South Africa’s online retail sector is entering a new era of growth and maturity, with e-commerce sales in 2025 projected to surpass R130 billion (nearly $7 billion), close to 10% of national retail sales, a dramatic jump from the sub-1% share in 2015. This is according to an Online Retail 2025 report by World Wide Worx, a tech research company, in partnership with Mastercard, Peach Payments, and Ask Africa.
The report highlights that the sector is growing more than ten times faster than physical retail, with online sales jumping 35% in 2024 (R96 billion, over $5 billion), and expected to climb by a similar margin in 2025.
Takealot remains the most frequently used platform overall, along with Shoprite (Checkers Sixty60), Pick n Pay, and Woolworths, and the fast-growing Foschini Group’s Bash reporting double-digit growth, especially in grocery and FMCG, where on-demand delivery platforms have transformed consumer expectations for immediacy and convenience.
“Takealot was the only game in town in 2023. That shifted dramatically in 2024, despite the arrival of Shein and Amazon, Takealot still increased its share,” said Arthur Goldstuck, CEO of World Wide Worx, a tech research company.
International entrants shake the market
Global giants like Amazon, Shein, and Temu’s arrival forces local brands to up their game. Amazon launched its South African site in 2024, expanding into groceries and household goods, and opening a seller centre for SMEs in Cape Town. Shein and Temu shook up the fashion sector, capturing an estimated R7.3 billion (nearly $390 million) in turnover and 40% of online clothing sales by 2024, though new VAT and customs rules are curbing their growth going forward.
Despite cross-border pressure, local retailers have posted robust growth. Regulatory changes closing import loopholes are helping level the playing field. Domestic platforms excel in delivery speed, returns convenience, and trust, factors crucial to South African consumers. The report’s surveyed retailers feel confident, with 65% seeing little impact from Temu or Shein, and 75% rate their capabilities better than global competitors.
Who’s buying
Young, urban consumers (ages 18–34) remain the core demographic, but middle-aged and higher-income South Africans are adopting fast. Middle-income earners now account for the fastest-growing segment of online buyers. Women are highly active in groceries and fashion, while men show growing participation in electronics and general retail.
“Those earning more than R50,000 a year in 2023 made up 25% of online shoppers. In 2024, that moved up to 34%. Even the R40,000 to R49,000 segment jumped from 22% to 36%. So you can see all the upper-income segments dramatically increase penetration,” said Goldstuck.
Online, South Africans buy everyday essentials like groceries (via Sixty60, Pick n Pay, Woolies Dash), and FMCG is the fastest-growing, due to on-demand delivery. Fashion and beauty also follow with platforms like Bash, Shein, Temu, and Woolworths, reporting strong year-on-year growth in these categories. Homeware, electronics, and personal care see expanded uptake, with higher value and frequency among urban and middle-income shoppers.
Digital payments
Trusted payment rails such as EFT, debit, and credit cards remain dominant, with growing interest in instant EFT (PayShap), mobile wallets, and Buy Now, Pay (BNPL).
WhatsApp is a major engagement channel for South African online retailers, especially for customer support and promotions, but the platform faces significant integration and trust challenges when it comes to payment gateways[1]. While most retailers use WhatsApp for handling queries and marketing, actual transactions are rarely completed via in-chat payment links, with EFT invoices being the dominant method due to hurdles in gateway integration, reconciliation, and consumer confidence.
69% of retailers use WhatsApp primarily for customer support, and over half use it for promotions. But only about 16% complete payments via WhatsApp links; the vast majority revert to sending customers EFT instructions rather than enabling seamless, real-time payment within the app. Key barriers include technical integration problems, reconciliation with accounting systems, consumer trust issues, and concerns over fraud and regulatory compliance.
AI on the horizon
The report notes that, while AI is widely recognised for its transformative capabilities in e-commerce, most South African retailers are still at the early stages of experimentation and adoption, treating it as a marketing enabler rather than a comprehensive business solution. Retailers anticipate that, as trust in AI grows and platforms mature, adoption will spread into more technical and operational aspects, including fraud detection, dynamic pricing, and demand forecasting.
What’s next for South Africa’s e-commerce?
Online sales are poised to hit 12% of national turnover by 2027, cementing e-commerce as a structural force in South African retail. Retailers are aiming for blended approaches, combining digital, in-store, and new payment options to maintain their competitive edge. As consumer trust and convenience drive loyalty, retailers must simplify checkout, provide clear shipping costs, and test new payment and authentication solutions, including passkeys and biometric options.
Rahul Jain, co-founder of Peach Payments, noted that the most exciting trend in the e-commerce space in the coming years will be the “democratisation of e-commerce, like bringing products and services, whether it’s remote areas in the country or on the continent, not the traditional formal mixing markets.”
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