Complete Change in How South Africa Shops
The way people in South Africa buy things has changed completely over the last few years. Back in 2018, online shopping was very small, making up only about 1.4% of all retail sales in the country.[1, 2] Most people still bought everything in physical stores.
However, the period from 2018 to 2025 has seen an explosion of growth that has permanently shifted the market. By the end of 2025, it is expected that online sales will reach a massive R130 billion and make up close to 10% of the entire national retail market.[3, 4]
This jump from 1.4% to 10% is not just a little bit of growth; it is a structural rebalancing—meaning the online world is now taking the lion’s share of new money spent in retail. When looking at the numbers, offline retail has barely grown, perhaps only 1% to 2.5% in recent years. Meanwhile, online retail has consistently grown 10 times faster, showing that e-commerce is now a core engine of growth for big retailers.[3, 5] The market is now entering a mature phase where big, established players like Shoprite and Woolworths are driving the growth, not just small startups.[3]
The Big Money Story: Growth from (2018–2025)
The biggest change agent for South African e-commerce was the COVID-19 pandemic. Before 2020, growth was slow and steady. But the need to stay home and avoid sickness acted as a major catalyst.[6]
In 2020, South African online sales shot up by an astonishing 66% compared to 2019, reaching about R30 billion.[7] This jump forced many businesses, especially Small and Medium Enterprises eCommerce Webdesign, to quickly build online stores and delivery systems.[8] Although it started because of fear and lockdown rules, this huge rush of people shopping online created new, long-lasting habits.
The growth didn't stop once the lockdowns ended. In fact, it accelerated. By 2023, total online sales reached R71 billion.[3] The momentum continued through 2024, when sales expanded by 35% to hit an estimated R96 billion.[9, 10] By the end of 2025, analysts project that online sales will surpass R130 billion.[3, 10]
One reason this growth is sustained is the change in who is shopping. Initially, young people were the pioneers, but the market has shifted. The biggest spenders are now older shoppers who have more money to spend, meaning that the average value of each online transaction is climbing, which helps drive that massive revenue growth.[9]
The table below clearly shows this incredible journey in South African Rand (ZAR):
South African Online Retail Sales: The Growth Story in Rands
| Year | Online Sales (R Billion) | Year-on-Year Growth (%) | Share of Total Retail (%) |
|---|
| 2018 | R12.5 | N/A | 1.4% |
| 2020 | R30.0 | 66.0% (vs 2019) | ~2.5% |
| 2023 | R71.0 | N/A | 6.0% |
| 2024 | R96.0 | 35.0% | 8.0% |
| 2025 (Forecast) | R130.0 | 38.0% (Projected) | ~10.0% |
Figure 1: The Exponential Rise of South African E-commerce (2018-2025) - A visual representation of the growth in Online Sales (R Billion) and the steep increase in the E-commerce Share of Total Retail, highlighting the jump that occurred between 2019 and 2020, and the continuing strong acceleration through 2025.
The Top Things South Africans Buy Online
The online market is dominated by three main categories: Fashion, Electronics, and Groceries.[11]
The Grocery Race and On-Demand Delivery
The most dynamic and important area of growth right now is Groceries and everyday fast-moving consumer goods (FMCG).[11] This sector has changed consumer expectations, proving that South Africans want immediacy and convenience.[4]
Major retailers have poured massive investment into this area, turning their physical stores into micro-delivery hubs. For example, Checkers Sixty60 (Shoprite’s delivery app) grew by 47% in the first half of 2025, generating nearly R19 billion in sales.[3, 5] Pick n Pay’s online sales grew by over 60% in 2024, and Woolworths Dash grew by nearly 50%.[3, 5]
This strong performance in groceries is crucial because it gives retailers a powerful advantage: customer loyalty. Sixty60 reports an amazing 85% customer retention rate after the first order, and these online customers are nearly four times more valuable than customers who only shop in-store.[12] This shows that solving the puzzle of fast, reliable grocery logistics is the key to long-term profitability and customer retention in South Africa.
