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The State Of E-Commerce In South Africa In 2024

Last updated on February 26th, 2024 at 08:24 am

In recent years, E-commerce has grown dramatically.  In 2020, the coronavirus pandemic fueled an unprecedented growth rate in the e-commerce industry, and the shift toward digital shopping shows no signs of abating. While some retailers have benefitted from the convenience of online shopping, others have struggled as a result of a lack of digital presence.

E-commerce is the purchase and sale of goods or services over the internet and the transfer of money and data to complete the transaction. It is also referred to as electronic or internet commerce.

South Africa E-commerce Market Analysis

In South Africa, e-commerce is expanding at an unprecedented rate. South Africa is the 42nd largest e-commerce market, with a projected revenue of $7,217.8 million by 2023. It is predicted that the e-commerce market in South Africa will be worth more than R400 billion by 2025, with more than 1 billion transactions per year.

Consumers are becoming more comfortable with e-commerce, traditional retailers in the country are joining the party, the big players are aggressively marketing and attracting new customers, and sales are increasing yearly.

The 2020 lockdowns established online shopping as a trend in South Africa.  

According to data released by World Wide Worx and Mastercard, e-commerce will grow by 25% in 2023, with online retail exceeding 5% of total retail in South Africa for the first time. A Deloitte study found that more than 70% of South Africans shop online at least once a month for the sake of convenience.

As e-commerce grows, various digital payments such as bank transfers, cards, cash on delivery, direct delivery, electronic wallets, and so on are becoming more popular in South Africa.

Furthermore, smartphone penetration is playing a significant role in shopping trends. This is because convenience is another major reason why people prefer to shop online. They can compare reviews on a wide range of products and make an instant purchase with the click of a button. 

South Africa can continue to grow e-commerce by ensuring that deliveries are not missed by providing flexible alternatives to traditional courier services. This is an indication that this trend will continue well into the future.

General statistics of online shopping in South Africa

8% of online shoppers purchased at least once per week, a 94% increase from 2013. 

Credit cards are the most commonly used online payment method

With 24% and 20%, respectively, Johannesburg and cape town have the most active online shopping site, and visitors.

Females are the most common visitors to shopping websites, accounting for 55% of all visitors.

48% of people use their mobile phones for online banking

Biggest eCommerce stores in South Africa

Due to the large number of market participants, the level of competition in the South African e-commerce market is high. These players are implementing various strategies, mergers, and acquisitions to remain the premier strategy of players operating in the e-commerce industry to maintain their presence in the South African e-commerce market. The biggest e-commerce markets  in South Africa are as follows:

01). Takealot

Takealot is South Africa’s leading e-commerce retailer and one of the largest and most innovative e-commerce retailers on the African continent.

In February 2023, it is the most visited E-commerce and retail website in South Africa, with nearly 16.7 million monthly visits. has grown tremendously since its inception, with revenue increasing by 29% between 2021 and 2022. The store’s revenue was USD 542.22 million in 2021. Takealot has mastered the art of supply chain management and transformed the way goods are transported across the country.

02). Superbalist

Superbalist is South Africa’s leading online fashion and household goods retailer, with R1.75 billion in sales in 2021.

Customers can save up to 70% when purchasing clothing and home goods through the website or mobile app. Superbalist offers an R250.00 discount to new customers.

Nike, Fila, POLO, and other world-class brands are available at Superbalist. Furniture, lighting, travel accessories, children’s wear, men’s wear, women’s wear, and beauty brands are among the products available. All Superbalist brands are eligible for the promotion.

03). Makro

Marko app allows customers to shop online using the retailer’s App. buyers can use the Makro app to purchase items sold in Makro stores, including groceries, countrywide Makro makes deliveries, with major cities receiving them much faster.

04). Woolworths

Woolworths South Africa is a leading sub saharan African retailer that primarily sells private label products. It provides a diverse range of high-quality clothing, general merchandise, and food products with an emphasis on innovation, value, and sustainability.

05). Bid or Buy

Bidorbuy is a South African online marketplace that brings buyers and sellers together through online auctions and fixed-price sales.

It is the most popular e-commerce and shopping website in South Africa. The website receives an average of 1.9 million visitors per month, with the majority of visitors coming from South Africa. 

The company’s auction system is the best for an e-commerce store in South Africa and has helped the company to bring in over $25 million in revenue.      

The list could go on and on. It’s enormous and overwhelming how these stores are promoting e-commerce in South Africa and beyond. 

South Africa E-commerce Market Trends

#1. Change in consumer behavior

The e-commerce industry had been revolutionizing its online infrastructure for some time, but significant adoption of these features occurred during and after COVID-19. 

The many benefits that have made customers accustomed to interacting with brands from the comfort of their homes include deliveries, free returns, customization, and loyalty programs.

#2. Internet and Smartphone penetration

The internet and mobile phones are at the forefront of the e-commerce industry, which has seen a meteoric rise in business and consumerism across the country.

E-commerce is appealing in South Africa due to an increase in smartphone usage and a lack of landline infrastructure. As mobile usage grows, enormous opportunities present to online retailers.

The growing integration of e-commerce platforms with advanced technologies such as cloud computing, artificial intelligence, and predictive analytics is propelling the South African eCommerce market forward.

