Over the past year, most parts of the world implemented restrictions and lockdowns to try to halt the spread of Covid-19, which contributed to an increase in online shopping.
Online auction site and marketplace bidorbuy CEO Craig Lubbe says businesses and their courier partners had to adapt to unprecedented fluctuations in demand.
A survey conducted by global management consultancy Mckinsey in South Africa, Europe and the US during September and November shows that the pandemic has materially changed consumer behaviour, perhaps permanently. Many retailers are looking to alter their supply chains to compete in the new normal, adds Bidvest International Logistics (BIL) road-freight division GM Shannon Wellcome.
This trend is also accelerating the leap towards just-in-time (JIT) services to manufacturers, which has been increasing this year as a result of the pandemic.
The BIL road-freight division’s services, which include daily local and line-haul distribution, partnered with key courier companies that can assist with executing door-to-door services for clients in the retail sector. This also supports the cost reduction in stock holding, explains Wellcome.
"There were some delivery delays initially, but courier companies have adapted well.
"However, businesses will also need to adapt to the on-demand economy by providing accelerated deliveries, possibly at premium rates, as more consumers choose to shop online and home delivery volume increases will need to be accommodated," Lubbe emphasises.
Demand for virtual and tangible entertainment products such as gaming and Spotify vouchers, and sports equipment like indoor bike trainers continues to show excellent growth as people spend more time at home, he says.
“We have also seen impressive interest in our home and living categories, including for small and large appliances. These categories have effectively doubled overnight, while music and instruments, as well as crafts, have also shown valuable increases in sales volume," Lubbe adds.
"As South African e-commerce shoppers and platforms become more sophisticated, we can expect to see returns options and subscription-based models move to the mainstream," he notes.
“Consumers who, in the past, never shopped online, or did so only infrequently, have become regulars and this new acquired behaviour is becoming entrenched.
"Continued concerns over the safety of public spaces such as malls have also reinforced this trend, which we expect to see continuing in 2021 and beyond," Lubbe concludes.