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Research New business South Africa

Save by shopping online

Consumers are turning to the Internet to cut shopping costs. This is according to a study by the consumer division of Neotel, the second national fixed-line telecoms network operator.

The company advises people to shop online because by doing so they could save an average of 20%.

It said that, with the latest security technology and encryption techniques, websites were becoming fraud-proof.

Online retailing in South Africa is growing at about 35% a year.

"The Internet not only allows you to harness global information but also conduct commerce with the click of a button."

The Neotel study identified several areas in which substantial cost savings could be made by shopping online. These include:

  • Driving: costs include the amount of petrol spent sitting in traffic, as well as vehicle wear and tear;
  • Time: the most basic shopping trip could cost more than an hour;
  • Impulse buys: magazines, chocolates and other small items are strategically placed to tempt customers;
  • Grocery shopping: with 24-hour delivery time for some suppliers, a shopper can get the exact amounts of items wanted and save a day;
  • Banking: the Internet is open 24 hours a day and saves a potentially dangerous trip to an ATM.

Julie Tomlinson, director of mobile business at Sybase SA, said South Africa was the fourth-largest user of mobile Internet services.

She said that, as the network infrastructure in Africa advanced, e-commerce would be used by more people at the lower end of the socioeconomic scale.

Source: The Times

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