The effectiveness of e-marketplaces for small and medium retailers in Cape Town

Abstract

With e-commerce on the rise, small and medium retailers (SMRs) need to find ways to stay connected to customers; geographical barriers should not hinder their relationship with customers. The problem is that many South African small and medium retailers (SMRs) have a difficult time adopting effective e-commerce trading platforms. Within a South African context, literature does not distinguish between e-commerce and e-marketplaces for SMRs. SMRs have been slow to adopt e-commerce, and an alternative to help SMRs take advantage of e-marketplaces has not been fully explored. The use of electronic marketplaces (EMs) is regarded as an easy and viable way for small and medium retailers to connect with customers and suppliers. An analysis of how EMs have infiltrated different parts of the global retail landscape is presented. For this study, the innovation diffusion theory (IDT), or diffusion of innovation (DOI), has been adopted. The literature review pertaining to the effectiveness of electronic marketplaces as a trading platform is discussed and analysed. A qualitative research approach was used in this study. Based on the study's findings, analysis and literature review, a framework and supporting table were proposed for SMRs to evaluate the effectiveness of EMs as trading platforms. To maximise EM platforms, it is essential for SMRs to understand what they expect from the EM platforms they select to trade through. Further, implementing the proposed framework requires an individual approach since, as no two SMRs are exactly alike, they each have various and differing expectations from EM platforms. The study reached the conclusion that EMs are effective as trading platforms for SMRs.