The State of E-Commerce in South Africa 2025

The State of E-Commerce in South Africa 2025

The Digital Shopping Boom

Over the past decade, South Africa’s retail landscape has undergone a massive transformation. Shopping no longer begins with a trip to the mall — it starts with a tap on a smartphone screen. The country’s e-commerce sector has matured from a niche convenience for tech-savvy buyers into a multi-billion-rand industry that is reshaping how South Africans purchase everything from clothing and electronics to groceries and services.

While online shopping had already been on the rise pre-2020, the COVID-19 pandemic acted as a turbocharger. Lockdowns, social distancing, and changing consumer behaviour created a surge in online transactions. Between 2020 and 2022 alone, the sector experienced an estimated 66% growth in total online retail value.

Fast forward to 2025, and the e-commerce market in South Africa is projected to exceed R70 billion in annual revenue, with over 35% of urban adults making online purchases regularly. Internet penetration, now over 75%, combined with more affordable data and expanding mobile payment solutions, has placed South Africa firmly on the global e-commerce map.

But as the pie grows, so does the competition. Both homegrown champions and global heavyweights are fighting for dominance in a market with unique challenges and opportunities.

The Current Leaders: Who’s Winning the Market?

Takealot – The Local Giant

Takealot has long been the face of e-commerce in South Africa. Since its 2014 merger with Kalahari.net and its subsequent investment from Naspers (via Prosus), Takealot has built a network that is hard to beat. With its diversified product range, extensive warehousing, and strong logistics arm, the company controls an estimated 40% market share of South Africa’s online retail.

Its ecosystem includes Superbalist (fashion) and Mr D (food delivery), allowing it to leverage cross-platform customer acquisition. But 2025 presents new threats. Persistent rumours of a full Amazon rollout — beyond the initial limited launch — have investors questioning Takealot’s ability to maintain dominance.

Amazon South Africa – The Disruptor

Amazon officially entered the South African market in 2024, and while its footprint is still expanding, its presence has shifted the competitive landscape. Amazon’s global reputation for speed, variety, and aggressive pricing makes it a formidable opponent.

For now, Amazon SA’s catalogue is smaller than Takealot’s, but the company is targeting high-demand categories like electronics, home appliances, and imported goods. Its Prime membership, with free delivery and streaming services, could become a game-changer if paired with localised pricing and warehouse infrastructure.

Supermarket Hybrids – Checkers Sixty60 & Pick n Pay asap!

While these are technically grocery delivery platforms, their rapid expansion into general goods (cleaning products, electronics, small appliances) makes them part of the broader e-commerce battle. Checkers Sixty60 has become one of South Africa’s most downloaded apps, appealing to a fast-growing “instant delivery” culture.

Niche and Specialist Stores

Other players are carving out loyal followings in their niches:

• Yuppiechef – premium kitchen and homeware.
• Zando – fashion and lifestyle.
• Loot – general goods, with a price-competitive approach.
• Social-media-first stores — often run by small businesses using Instagram Shops, TikTok Shop, and WhatsApp Business.

Key Trends Driving Growth

Mobile-First Shopping

Over 70% of e-commerce transactions in South Africa now take place on mobile devices. Low-cost smartphones, faster 4G/5G rollout, and mobile-optimised payment systems like SnapScan, Ozow, and Apple Pay have brought millions into the online marketplace.

Social Commerce & Influencer-Led Sales

Platforms like Instagram and TikTok aren’t just for scrolling anymore — they’re driving direct sales. Influencers, especially in fashion, beauty, and lifestyle categories, are becoming digital storefronts. This “social trust factor” is particularly powerful among younger buyers.

Buy Now, Pay Later (BNPL) Revolution

Services such as Payflex, MoreTyme, and Float are allowing South Africans to split payments into interest-free instalments. This has proven especially popular among Gen Z and Millennials, who are more debt-averse but still demand flexibility.

AI & Personalised Recommendations

Machine learning is increasingly being used to suggest products, predict purchase behaviour, and optimise stock levels. Takealot, for instance, has integrated AI-driven product suggestions into its app, increasing basket sizes by up to 15% in pilot markets.

WhatsApp as a Business Tool

In South Africa, WhatsApp has become more than a messaging app — it’s a sales channel. From small township spaza shops to boutique clothing labels, businesses are using WhatsApp catalogues, broadcast lists, and instant support to close sales.

Challenges Facing SA E-Commerce

Logistics Bottlenecks

Despite improvements, delivery delays remain a persistent problem. Geographic spread, underdeveloped rural infrastructure, and unpredictable traffic mean that same-day delivery is still a luxury in many areas.

Payment Fraud & Consumer Trust

Payment scams and phishing attacks have created caution among new online buyers. E-commerce players must continuously invest in cybersecurity and educate customers on safe payment practices.

Load Shedding Disruptions

Power cuts don’t just affect customers — they impact warehouses, payment processing, and delivery networks. Many businesses have had to invest in backup power just to keep operations running during peak shopping periods.

Global Competition

Cheaper goods from international platforms like Shein, Temu, and AliExpress are drawing price-sensitive shoppers away from local stores, despite longer shipping times.

Small Businesses Fighting Back

The rise of user-friendly platforms like Shopify, WooCommerce, and local solutions such as Shopstar is enabling small entrepreneurs to launch e-commerce stores with minimal technical skills.

Many small SA brands are thriving by:

• Offering hyper-localised products (e.g., handmade Zulu beadwork, township streetwear labels).
• Building community-driven marketing through social media groups and influencer partnerships.
• Leveraging fast WhatsApp support for personalised service.

One example is a Cape Town-based skincare brand that started on Instagram and now ships nationwide, using same-day courier services in metro areas and partnering with Takealot Marketplace for national reach.

Future Outlook: What’s Next for the Industry?

Between now and 2030, South Africa’s e-commerce market is projected to double in value. Several factors will shape this growth:

• Infrastructure investments in logistics and payment systems.
• Cross-border trade with the rest of Africa, boosted by the African Continental Free Trade Area (AfCFTA).
• Emerging tech like drone deliveries, augmented reality fitting rooms, and more advanced AI-driven shopping assistants.

But perhaps the biggest wildcard will be how local players adapt to Amazon’s long-term presence. History shows that Amazon rarely settles for second place — and if it scales aggressively, Takealot and smaller competitors will be forced to innovate or risk losing market share.

E-commerce in South Africa is no longer a side note in the retail industry — it’s the main event. The battle between Takealot’s homegrown dominance, Amazon’s global muscle, and a swarm of niche and hybrid competitors will define the sector’s next chapter.

For consumers, this competition means better prices, faster deliveries, and more choice. For businesses, it means one thing: adapt quickly, or get left behind.