[EXPLAINER]: Everything about the new Nedbank Namibia Avo SuperShop

What is the Avo SuperShop?

Avo SuperShop is a one-stop online marketplace or shop that offers a range of product and service offerings in one place. It features many of your favourite brands across various consumer categories in one place. In the future customers will be able to buy groceries, tech, professional home services, cars, and finance and insurance products.

Why has Nedbank chosen to launch Avo SuperShop, the online marketplace, in Namibia?

The launch of the Avo SuperShop online marketplace is part of Nedbank’s digital growth strategy building on the work that we have done to make Nedbank a leading digital bank and e-commerce player on the African continent. Namibia is one of Nedbank’s biggest subsidiaries, so we selected to start the rollout with Namibia. Namibia is also one of the African countries classified as middle class, so we saw great potential for Avo in Namibia.

Why didn’t Nedbank just allow or extend the South African store so that Namibians can buy from that store?

Our ambition is of course to grow Avo SuperShop and our other digital products and services across the continent. How we recognise that our growth must consider that cross-border e-commerce or trade is more complicated and increases the cost of doing business. We are looking forward to the day when a Namibian can easily and seamlessly buy from the South African store and/or vice versa. Starting a Namibian store also allowed us the opportunity to develop and access Namibian businesses as well to sell to Namibians first and then later enable to trade across borders, as we start to leverage the opportunities created by the African Continental free-trade area (AfCFTA).

Which other countries will Nedbank launch Avo the online shopping platform?

We would like to expand Avo SuperShop across the continent, however we must do it in a smart and effective way. Africa is a diverse continent with varying languages, cultures, and consumer preferences. Adapting e-commerce platforms to cater to these differences and localizing content can be a complex challenge. However, as Nedbank also has presence in Eswatini, Lesotho, Mozambique, and Zimbabwe, it will make sense to do so. Once Avo has settled in Namibia, we will the decision on which market to enter,

Can any Namibian buy from the Avo SuperShop or is it restricted to Nedbank clients only?

Any person in Namibia can buy from the Avo SuperShop store in Namibia. It is not only for Nedbank clients. However, those who purchase on Avo using a Nedbank card can earn 1% cashback in Avo points to use in the future.

Does Avo SuperShop deliver in all of Namibia? How long does it take and how much does delivery cost?

Avo will deliver to most locations in Namibia, including both urban and rural areas. As we put more merchants and partners on the Avo online platform we will increase our reach across Namibia. 

In terms of cost, this depends on where you would like us to deliver your order to and how much you purchase. Standard shipping is N$100 for the urban areas, with the minimum order amount for free shipping is $450.

Avo takes three to seven working days to deliver products. Delivery hours are between 08:00 and 17:00 for main centres like Windhoek, Swakopmund, for example. Delivery to some regional and remote areas may take a little longer When a person checks out on the platform, they will receive their estimated delivery date.

Avo customers also have an option to ‘click and collect’ at the vendor, if they prefer, and for that there is no delivery charge as well.

How will Avo be handling its distribution of products and services across Namibia?

Avo customers have a choice between ‘click-and-collect” at the merchant or home delivery. When a consumer chooses home deliver, Avo can either send that item via a direct delivery to customers either directly or through our partner merchants. We have relationships with local partners such as …. We are continually working on developing our distribution network, so we reach all areas of Namibia.  In the future we will explore other options that have been successful in other markets including rolling out pick-up stations.

Customers will get periodic push notifications from Avo to let them know about the status of their order. If the delivery is delayed, our service providers will contact the client with the necessary updates.

Will customers be able to exchange or return an item with which they are not happy?

Yes, customers will be able to return or exchange their products if there are not happy with the products. Each merch ant has their own return policy, and the client can see the terms and conditions on our Avo platform.

There is a process that they will need to follow as outline on the system or advised by our Avo call centre and including packaging the item (in the original packaging where possible). Once their returned items have been validated by the relevant supplier and they have approved a refund, the customers’ Avo Wallet will be credited with the amount, and they can use the money to order the item again if they want a replacement.

Who do you see as your competition in the Namibian market?

From an e-commerce perspective there isn’t a major competitor like Avo in Namibia as we provide an online marketplace where you will be able to buy a variety of items from different categories and suppliers in one place. There are of course suppliers that sell via their website, but Avo as mentioned has a different proposition.

Can a Namibian order from the South African Avo SuperShop store or vice versa?

Due to customs and crossborder e-commerce trade issues, we have for now restricted it to Namibians buying from the Namibian store or South Africans from the South African store. Hopefully in the not-too-distant future we will enable crossborder purchases that are seamless and easy.

What are people buying from Avo SuperShop in South Africa and what do you expect from Namibians?

From the South African market customers buy vouchers to pay utilities, betting vouchers, airtime and data, prepaid electricity, beauty products, takeaways (Nandos, KFC), liquor, cars (Avo Auto), technology products (Apple and Samsung featured stores), groceries and financial and insurance products.

Who are the current merchants or suppliers on the Avo SuperShop in Namibia? What can Namibians buy?

Avo currently has 8 merchants signed up and we are making good progress in bringing others on board soon.

  • Nictus Namibia Furniture – furniture
  • Nictus Appliances – appliances
  • Avo Apple Namibia – Apple products and accessories
  • JC Sports – sporting clothes and equipment
  • Ze’ra Leather – leather products such as bags, wallets.
  • Chai Namibia – seller of baby & toddler products
  • Lovelle’s Baby Boutique – baby products
  • Inside Afrika – souvenirs
  • Buy airtime and data from TN Mobile and MTC.
  • Pay electricity and utilities to various municipalities in Namibia.

