How fast is South Africa's online retail market growing?

South Africa's online retail share grew from 6% of total retail in 2023 to a projected 9-10% by the end of 2025, with sales expected to surpass R130 billion. The market is expanding at over ten times the rate of physical retail, signaling a major structural shift.

Which local retailers are leading online sales growth?

Grocery retailers like Shoprite's Checkers Sixty60 and Woolworths Dash show explosive growth. In apparel, The Foschini Group (TFG) and Truworths are leading. Their success is driven by rapid delivery, superior mobile app experiences, and heavy investment in logistics to ensure reliability and convenience.

What are the biggest demographic shifts in online shoppers?

The market is maturing beyond a youth focus, with the 35-44 age group showing the strongest growth. While high-income users still dominate spend, middle-income consumers are the fastest-growing cohort. Retailers should target this group with offers focused on convenience and reliability, not just low prices.

How have Amazon, Shein, and Temu impacted local retail?

International platforms have intensified competition. Shein and Temu captured nearly 40% of online clothing sales in 2024 before tax loopholes were closed. Amazon's 2024 launch spurred immediate promotions from local rivals and set a new benchmark for delivery and service, signaling long-term competitive pressure.

What is the main reason shoppers abandon their carts?

While declined cards were a top issue in the past, the main drivers for cart abandonment are now a long, complicated checkout process and unexpected shipping fees. This shows retailers have improved payment reliability, but now need to focus on optimizing the user experience at checkout.

Which new technologies are retailers adopting the fastest?

Adoption of mobile wallets, Instant EFT/PayShap, and Buy Now, Pay Later (BNPL) is growing steadily. The most common planned use of AI is for marketing and content generation, as market leaders have proven its effectiveness for personalization, pricing, and promotions.

Do South African consumers trust local or international sites more?

Consumers trust local platforms significantly more, with 46% preferring them versus only 10% trusting international sites more. Shoppers use international platforms for better deals but are often deterred by long delivery times and customs fees, which are key advantages for local retailers.

Which online product categories are growing the fastest?

Groceries have consistently been the fastest-growing online category, with clothing also seeing a major shift to digital channels. More recently, the Health and Beauty sector is showing strong momentum, with retailers like Clicks and Dis-Chem reporting significant growth in their online sales.

How profitable are online stores for South African retailers?

E-commerce is highly profitable for most. In 2024, nearly 74% of retailers reported that their online operations were profitable, with 42% describing them as "very profitable." This indicates a high level of operational maturity in the market.

What is the future outlook for physical stores in South Africa?

The data signals a future where physical stores must integrate with digital channels to stay relevant. With online sales growing over ten times faster than sluggish physical retail, a hybrid, omnichannel model using stores for payments, collections, and returns is the most likely path to success.

2025 South African Online Retail Report

Name: Online Retail in South Africa 2025
Creator: Peach Payments
License: https://www.peachpayments.com/legal-doc/privacy-cookie-policy

Get exclusive insights into the future of South African ecommerce landscape with the 2025 South Africa Online Retail Report, prepared by Arthur Goldstuck and sponsored by Peach Payments, Mastercard, and Ask Afrika.

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The study is conducted in partnership with expertise from industry leaders, including:

Convenience is now the benchmark, Trust is the currency, and Payments are the bridge.

Online retail in South Africa is no longer an alternative - it’s a core part of the economy. The 2025 report shows how innovation, trust, and customer experience continue to drive growth, and why businesses that embrace digital-first strategies will lead the next wave of retail.

- Rahul Jain, CEO & Co-Founder, Peach Payments

ONLINE SALES IS 8% OF TOTAL RETAIL SALES |

Online Retail Set to Surpass R130 Billion in 2025

Let's dive deeper into the report

Online retail is now a structural force, poised to exceed sales of R130 billion by late 2025.

Local payments are king, with Instant EFT/PayShap showing meaningful traction at 40.8% usage

Consumer trust strongly favours local platforms, with 46% of consumers trusting them more than international ones

Checkout friction and shipping fees are the top reasons for cart abandonment, cited by 37.3% and 31.3% of retailers respectively

The industry is confident and profitable; 73.6% of retailers report positive returns, and 74.2% expect growth over 40% in 2025

WhatsApp is a key engagement tool, but payments lag as 38.8% of retailers cite integration issues as a key blocker

Digital-first marketing is maturing, with a notable surge in search engine marketing to 72.1%

There is a gap between the desire for security and adoption; 91% rate security as "very important," but only 2.5% use biometrics

Ask these FAQs to the AI Avatar and learn key insights about the report

Curious about what’s inside the report? Use these FAQs to guide your conversation with our AI Avatar, and uncover valuable insights and statistics from the 2025 South African Online Retail Report.

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Growth & Market Outlook 

How has the share of online retail versus total retail evolved from 2023 to 2025, and when will South Africa realistically hit the 10% mark?

Competitive Landscape 

Which retailers have shown the most consistent online growth across the three reports, and what lessons can smaller players take from their strategies?

Consumer Behaviour

What demographic shifts in online shoppers are most significant between 2023 and 2025, and how should retailers adapt their targeting?

Payments & Checkout 

What are the top reasons for cart abandonment over the past three years, and which solutions are proving most effective in reducing them?

Global Influence

How has the entry of Amazon.co.za and platforms like Shein/Temu impacted South African e-commerce since 2023?

Operational Challenges

What are the most persistent pain points for online retailers according to the three reports, and how are industry leaders overcoming them?

Technology & Innovation

Which technologies (AI, mobile wallets, BNPL, etc.) have shown the steepest adoption curve from 2023 to 2025, and what’s next?

Marketing & Customer Acquisition

Which marketing channels have gained the most traction among South African e-commerce businesses since 2023, and which ones are losing relevance?

Profitability & Performance

How has site profitability trended across the reports, and what differentiates the retailers that moved from breakeven to high profitability?

Future Forecasting

Based on the three years of data, what are the strongest signals for where South African e-commerce will be by 2030?

A Closing Message From Our CEO

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