Air cargo key for supply chain
South Africa’s e-commerce sector has experienced impressive growth in recent years too, thanks also to increasing demand for online shopping opportunities, the expansion of digital platforms and improvements in logistics and payment systems. Here’s ITJ correspondent Thola Nzuza’s analysis of the role airfreight in particular plays in the segment.
Several interrelated factors have led to the exponential growth of e-commerce in South Africa. Both the widespread availability of affordable smartphones and improved internet connectivity have contributed to expanding the scope of online shopping, making it accessible to a greater proportion of the population. This digital revolution hasn’t only increased consumer participation in the markets, but also facilitated the emergence of entrepreneurial ventures eager to tap into these expanding online markets.
The convenience of e-commerce has attracted a wave of consumers seeking hassle-free shopping solutions. Widespread product availability, competitive prices as well as convenient courier delivery options have also contributed to the rising overall appeal of the nation’s e-commerce platforms.
From a click to a courier
The positive trajectory is consistent with these aforementioned factors and suggests that the e-commerce market will continue to expand significantly. Some market studies “estimate South Africa’s e-commerce sector’s overall market growth at a compound annual growth rate (CAGR) of approximately 12.5% for the 2022-2027 forecasted period.” (Source: Mordor Intelligence).
Just about anything can be purchased online at the click of a button, with door-to-door inter-airport services and courier companies promising fast delivery. The rapid expansion of the e-commerce industry demands efficient and timely product delivery, which is crucial to ensure customer satisfaction.
From the air to the roads
Air cargo is supported by domestic courier services in the supply chain, providing fast transport and significantly reducing delivery times. Expedited delivery processes are essential to meeting the expectations of modern-day consumers – who these days frequently want nothing less than instant gratification.
Most of the e-commerce consignments imported into South Africa originate from various parts of the world. In a discussion with Roy Solomons, the former general manager for commercial activities with BidAir Cargo, regarding the role of airfreight in the distribution of e-commerce consignments to the domestic market, he mentioned that “once the goods have been imported by foreign airlines into South Africa through its international airports, they are then distributed across the country primarily by road transport. Courier companies additionally offer efficient door-to-door delivery services to ensure that the products reach their final destinations promptly.”
Cross-border services
Moreover, deploying air cargo services enables e-commerce businesses to reach a wider consumer base in South Africa as well as in the surrounding region. E-commerce platforms capitalise on a larger market by expanding their delivery scope beyond national borders, thus further contributing to their growth.
Relying on airfreight facilitates seamless and efficient cross-border trade, thus ensuring the prompt delivery of customers’ orders, regardless of their location.
However, imports for the region are transported by international cargo airlines directly from exporting countries to their main hubs, according to Solomons, or via transit points such as Dubai.
Like any booming business segment, e-commerce also faces challenges, such as large air transport costs, which are usually higher than for traditional ground transport methods. While airfreight provides e-commerce businesses with numerous advantages, airlines have to simultaneously strive to balance the need for swift deliveries with competitive pricing for their customers.
In summary it can be said that the exponential growth of e-commerce businesses has revolutionised the retail landscape, but also that its continued success depends on air cargo for the necessary speed and efficiency to address customer expectations in the digital age.
As the industry evolves, stakeholders must collaborate and innovate to find effective solutions that enable seamless and rapid delivery services for the benefit of both businesses and customers.