E-commerce turnover is expected to exceed R130 billion by the end of 2025, potentially capturing 10% of SA’s total retail market for the first time.
Local remains lekker for South African online shoppers, as Naspers-owned e-commerce group Takealot maintains its grip on the market.
This is despite international e-commerce retailers – such as Amazon, Shein and Temu − descending on local shores.
This is according to insights in the 2025 Online Retail in South Africa study, conducted by World Wide Worx, in partnership with Mastercard, Peach Payments and Ask Afrika. The research examines online shopping data from 2023 to 2024.
The findings were announced yesterday at a media briefing in Rosebank, with research lead and World Wide Worx MD Arthur Goldstuck detailing the shifting demographics of online shoppers, payment methods used, platforms that dominate and online shopping frequency.
The study notes that established local player Takealot extended its lead decisively in 2024, used by 31.9% of online shoppers (up from 20.9% in 2023).
Shein/Temu, new major forces, have been positioned in second place at 15.3%. Amazon climbed to 12.3%, edging out Superbalist at 12.1%.
According to the study, the top names (Takelot and Shein/Temu) now account for 47.2% of mentions, up from 29.2% for the top two in 2023 (Takealot and Superbalist).
Goldstuck stated: “Despite the arrival of Shein, Temu and Amazon, Takealot increased dramatically in the proportion of people shopping there. However, you can instantly see the impact the international players have made.”
Online shopping platforms used by South Africans in 2024.
In the case of frequently used online shopping platforms by local consumers, Takealot is still a primary destination, cited by 45% of the respondents.
It is followed by Checkers Sixty60 (16%), which is far ahead of other grocery players. Looking at the other grocery-led platforms, Pick n Pay online (8%) and Woolworths (7%) also feature.
The rest of the market is fragmented across Makro (5%), Superbalist (5%), Mr Price (4%), Loot (3%) and TFG (3%), with 4% selecting “none”.
Most frequented local shopping platforms.
Even though multinational e-commerce disruptors Amazon, Shein and Temu have not knocked Takealot off the podium, the entrants have added momentum to e-commerce.
Amazon, which launched its South African site in May 2024 with a catalogue of 150 000 products, has since expanded into groceries, pet food and health supplements.
In January, Amazon opened a walk-in seller centre in Cape Town to onboard and support South African SMEs, signalling its long-term intent.
In the fashion sector, Shein and Temu reached an estimated R7.3 billion in turnover in 2024, equal to 3.6% of the clothing, textile, footwear and leather (CTFL) market and nearly 40% of online sales in the category.
However, stricter enforcement of customs rules and the closure of VAT loopholes have narrowed their price advantage, and their rapid ascent is expected to slow in 2025, states the study.
“Shein and Temu’s arrival reshaped consumer expectations for low-cost, fashion-forward online shopping, but the story is not one of outright dominance. Their market share figures sit within an import landscape already worth nearly R100 billion a year.
“As government tightens enforcement and local retailers sharpen their digital offerings, the more likely scenario is co-existence: Shein and Temu remain influential, but they do not eclipse South Africa’s domestic CTFL sector.”
Cultivating e-commerce culture
South African e-commerce has come a long way, with this market segment no longer sitting on the periphery.
Over the years, Takealot has reportedly grown to support over 12 000 small businesses through the Takealot Marketplace platform, expanding its nationwide delivery and collection hubs to over 100 pickup points.
Mastercard SA country manager Gabriel Swanepoel said yesterday, in his opening remarks at the release of the report, that in the 1990s, when e-commerce just launched, everybody was convinced South Africa will “never have a mail order culture”.
First born out of necessity because of the COVID-19 pandemic but then out of convenience and ability to transact in real-time, which is what consumers really want, there’s been “massive growth” that has expanded and will continue unabated, explained Swanepoel.
“The growth of online retail reflects the combination of consumer trust and reliable payments. Secure, seamless transactions are what allow retailers to scale at speed and consumers to shop with confidence. This combination of trust and efficiency is turning digital activity into real economic growth.”
Swanepoel added that inclusivity remains critical to long-term growth. “Momentum is no longer limited to major cities. It is in smaller towns and among middle-income households as connectivity improves and secure payments open access. This shows how digital inclusion is expanding opportunity well beyond traditional retail hubs.”
The latest instalment of the study reveals online retail sales grew by 35% in 2024, reaching R96 billion, representing 8% of total retail sales.
E-commerce turnover is expected to exceed R130 billion by the end of 2025, potentially capturing 10% of the country’s total retail market for the first time.
“Growth has continued through 2025 at an annualised rate of 38%, far outpacing physical retail, which increased by just 2.5% in 2024 and 1.6% by mid-2025, leading to a structural realignment of South African commerce, with digital platforms now embedded in everyday consumer behaviour,” according to the study.
Goldstuck explained:“The transformation of this market over the past decade has been extraordinary.Online retail has moved from being an experiment on the margins to a structuralforce in the economy. Nearly one in every R10 spent at retail will now beonline.
“What is most important is not just the pace of growth but the breadth of it. We are seeing double-digit increases across groceries, fashion, health and beauty, and value retail. The evidence is overwhelming that e-commerce is now the growth engine of South African retail.”
The economically active demographic (aged 35 to 44 and 45 to 64), which are traditionally considered older shoppers, represented the most online shoppers.
According to Goldstuck, online shopping within the 35 to 44 age group stood at 35% to 39%, while those aged 45 to 64 accounted for 30.8% to 34.2%.
“What this tells us is that online shopping is increasing in penetration among older age groups that have more discretionary spending and higher income, which is the first clue to why we’re seeing significant growth this year.”
He noted that the average amount spent by South African consumers (14.2%) online over a period of six months in 2023 was roughly R2 000. The average consumer spending in 2024 stood at 23.4%, which points to the dramatic growth in overall spend.
