Critical success factors for effective e-tailing websites for SMMEs in the Cape Metropole

Abstract

The retail sector in South Africa is changing as e-tailing becomes a more successful form of business. Although e-tailing has not taken off as much as it has in developed economies, it is still an industry that is expanding and has ample room for new competitors to succeed. However, only a few e-tailers have so far been able to control the sector. Therefore, it is important to investigate the critical success factors (CSFs) that contribute to the success of e-tailing websites to identify how the customer conversion rate and overall user experience can be improved. In a volatile economy such as South Africa, it is vital for researchers to identify CSFs for effective e-tailing websites. The objective of this study was to fill a knowledge gap by researching and identifying how to develop and maintain an effective e-tailing website to help current and future small, medium, and micro-enterprise (SMME) e-tailers drive economic growth and employment, enhance their current e-tailing website strategy, gain a competitive edge, and drive more traffic to the e-tailing website. To find the CSFs for successful e-tailing websites in Cape Metropole, this study explored the importance of e-tailers in the South African economy, the challenges faced by South African online shoppers, and the successful strategies used by owners of successful e-tailing websites. This study adopted an interpretive philosophy to generate qualitative data. Data were collected through semi-structured interviews with 15 e-tailing website owners. The CSFs found in this study can help newcomers understand what it takes for an online store to perform well. The study revealed that knowledge and finance are the most fundamental CSFs that contribute to an e-tailer’s success. Overall, the study identified the main problems faced by e-tailers and proposed ways to deal with the identified problems to enhance effective growth and development. This information can be used as a guide for both current and future e-tailing.