Despite increased competition from international e-commerce platforms, South Africans still prefer shopping on local e-commerce sites — with Takealot leading the pack. The country's total online sales are expected to surpass R130bn by year end.
Nearly half of shoppers say they frequently use South African platforms, ahead of international marketplaces at 9%, according to a report compiled by World Wide Worx. A majority — 56% — have never shopped on Chinese e-commerce platforms Shein or Temu, and only 5% report weekly purchases from these sites, the report said.
The barriers to offshore adoption remain delivery times, customs charges and trust, the report said. It found that 77% of South Africans buy from local platforms at least monthly, with 46% trusting domestic sites more, 36% trusting local and international platforms equally, and only 10% trusting international players more.
Takealot is the primary destination by a wide margin (45%), almost three times Checkers's popular Sixty60 delivery service at 16%, and far ahead of other players.
“Takealot’s dominance alongside a strong grocery tier underscores how everyday needs and dependable fulfilment shape behaviour,” said World Wide Worx MD Arthur Goldstuck.
Despite the recent entry of Chinese platforms such as Shein and Temu and American giant Amazon, international platforms remain peripheral for most respondents. A majority never shop on them, and regular users are a small minority.
The biggest barriers are logistical and cost-related — slow delivery, customs fees and shipping charges. Amazon launched its South African site in 2024 with a modest initial catalogue but has since expanded into groceries, pet food and health supplements.
In the fashion space, Shein and Temu made rapid inroads in 2023—2024, reaching an estimated R7.3bn in turnover and almost 40% of online clothing sales. However, the closure of tax loopholes, stricter customs enforcement and the resilience of local retailers have moderated their impact.
“Their growth is now expected to slow, suggesting coexistence with, rather than displacement of, established players,” said Goldstuck.
“Amazon, Shein and Temu have accelerated both competition and innovation. Yet rather than displace local players, their presence has sharpened the competitive landscape and raised consumer expectations,” said Gabriël Swanepoel, country manager for Southern Africa at Mastercard.
About 65.2% of business respondents have not yet experienced direct disruption from these global entrants. At the same time, 34.8% of respondents reported some degree of impact. Within this group, 12.4% described the effect as moderate, while 7.5% each reported it as minor, significant or very significant.
Nearly one in every R10 spent at retail will now be online
— Arthur Goldstuck, World Wide Worx MD
Global entrants will add pressure but regulatory changes and local resilience will limit their dominance, said Goldstuck.
Clothing dominates online purchasing at 30.2%, far ahead of every other category. Groceries are a clear second at 18.4%. Computer hardware and accessories come in at 16.6% and gifts at 16.4%, followed by Lotto (15.3%), computer software/games (15.2%), and footwear (15.1%). Holiday and travel bookings are also sizeable at 14.9%.
Edgars leads sites used to purchase clothes at 3.8%, followed by Shein at 3% and Mr Price/MRP at 2.4%, followed by Superbalist, Foschini and Markhams.
Takealot is the most used platform for buying furniture, homeware and gifts. However, the report says the fastest and most visible growth remains in grocery retail, where the shift to digital has been accelerated by the adoption of on-demand shopping apps.
Checkers Sixty60 is the preferred destination for online groceries at 6.7%, followed by Pick n Pay, Woolworths and Shoprite, with Game coming in last. For toiletries, Dis-Chem and Clicks are favourites. In the year to June, Shoprite said sales at Sixty60 rose 47.7% to R18.9bn.
The most active online shoppers are “higher affluent” aged 25-35, but uptake among middle-aged and older groups has increased significantly since the Covid pandemic. Online shopping is no longer confined to metropolitan elites; adoption is growing in secondary cities and peri-urban areas, helped by improved logistics networks and mobile payment penetration. Most online shoppers (55.9%) use mobile devices to make purchases. Laptops are a clear second at 29.4%, with desktops at 12.5% and tablets at 11.8%.
“The picture is firmly mobile-first, with computers and tablets supporting rather than leading,” the report says.
“Online retail has moved from being an experiment on the margins to a structural force in the economy. Nearly one in every R10 spent at retail will now be online,” said Goldstuck. “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.”
Online retail in South Africa is expanding at more than 10 times the rate of physical retail and is expected to account for at least 12% of the national market by 2027.
“For businesses this demands that digital is placed at the centre of strategy,” said Swanepoel. “For policymakers and ecosystem partners, it calls for continued investment in infrastructure, secure rails and forward-looking regulation. And for consumers it promises ever greater convenience, affordability and choice.”
Rahul Jain, CEO of Peach Payments, said the report confirms that South African e-commerce has reached a new level of maturity.
“South African retailers are no longer testing e-commerce; they are scaling it profitably. This report shows that the ecosystem is ready for its next phase, built on robust payments, efficient logistics, and growing consumer trust.”
Jain believes the focus for the next few years will be on deepening consumer relationships.
“Convenience and speed brought consumers online during the pandemic, but loyalty will be built on experience. That means seamless checkout, predictable delivery and trust in every transaction. These are the areas where South African retailers are now investing, and it is why we believe the next wave of growth will be even more sustainable.”
The report projects that by 2027 online retail will exceed R150bn and account for 12% of total retail turnover. In 2023 it was R71bn, and last year it expanded 35% to an estimated R96bn, representing 8% of total retail sales.
Current trajectories indicate that by the end of 2025 online sales will surpass R130bn and approach 10% of the national market.
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