South Africa’s e-commerce predicted to top R130 billion in 2025

From Novelty to Necessity

Online shopping in South Africa will move even further into everyday life in 2025. A new report by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Afrika shows that e-commerce turnover is set to exceed R130 billion by the end of this year. That would give it nearly 10 percent of total retail spend in South Africa.

In 2024 the sector already grew at 35 percent, reaching R96 billion and making up 8 percent of overall retail. The growth rate in 2025 is even steeper, at about 38 percent year on year. Physical stores meanwhile have been more sluggish.

What is driving the surge

Several forces are pushing this shift:

• Consumers want convenience, speed and online shopping for groceries, fashion and beauty, and health-and-beauty goods. These segments are showing strong double-digit growth.

• Improved payment systems are building trust. Secure and seamless payment processing is making shoppers feel safe and delivering confidence.

• Online availability is growing past big cities. Middle-income households in smaller towns are now part of the growth story thanks to better connectivity and payment options.

• International players are expanding their footprint. Amazon, Shein, Temu and others have made inroads, particularly in categories like fashion, pet supplies and health.

Key players and performance

Retailers already thriving online include:

• Shoprite’s Checkers Sixty60 platform which grew by 47 percent with nearly R19 billion in online sales in the first half of 2025.

• Pick n Pay saw over 60 percent growth in its delivery and scheduled order services. Woolworths reported a 37 percent rise in fashion, beauty and home online purchases and nearly 50 percent growth in its grocery delivery service.

• Smaller retailers like Mr Price and Clicks are also posting double digit increases in their online offerings.

Challenges ahead and the maturity test

While growth is strong South Africa is at a turning point. The next phase will be about maintaining trust, improving delivery logistics and giving customers smooth checkout experiences. “Customer loyalty will come from reliable delivery and good experiences”, said Rahul Jain of Peach Payments.

Regulation such as customs, VAT rules and pricing pressures especially from global entrants still pose hurdles.

What comes after R130bn

The projections suggest that by 2027 online retail will surpass R150 billion and make up about 12 percent of all retail turnover in South Africa. That would deeply embed online shopping in how people buy everyday goods.

{Source: Bizzcommunity}

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