E-commerce Tsunami Expected As Black Friday Approaches

45 Days(s) Ago    👁 69
ecommerce tsunami expected as black friday approaches

South African e-commerce platforms are preparing to handle about 240000 incoming parcels during the Black Friday online shopping frenzy at the end of November just from Shein and Temu.

According to Garry Marshall, CEO of the South African Express Parcel Association, the online shipping industry has seen phenomenal growth and, at current levels, imports about 1 000 packages every day, mostly from China.

But its the anticipated Black Friday peak that heralds an unstoppable tsunami, despite prevailing issues regarding import duties involving heavily discounted shopping sites.

Marshall said these issues would most likely be resolved because although the tax man has to take his chunk, its not going to stop e-commerce.

Addressing a supply chain gathering at last weeks Sapics Spring Summit in Johannesburg, he said even though there are big issues at the moment in terms of levelling the playing fields through duties, customs regulations and concessions, the expectation is that it wont stop sites like Shein and Temu.

In addition, the parcel industry is ready to meet the e-commerce avalanche.

Some of our members are gearing themselves up for the peak. At least one of our members is automating at a helluva rate.

He said much of the preparation boiled down to being capacity-ready when demand spiked.

Service providers analyse what their system is capable of. They understand what their constraints are in terms of volume, and so they plan for that. A lot of work goes into being able to restrict or control the volume in your system so that you dont overload or collapse it.

Evert de Ruiter, principal consultant at Auctoro Advisory, said the preparedness of online retail platforms for Black Fridays deluge became more visible closer to the time.

He said as a rule of thumb, shoppers should guard against over-promising, especially when sites say yes to everything.

More advanced sites, indicating that something might take time before its available, are usually indicative of good expectation management, which is where ones system and data must be accurate, De Ruiter said.

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