Retail Services News South Africa

Click-and-collect model opens up more opportunities for SA retailers

As online shopping has surged, so efficient delivery has become a non-negotiable for consumers. In fact, some surveys indicate that as much as 85% of shoppers won't buy from a retailer again if their delivery experience is poor.
Image supplied
Image supplied

Amid the e-commerce explosion, patience for delivery drivers being late or courier companies failing to update customers on their orders has worn thin. Frustrations are boiling over and it’s ultimately the retailers who suffer.

The situation is even worse when it comes to South Africa’s townships. Satellite mapping doesn’t always recognise street addresses in these areas, causing drivers to become lost. And that is presuming they are making drop-offs in the first place, as some couriers fear they may become victims of criminals.

So common have problems in delivery become that South African click-and-collect service provider, Pargo has even produced a series of online ads depicting the litany of emotions people go through when they don’t receive their orders on time.

The latest follows a delivery driver who runs into one problem after the next, from a broken street sign and no cellphone reception to a customer’s mobile going unanswered. This is juxtaposed with a pleasant experience associated with a Pargo Point.

The company’s “Live more, wait less” video shows the impact of a late delivery on a woman’s social life, culminating in a window-rattling scream of anguish.

Pargo CEO, Lars Veul says the ads strike a chord with South Africans because most have experienced these scenarios to one degree or another.

However, by exploring and offering non-traditional delivery methods, retailers actually stand to benefit.

An online poll conducted by South African news publication The Witness earlier this year found that 53.8% of respondents would rather pick up their goods from a pickup point than be delivered to them.

The click-and-collect model, where customers order online and then collect parcels from a designated point of their choosing at a time that is most convenient to them, has found favour across not only South Africa, but the globe.

This model means that effective and cheaper delivery has been opened up to a much wider audience.

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