A lack of a reliable postal service has hindered the growth of e-commerce in South Africa. Experts argue that a functioning postal service could have benefited both domestic and international e-commerce, especially for reaching underserved areas. While private couriers bridge the gap, they struggle with rising crime rates and impose premiums for deliveries to townships and remote areas.
Bidorbuy — now Bob Shop — founder Andy Higgins has said South Africa’s domestic and international e-commerce industries would have been significantly better off if the country had a functioning postal service. Higgins founded Bidorbuy in 1999 at the height of the dotcom boom and soon became the largest e-commerce platform in South Africa and Africa.
“In the early days of Bidorbuy, for instance, the South African Post Office was a key enabler of shipping, providing the most cost-effective solution for moving goods purchased on the marketplace,” Higgins says. “A dependable postal service can be a powerful driver for e-commerce, particularly in reaching underserved or remote areas where private courier services may not be economically viable.” Zulzi CEO Donald Valoyi echoed his view, saying that while private postal and courier services have filled the gap left by the Post Office, the state utility caters to all South Africans, especially those in lower-income segments. Valoyi believes this lack of access to affordable delivery services is impeding the growth of e-commerce in South Africa, which requires high volumes to increase penetration. Currently, South African e-commerce growth is being obstructed by rising costs caused by criminal activity.that many couriers impose premiums when delivering to townships and regional areas, preventing many from affording these services. While a functioning Post Office would have an obligation to deliver services to all South Africans, it is unclear how it would have dealt with the theft, hijacking, and other crime private couriers are faced with. Higgins pointed out that Bob Group is trying to overcome this obstacle by expanding its Bob Box smart parcel network into townships and regional areas. The Bob Box service uses locally manufactured steel lockers where e-commerce merchants and customers can deposit and collect parcels using a password or PIN-protected security mechanis
ECOMMERCE SOUTH AFRICA POSTAL SERVICE DELIVERY SECURITY
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