Fashion and The Global Price War
Fashion and apparel remain a top category, but they have been violently shaken up by the arrival of global fast-fashion platforms like Shein and Temu.[11, 13] These two global giants captured an estimated 37.1% of the total online clothing market in 2024 by offering incredibly aggressive pricing.[11, 13]
The entry of these giants has forced local clothing groups to accelerate their digital strategies. The Foschini Group (TFG)’s Bash platform now contributes 12% of the group’s sales after experiencing growth that exceeded 40%.[3, 5] This confirms that local retailers are actively defending their turf by improving their online experience.
Electronics and Tech
Electronics and gadgets continue to see stable growth, particularly for high-value items like smartphones, laptops, and home appliances.[14] Established local players like Takealot lead this market, ensuring access to a wide range of goods, including local specialties like solar-powered gadgets.[14]
Below is a summary of the most important sectors driving the market:
Most Popular Online Shopping Categories
| Category/Sector | Why it is Popular Now | Key Growth Drivers |
|---|
| Groceries & Food | Unmatched speed and convenience (on-demand apps like Sixty60) | Pandemic habits that stuck; major retailer investment in last-mile delivery. |
| Fashion & Apparel | Massive choice and extreme affordability (driven by global fast fashion) | (eCommerce Marketing); aggressive pricing by international players. |
| Electronics & Tech | Access to local specialties and easy price comparison | Stable market; dominance of established local e-tailers (Takealot). |
The Battle for the Digital Shopping Cart (Competition and Global Entrants)
The South African e-commerce landscape is currently a two-way battle: a local contest between established platforms, and a defense against massive global companies.
The Local Giants
Takealot has traditionally been the largest e-commerce retailer in the country, generating online revenue of over US$1.3 billion in 2024.[15] However, the rise of the omnichannel approach, where physical stores help power online fulfillment, has created powerful new champions. Shoprite has claimed that Checkers Sixty60 is now the largest digital commerce platform in the country, even if its total sales revenue hasn't fully surpassed Takealot yet.[12]
Sixty60’s success comes from leveraging its vast physical network—using stores as fast delivery centers. This gives them superior speed and a high fulfillment rate (97% stock fulfillment).[12] For shoppers, this speed and reliability translate into strong trust, which is a powerful asset against foreign competitors.
The Global Wave: Amazon, Shein, and Temu
The market dynamics shifted dramatically with the entry of global giants. Shein and Temu, known for their aggressive price strategies, captured R7.3 billion in turnover in 2024.[13] This success was partially fueled by exploiting customs and tax loopholes, which led to local brands struggling to compete.[13]
However, the rapid growth of these global platforms is forcing the government to act. New, stricter customs and tax rules are being put in place to level the playing field.[4, 13] This regulatory action is necessary to protect local businesses and the manufacturing jobs they support.[16]
Furthermore, Amazon launched its South African site in 2024 and expanded into new categories like groceries in 2025, signaling a long-term commitment.[3, 4] Amazon’s entry is expected to intensify the price wars, which ultimately benefits consumers through better pricing and potentially faster delivery options.[17]
Despite the arrival of these international companies, many South African shoppers remain cautious. Close to half (46%) of shoppers still say they trust local e-commerce platforms more than international ones.[10] This trust is built on domestic platforms offering reliable delivery speed, easy returns, and seamless refund processes, factors that are crucial to consumers.[4]
How South Africans Click and Pay
The Mobile-First Nation
For South Africans, online shopping is primarily a mobile experience. Over 77% of consumers shop using mobile devices.[11] The market share for mobile web traffic in the country is overwhelmingly dominant, sometimes reaching over 90%.[18, 19]
This mobile-first approach is essential because for many people, the smartphone is their only way to access the internet. Africa has bypassed older, fixed infrastructure (like desktop computers and landlines), making mobile the main platform for everything.[20] Any business looking to sell online in South Africa must make sure its website and apps work perfectly on a phone to overcome rural accessibility barriers.[14]
Payment: The Rise of Instant EFT
When it comes to paying, traditional methods like debit cards (58%) and credit cards (30%) are popular.[11] But a major trend is the rise of Instant EFT (Electronic Funds Transfer), which has quickly become the second-most preferred method after cards.[21]
The popularity of Instant EFT is closely tied to user experience and trust.[21] While credit cards offer more protection if a purchase goes wrong, many shoppers prefer using Instant EFT to avoid entering sensitive credit card details on new websites. This choice suggests a cautious consumer base that values direct, secure bank-to-bank transactions over other options.[22]Newer payment innovations like Pay by Bank (PayShap) and Buy Now Pay Later (BNPL) services are also rapidly gaining popularity.[10]
The Last-Mile Challenge: Logistics is Expensive
While the digital experience is improving, the journey of the physical package—the "last mile"—remains the biggest challenge and cost for e-commerce in South Africa.[6]
Logistics in South Africa is complicated and costly, often ranging between R90 and R900 per parcel.[23] This high cost is driven by several factors:
- Infrastructure: Poor road networks and the lack of a standardized national address system make delivery complex, requiring drivers and customers to be in constant contact.[24]
- Security: Logistics companies must invest heavily in protective measures, sometimes using cash-in-transit escorts, due to high rates of vehicle hijackings.[23] This means the cost of crime is built directly into the delivery price.
