.
‘The costs of operating physical stores can be mitigated when they are paired with or even replaced by a parallel e-commerce presence,’ Lubbe said. ‘For example, online grocery shopping established a beachhead during lockdown, and the popularity of these services continues to grow.’
For SMEs seeking to take their business online, Bob Group believes several key criteria should be met. These are:
Offer outstanding customer service
Life must be made as easy as possible for customers. Offer multiple payment and shipping methods, and ensure that the customer can always reach you across all channels.
Understand shipping and order management
‘Plan your customer journey so that you understand how you will get the product to buyer, define your order management process and plan for returns and unexpected circumstances,’ advised Lubbe. ‘It’s vital to have protocols in place to deal with any pain points that arise.’
Do your homework
Some marketplaces like bidorbuy offer free listings, while others charge monthly fees. It’s important to be aware of these, as well as other potential costs.
Automate where possible
Tools like email marketing automation can save you time and allow you to concentrate on your core business activities.
Analytics
Free tools like Google Analytics can provide actionable customer behaviour insights and help you to tailor your offering to meet the needs of your site visitors.
Communication
Often buyers want to be able to chat to you about your product or service before purchase. Being available can make buyers more comfortable, while post-purchase updates during the course of the fulfilment journey help to build trust.
‘It’s all about customer satisfaction,’ Lubbe said. ‘Asking for feedback – and listening to your customers – is the best way to improve any offering.’
BOB GROUP
https://www.bob.co.za
