How E‑commerce Is Revolutionising Business Growth in South Africa

Kanewebb
Jul 15
2 min read

In South Africa's fast-evolving business landscape, e-commerce has become more than just an option — it's a vital strategy for survival and growth.

Hands on a laptop with architectural plans, surrounded by a notebook, ruler, pencils, plant, and coffee on a marble desk background. — Photo by Mikhail Nilov

Market Scale & Forecast

In 2023, South Africa’s online retail sector reached R71 billion (~US$3.8 billion), up 29% year‑on‑year, accounting for about 6% of total retail sales. Projections show this share rising to around 10% by 2025–2026 . Meanwhile, broader forecasts estimate the e‑commerce market at USD 38.5 billion in 2025, with steady annual growth of ~9–10% expected through the rest of the decade.

Mobile-First & Digital Payments

Smartphones now account for over 70% of e‑commerce transactions, with B2C still dominating the space. Growth in fintech solutions—especially Buy Now Pay Later (BNPL) services—continues to drive both sales volume and customer reach.

New Entrants & Intensified Competition

Global players like Amazon (launched in May 2024), Shein, and Temu have joined the fray, pushing local retailers to innovate. Retail startups like Zando have even launched international-focused offerings to compete.

Expanded Grocery & On‑Demand Services

South African grocers have been rapidly evolving—services like Checkers’ Sixty60 jumped 63% in late‑2023, and Pick n Pay grew their online grocery sales by 76%. Checkers has since expanded same-day delivery to general merchandise with a 60‑minute window in Cape Town, ahead of a national rollout.

Security & Logistics Challenges

Rapid e‑commerce growth has escalated last‑mile delivery security risks—up to 20–25 hijack incidents daily—forcing retailers to invest heavily in logistics protection.

SME Enablement & Digital Democratization

E‑commerce has become a powerful equalizer for SMEs—lower barriers to entry, access to large audiences, and digital payment and delivery infrastructure have made scaling online more viable than ever.

"Test the waters – learn and fail fast. Every digital transformation journey will have its challenges, but organisations should focus on the learnings to create an unmatched tailored experience."