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Bidorbuy is one of the oldest and best-known e-commerce platforms in South Africa and allows people to buy and sell just about anything online.
Founded in 1999 as an online auction website, it has grown to become one of South Africa’s top online shopping destinations.
In a curious turn of events, its previous strength, acting as an independent e-commerce platform that enables independent merchants and buyers to transact business, now represents a challenge for the company.
Bidorbuy’s business model means that its third-party vendors are responsible for shipping products to customers.
This decentralized logistics model is attractive to Bidorbuy as it shifts the heavy lifting (packaging and shipping products) to the merchants.
However, the downside is that shoppers are unsure when, and even if, they will receive the products they have purchased.
Online shoppers rely on Bidorbuy sellers to pack and ship their purchased products quickly and deliver an overall good experience. This does not always happen.
Takealot, by comparison, has invested heavily in building the best e-commerce logistics network in South Africa.
This investment included the acquisition of Mr Delivery in 2014 to give Takealot control of its own logistics network through the Takealot Delivery Team division, formerly Mr D Courier.
Takealot has centralized the logistics of its market, which means that buyers who buy a product through its platform receive a constant experience, independent of the seller.
Whether you purchase products from Takealot or one of its business partners, the packaging and shipping process is the same.
This centralized logistics model has helped Takealot create a trusted experience for online shoppers and, through this, dominate the local online shopping market.
Bidorbuy case study
A recent request from one of the MyBroadband staff members illustrates the challenge facing Bidorbuy.
You bought products from a Bidorbuy seller on December 21, and the seller accepted the order the next day.
Since he bought the product, there has been no communication from the seller and attempts to contact him were unsuccessful.
Two weeks after the order was placed, he contacted Bidorbuy to ask if there were any problems with the delivery.
Bidorbuy was very helpful and informed him that since the product was purchased from a verified seller, there was up to R5,000 buyer protection.
They also escalated the issue, which should result in the order being processed and shipped to you within the next three days.
Bidorbuy’s e-commerce platform works well and protects buyers, but the decentralized logistics model means that people can still have a bad experience.
Unless Bidorbuy adapts a centralized logistics model for your market, you will not be able to control the entire customer experience.
The benefit of this open business model, which is similar to a classifieds site, is that people can find unique new and second-hand products that are not available on sites like Takealot.
It remains to be seen if this will be enough to grow in a world where South Africans are used to Takealot’s excellent service levels.
Now Read: Bidorbuy Launches “My Fearless Future” Campaign to Help Small Businesses
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