In 2017, Gumtree South Africa experienced its fastest growth since its debut in the country 11 years ago.
This is according to Johan Nel, CEO of Gumtree SA, who said that all basic measures have shown great improvements this year.
"This is not just true for Gumtree.The entire e-commerce space has been reinvigorated," Nel said.
He said that new businesses and alliances are emerging and that revenue levers are turning.
While it is difficult to attribute a single factor to the phenomenon, Nel thinks that this is largely due to the maturing of the market.
"Consumers have been pushed to participate in the e-commerce space due, in part, to economic pressure, but also because of the lucrative opportunities that these spaces have created," said Nel.
"No industry has demonstrated this more clearly than the auto industry, with a record number of dealers adding classifieds to their sales strategy."
"As financing becomes more difficult to obtain and new car prices rise, informal traders generated nearly R6.6 billion a month in 2017, simply by buying and selling cars online ".
"Gumtree has become a business tool for South Africa's cash-strapped, which facilitates market entry of entrepreneurs and the launch of their own business. . "
Nel told MyBroadband that there have been some consolidations in 2017 that will materialize next year, and consumers will reap the benefits.
"South Africa is still a tumultuous market for all businesses, but uncertainty only feeds the ads," he said.
"Weaker economic prospects and high unemployment rates create greater interest and consumer participation in space because of the ease of entry and associated cost savings . "
This should allow new players to enter the market, combined with increased marketing spending and investments by established companies.
Nel said that Gumtree would also remain true to his goal of helping South Africans to trade.
"We are the number one classifieds platform in terms of size and popularity for a number of years, but we've never taken that for granted."
"2018 will see a renewed interest in the quality of the user's experience, their needs, their concerns and their goals."
The platform will also offer its customers enhanced advertising services through Gumtree Media.
"South Africa is at the dawn of a new era of smarter online advertising and Gumtree will lead the charge," said Nel.