- Consumer Expectations: Shoppers demand improvements, with 51% wanting easier returns and 47% demanding cheaper or free shipping.[25]
For retailers, solving this last-mile problem is what truly separates the winners from the rest. The high cost and complexity mean that companies like Checkers Sixty60, who manage to deliver quickly and reliably, build a powerful barrier against competitors.[12]
Quick Answers: Faq's
Here are four frequently asked questions about the South African e-commerce market:
1. Is it safe to pay online in South Africa?
Yes, it is generally safe to shop online, but only if you stick to reputable and well-known online stores.[26] Always check that the website uses a secure payment gateway (look for the padlock symbol in the browser address bar). The safest payment methods are usually credit cards or trusted services like PayPal, which offer buyer protection. Instant EFT is also very popular because shoppers trust the direct bank transfer method and don’t have to share card details.[21]
2. How long will it take to get my package?
Delivery times vary greatly depending on where you live and which service you choose. Major cities usually have the fastest delivery, often within 1 to 3 days using courier services. However, delivery to more remote or rural areas can take significantly longer (up to 5 days or more) because of logistical and infrastructure challenges.[23, 24] On-demand grocery services like Checkers Sixty60 aim for delivery in under an hour.
3. Can I buy from international stores like Amazon or Shein?
Yes, you can absolutely purchase from international platforms. Many South Africans buy from overseas, especially the United States and Europe. Global giants like Amazon, Shein, and Temu have all launched or expanded significantly in South Africa.[4] However, keep in mind that purchases from international sites may take longer to arrive and could incur extra customs duties and taxes upon arrival.
4. Why do I have to pay for shipping so often?
Shipping costs are high in South Africa because of serious logistical challenges. The cost is driven up by high fuel prices, poor road infrastructure in some areas, and the need for security measures to protect the packages and drivers.[23, 24] These costs are simply more expensive than in many developed countries, making it difficult for most retailers to offer free shipping unless the customer spends a large amount of money.[25]
Conclusion: A Mature Market Built on Trust and Logistics
The South African e-commerce market has transformed from a tiny novelty in 2018 to a powerful, mature economic force projected to approach R130 billion by 2025. This success is fundamentally rooted in three key developments:
- Permanent Behavior: The habits established during the 2020 pandemic have become sticky, shifting the market to a point where online sales are structurally displacing physical retail.
- The Omnichannel Advantage: Local retailers have successfully leveraged their existing store networks (omnichannel strategy) to dominate high-frequency, high-value sectors like groceries. This speed and reliability build consumer trust, which is a powerful defense against global entrants focusing purely on price.
- Profitability: Importantly, the industry is not just growing; it is profitable. Over 73% of retailers report that their e-commerce operations are scaling it profitably.[10] This profitability ensures that large retailers will continue to invest heavily in the future, securing the long-term growth and success of the digital economy in South Africa.
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With over 21 years of experience, I specialise in designing and developing custom e-commerce websites and mobile apps for clients seeking to establish an online presence. I assist clients in building tailored e-commerce solutions and provide training on managing the backend, empowering them to run their online businesses independently.
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