Low price deals drive online sales

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The annual MasterCard survey shows that 73% of South Africa's online shoppers are likely to make a purchase in the next six months, according to the same survey, 91% chose their online retailer based on lower prices. On deal sites, 95% of respondents mentioned that they had visited deal or coupon websites and 25% of these visits resulted in the purchase of a deal.

Group buying or daily deal sites save consumers money by sharing cost effective deals on products, services or experiences. Anything from spa treatments to energy saving outdoor lighting, daily deal sites offer cost saving opportunities for cash strapped consumers.

"Access to the variety offered by the Internet gives consumers every conceivable option when shopping online, and trust between the site and consumer is more important than ever before. Groupon has invested much money and attention to ensure the customer will be happy - a matter of creating trust. We therefore ensure that our vendors can and will deliver," says Daniel Guasco, CEO of Groupon South Africa.

While price conscious consumers focus on cost saving, the online shopping industry is showing tremendous growth. Customer service will prove to be a key factor in driving online consumer behaviour and prove to be a differentiating factor for discerning e-commerce participant.

"The rise of online shopping in South Africa is very encouraging for us. It is important that we ensure customer satisfaction to ensure this continued rapid growth of online. It's about owning the trust, from the start to finish of the deal and even after. We believe the key to our success is because we offer our customers a safe platform, greater choice and attractive deals in a growing market like South Africa," concludes Guasco.