#3. Shop online and collect offline

This eCommerce trend has been going on for quite some time. Customers who use the click-and-collect service benefit from no or minimal additional delivery costs. In addition, it saves them time. South African retailers use this online retail strategy to reach a huge audience.

#4. Buy now pay later

Buy now, pay later is a popular interest-free payment option for customers who are unable to make large purchases. Consumers do not have to pay upfront fees and can pay off the amount in interest-free installments over a set period 

By 2024, the BNPL is expected to account for 13.6% of global e-commerce payments.

#5. Digital payment trends

Following the pandemic, South Africa’s digital payment ecosystem has experienced rapid growth. Customers use digital payments seamlessly across shopping, entertainment, groceries, food, health, and wellness – a trend that we believe will continue.

For online payments, consumers also use electronic wallet services and EFT. furthermore, with an e-wallet customers can receive, store, and use the money on their mobile phones, whether or not they have internet access.

#6. E-commerce growth via social media

Social media is the way of the future for purchasing and selling goods and services. It has the potential to become one of the leading and only places where people will shop in the future.

South Africans are very active on social media sites such as Facebook and Twitter, spending more than ten hours per day on these platforms alone. This means that if a company does not have an online presence or a well-optimized website, it may miss out on potential customers who find them through Google searches or social media platforms.

Through social commerce, social media platforms serve as a brand’s digital store, allowing customers to conduct their entire purchasing experience, from product research and discovery to payment, all on social media. Businesses can profit greatly from this eCommerce trend in the coming years if social media apps have perfect functionality.

#7. COVID 19 impact on the South Africa e-commerce industry

The Covid 19 pandemic has increased South Africa’s appreciation for online shopping. These lockdowns and stay-at-home orders highlighted the value of eCommerce consumers were forced to digital shopping.

Online shopping increased by 66% between 2020 and 2021. According to statistics, the online shopping sector will grow by 60% by 2022. As a result, in-store shopping is declining.

#8. Instant deliveries

Improving the aspect of convenience is a critical boost to expanding business online. Consumers expect quick deliveries after ordering any goods. Businesses that want to keep their customers must provide quick deliveries. Quick deliveries result in more orders, which leads to the overall growth of the E-commerce business.

This trend has improved the image of many e-commerce businesses and has elevated South Africa to the forefront of e-commerce markets alongside other rapidly growing countries such as China. 

#9. Chatbots

A chatbot is software that uses chat to simulate human-like conversations with users. Its primary function is to respond to user questions via instant messages.

A prompt response to customer inquiries and problems is critical to increasing conversion rates and sales. Small businesses, on the other hand, may find it difficult to respond to emails and instant chats 24/7. This is where automated chatbots can assist South African retailers in responding to customer questions quickly and correctly.

#10. The fashion industry has significant growth in the country

The South African eCommerce platform is the most popular fashion shopping app. Fashion companies display their products on e-commerce websites and social networking sites, attracting an increasing number of buyers. 

Every major domestic and international clothing retailer has an online presence and is heavily investing in e-commerce platforms to improve the user experience. With their mobile apps, even online-only retailers such as Superbalists and Zando have a competitive advantage over apparel specialists in the e-commerce business.

Online media enables fashion houses to distribute their products throughout South Africa with minimal financial investment.

Predictions of E-commerce in South Africa

Retailers have taken note of South Africans’ increased appetite for online shopping as they seek to provide customers with more freedom and transaction options. Following the demand, an increasing number of businesses both small and large, are establishing e-commerce as a critical sales channel.

01). Retail eCommerce sales will increase

South Africa’s e-commerce market is expected to exceed US $25 billion by 2028, growing at a CAGR of more than 14% between 2021 and 2028.

Online shopping has become one of the most popular web activities. As a result, business owners place a premium in improving the user experience. They are constantly introducing new methods to make their customers feel more at ease when shopping online.

The trend of e-commerce is predicted to continue for a long time.

02). Increase in mobile shopping

Mobile shopping has exploded in popularity in recent years. Customers from all over the world intend to buy goods and services using their smartphones or tablets. As mobile shopping grows in popularity, online retailers are following suit. People are more likely to make online purchases using their smartphones.

If eCommerce companies want to grow quickly, they must optimize their sites for mobile users.

03). Increased AI use in eCommerce

The growing integration of eCommerce platforms with advanced technologies such as cloud computing, artificial intelligence, and predictive analysis also propelled the South African eCommerce market forward.

With the assistance of artificial intelligence, eCommerce or digital shops have taken the business prospect to the next level. By incorporating AI technology into your business, you can more effectively analyze store data and buyer behavior.

The use of artificial intelligence is expected to increase.

04). E-commerce and Social Media will merge

Over the last few years, we’ve seen an increase in social commerce, with social media platforms like Instagram introducing new and exciting ways for businesses to sell.

Buyers nowadays prefer to read reviews from actual users. They follow brands and are more likely to purchase products from those brands.

As a result, Social media becomes an important marketing tool for increasing loyal advisors and maximizing sales for your company. The number of social media users and social influencers rapidly growing.

Therefore, online retailers should come up with better social marketing strategies to explore more opportunities for their stores.

Related: 3 Steps To Registering a Small Business in South Africa


The internet is the future of business, and any business that does not have an online presence is missing out on a lot of benefits. if you are an online retailer or are thinking about starting one, you should keep an eye on these trends and future predictions it will assist you in bettering your online selling strategy.

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