Online shopping boom in South African townships – MyBroadband

E-commerce is booming in South Africa’s informal settlements. However, this is not in the way many may expect, with entrepreneurs using WhatsApp and Facebook Lite to sell their products online.

This is according to informal economy expert and author GG Alcock, who explained that most low-end smartphones come pre-installed with apps like WhatsApp and Facebook Lite, which serve as the default social media apps among many township residents.

“Online and delivery is becoming very popular at informal township outlets, particularly in the fast or out-of-home food sector,” he told MyBroadband.

“However, it is not using the typical apps; it’s using WhatsApp and Facebook Lite.”

“People are using smartphones and stuff in ways that work for them so we’ve seen over quite a long time the kind of growth of WhatsApp and Facebook Lite,” he added.

Alcock explained that apps like these offer affordable access to online messaging and social media for lower-income earners, with many mobile operators selling specific bundles for these platforms.

“The most common form of ‘online’ shopping is WhatsApp. Most informal outlets will have a Facebook page and linked to WhatsApp,” he said.

“People will order by sending their pin location and order via WhatsApp. The delivery will be made, and payment will be taken on delivery.”

Alcock gave the example of a Soweto resident with a bakery that ran into trouble during the Covid-19 pandemic and associated lockdowns. He put his business on Facebook in an attempt to address the challenges.

He invited customers to send him their pin location, and they could choose from a selection of buns, cakes, and other baked goods that he had loaded on his business’s Facebook page.

“He invited people to send him and WhatsApp him their order, and then he had these young guys with trolleys who walked around delivering in a vicinity of about 15km,” said Alcock.

“He saw this real acceleration using that kind of e-commerce, so that was a kind of start of digitisation we see.”

E-commerce player Bob Group is trying to expand access to online shopping in South Africa by installing its smart Bob Box lockers near some of the country’s townships.

In recent feedback to MyBroadband, it said the service has proved popular among members of these communities. It said it has plans to install more lockers near South African townships.

“These lockers are definitely gaining popularity. The initial response has been very positive,” said Bob Group head of shipping services Anita Erasmus.

“While it’s still early to pinpoint the exact reasons, we believe it’s a combination of factors such as the convenience of having a pickup point close to where people live and work and the cost savings associated with using lockers for deliveries, which typically come with lower shipping rates.”

Its network of smart lockers currently features six situated near South African townships:

• Balfour Mall — Alexandra
• Norkem Corner — Tembisa
• Stoneridge Centre — Lethabong
• Tshwane Regional — Mamelodi
• Astron Airport City — Nyanga
• Capricorn — Coniston Park

Erasmus said Bob Group is looking to launch Bob Box locker sites in Durban.

“Our objective is to provide accessible delivery and pickup options for people living in informal settlements while ensuring that these lockers are located in secure and safe spaces,” she added.

“We have also not encountered any security-related incidents at these locations, which is reassuring. This positive outcome is likely due to our careful planning, community engagement, and choosing secure and accessible sites for our lockers.”

Erasmus said the company wants to expand to more locations and launch a locker-to-locker delivery service.