Renub Research found that the global e-commerce market is expected to reach $12.6-trillion by 2033 from $6.6-trillion in 2024, with an expected compound annual growth rate of 7.54% from 2025 to 2033.
As SA’s e-commerce sector keeps pace with this projection, small and medium enterprises (SMEs) encounter both opportunities and challenges. Limited budgets, fragmented tools, and stiff competition from larger firms are hindering their progress.
To compete effectively, SMEs need to embrace digital transformation, optimise costs, and streamline operations.
E-commerce: a complicated puzzle
The e-commerce market in SA faces various challenges threatening smaller businesses. For instance:
- Inventory mismanagement due to paper-based processes leads to stockouts and overselling, frustrating customers and cutting profits.
- Financial strains from manual accounting and limited cash flow visibility create further inefficiencies and errors.
- A weak online presence erodes brand trust, while low customer engagement results in lost loyalty.
- Regulatory requirements can be complicated, and reliance on disconnected tools and costly experts drive operating costs up.
To tackle these challenges, SMEs need to adopt robust, integrated solutions.
Digital integration is the key to growth
SMEs have to avoid using scattered tools since each stockout, delay, or oversight can harm customer relations and credibility. A unified platform that integrates inventory management, sales, customer service, and finance is essential to reduce errors, speed up decision-making, and enhance customer engagement.
Zoho: the unified ecosystem for retail SMEs
Global business software company Zoho addresses this challenge by unifying business operations on Zoho One, a single platform with over 45 integrated applications.
As a retailer, you can quickly and easily set up an e-commerce website using Zoho Commerce, engage visitors in real time with Zoho SalesIQ, and run campaigns through online marketing tools such as Zoho Campaigns and Zoho Social. Zoho CRM provides businesses with a 360° view of sales and customer interactions along various touchpoints in the process.
You can maintain accurate inventory with Zoho Inventory, while Zoho Books delivers reliable financial reporting. Teams can collaborate effectively through Zoho People, Cliq, and Projects. Powerful tools such as Zoho Desk, Assist, Analytics, and AI-powered Zia offer timely support and enable smart, data-driven decisions.
With mobile-friendly access across all apps, you can stay connected to your business and stakeholders, empowering growth without boundaries.
Digital integration is what drives SME success
Digital integration significantly transforms SMEs by unifying operations onto a single business platform. For instance, a retail business can easily streamline inventory, sales, and customer service with Zoho, reducing errors and improving efficiency.
This unified platform also enhances customer engagement and loyalty while reducing costs, enabling businesses to scale successfully from one store to multiple touchpoints.
“Moving from Shopify to Zoho Commerce has reduced our operational costs by 50%. Seamless integrations with Zoho apps like Zoho Books, Zoho Bookings, and Zoho Campaigns provide the extensive capabilities we need for our online business at an affordable price. Plus, Zoho’s commitment to customer satisfaction and the African market perfectly aligns with our vision, so we’re here to stay,” says Martins Asenime, founder of Nigeria-based fashion brand BAMIGUGU.
“[With Zoho Commerce], we clicked a button, which was the easiest thing to do, and 35,000 items from our store were linked to Google Shopping. As a result, in 2021 to 2022, Automation Werks sold in excess of $250,000 from just an enhancement,” says Jeff Rietschel, founder of Automation Werks, a US-based company specialising in the distribution and integration of automation components for the manufacturing industry.
Building resilience through digital transformation
Digital transformation is essential for South African retail SMEs to thrive. Using the right set of business tools helps these businesses overcome obstacles and excel in today’s economy.
Zoho is a trusted growth partner, providing scalable solutions that are empowering SMEs to streamline operations, fully embrace digital connectivity, and achieve sustainable success against larger competitors.
This article was sponsored by Zoho.