Namibians can also buy airtime and data and earn Avo Points. They can convert their point at checkout and pay utilities.

Besides your current product range, what other products and services are we expecting to sell on the Avo SuperShop platform?

Like the South African store, we will continually be adding more products and categories on the Avo SuperShop. In South Africa for example, Avo sells groceries, take-aways, home services, liquor, cars, and financial and insurance products. In the not-too-distant future Avo customers will be able to buy products on credit or use the buy-now-pay later options.

What are the opportunities for small Namibian business owners via Avo SuperShop and Nedbank?

Businesses can choose to sign up as a merchant on the Avo SuperShop platform and can benefit from various including:

  • increasing their opportunity to sell your products and services across Namibia. (They have access to our more than 100,000 Nedbank clients who we are encouraging to buy from the platform.)
  • can lower your cost of distribution through augmenting your sales as they sell online.
  • can leverage Avo’s digital marketing expertise for your product as you sell to our new Avo SuperShop database.

How do Namibian business sign up to sell on the Avo platform? What are the requirements to sign up? How much does it cost the Namibian business? How many businesses have currently signed up on the Avo platform?

Avo has 8 merchants already signed up now and we are in process of signing up more as we speak.

Merchants who are interested in signing up will need to contact our Avo Sales team on +264811274420.

How does one sign up on the Avo SuperShop? What does it cost to use Avo?

It’s very easy to sign up on Avo. Browse the Avo SuperShop website www.avo.africa or download the Avo SuperShop today, sign up and shop from where you are. Avo is also available on the App Store, HUAWEI App Gallery and Google Play Store. Just search for Avo SuperShop by Nedbank.

You do not have to be a Nedbank banking client to shop on the Avo SuperShop from Nedbank. Those who purchase on Avo using a Nedbank card can earn 1% cashback in Avo points to use in the future.

There are no upfront or monthly subscription fees for individuals or businesses that want to purchase on Avo.

What do you define as success in the roll out of the Avo SuperShop in Namibia?

Our success will be as more Namibians buy from the Avo SuperShop. This includes us offering more product categories for them. And having many Namibian businesses selling their products via the platform.

Tell us about the success of Avo SuperShop in South Africa.

Since its launch in June 2020, the Avo SuperShop in South Africa has signed up 2,3 million customers with over 23 000 businesses registered to offer their products and services on this e-commerce platform. Avo continues to grow exponentially, with a 70% yoy increase in gross merchandise value (GMV) as all three Avo ecosystems gain momentum. Avo Auto, a virtual vehicle mall launched in 2021, now hosts over 500 Nedbank Motor Finance Corporation-accredited dealers with close to 18 000 vehicles on the platform. Avo B2B launched to market in 2022 and offers a stock financing or working capital solution to businesses through a secure facility and is well on its way to contributing to significant GMV growth in 2023. Avo Home continues to increase its number of partners to drive scale, and Avo now a reseller for both Apple and Samsung, highlighting its increasing appeal as a destination marketplace to assist global brands and manufacturers in realising their growth aspirations.

In recognition of the progress we have made, Nedbank won the Excellence in Innovation Banking App Awards for South Africa for the Avo SuperShop, at the Global Banking & Finance Awards 2023.

What are good examples of other successful e-commerce platforms across the continent?

Some of the successful e-commerce platforms across the African continent include:

  • Jumia, often referred to as the ‘Amazon of Africa,’ which is one of the largest e-commerce platforms on the continent operating in multiple African countries.
  • Konga, based in Nigeria and is another major e-commerce player in West Africa.
  • Takealot, which operates primarily in South Africa and is one of our major competitors in South Africa and is the country’s largest online retailers.
  • Kilimall is an e-commerce platform with a presence in several African countries, including Kenya, Uganda, and Nigeria.
  • Sky.Garden, operating in Kenya, which is a mobile-commerce platform that enables small and medium-sized businesses to set up online shops and sell their products through social media channels and messaging apps.
  • Mumzworld, in Egypt, which is an online marketplace that specializes in products for mothers, babies, and children

What are the challenges for e-commerce in Africa?

E-commerce in Africa faces several challenges that need to be addressed for sustainable growth. Infrastructure remains a significant barrier. These challenges can vary from country to country and region to region. In many regions, reliable internet connectivity and efficient logistics systems are lacking, which can hinder the seamless functioning of e-commerce operations

What are you doing to ensure that your clients are well educated and do not fall prey to fraud?

Like we do with our Nedbank banking customers, we will continue to educate our Avo clients about safe money management.

How do I use my Avo Points?

You can use your Avo Points for any purchase on Avo where you can use cash, except for Avo Point gift vouchers. Whenever you are about to pay for something on Avo, you will have the option to use your Avo Points balance. Even if you do not have enough Avo Points for the total amount of the purchase, you can use your points to pay for a portion of the amount.

When you buy using a Nedbank card you earn 1% of the cash portion of your payment in Avo Points (excluding delivery). For example, if you spend N$100 in cash (excluding delivery), you will earn 1 Avo Point. This applies to whatever you spend cash from your Avo Wallet on whether it is electricity, products, groceries, home services or digital vouchers.

Why did Nedbank choose the name Avo?

After a full and comprehensive process, not only with the Avo team but also with our external agencies, the name Avocado’ came from a member of the founding team. Our intention was to not only innovate in terms of technology, but also to create a brand that would resonate with the lifestyle of our users and break through the digital clutter. We then tested the name Avocado’ across our employee base, breaking down the creative rationale. There was unanimous agreement that ‘was the best name for our online marketplace, since avocados, the ‘super fruit’, were regarded as being full of life and personality.

Leave a Reply

Your email address will not be published. Required fields are marked *