Tag archives: mastercard

New research reveals that one of the fastest growing categories of online sales in South Africa is practically invisible, writes Arthur Goldstuck (@art2gee).

Online shopping is usually associated with electronics, books, clothes and groceries, to take some examples of physical goods being bought on the Web and delivered in the real world. But the biggest growth trends are in an invisible market that comprises both purchase and delivery in the virtual world.

When MasterCard released the findings of its annual Online Shopping Survey this week, it focused on the highlight of the research: that 91% of South Africans who shop online are highly satisfied with their overall experience. This means that, once people are persuaded to shop online – and that takes some doing – they are generally happy with the experience. There are many exceptions, as suggested by the 9% or 1 out of 10 who are dissatisfied with their experience.

The real test of satisfaction is, of course, the returning customer. And here the picture is enoraging but not as massively positive: 76% of respondents return to an online shopping site that they have used before.

The highest spend by online shoppers is, not surprisingly, on travel products: air tickets, travel and accommodation. Behind these come concert and event tickets, and coupons from group buying sites. Arguably, all of these are virtual products that do not, up front, involve a physical purchase. But all do result in a physical outcome: a plane trip, a hotel stay, or a group purchase of a physical product.