Market Size of South Africa E-Commerce Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
South Africa E-commerce Market Analysis
E-commerce is growing at an unprecedented rate in South Africa. According to Business Insider, this surge was mostly influenced by restrictions placed on traditional retail outlets, which resulted in a 30% fall in in-store shopping. While several sectors of the economy were hamstrung by various degrees of lockdown in 2020, internet retailers saw a surge in sales as South Africans opted for home delivery over shopping malls and stores. Further, the market is expected to grow at a CAGR of 12.5% during the forecast period (2022 - 2027).
- The proliferation of smart devices and the expansion of internet connectivity has created an e-commerce platform. Apart from that, increasing integration of e-commerce platforms with various advanced technologies such as cloud computing, artificial intelligence, and predictive analytics is also driving the growth of the South African e-commerce market.
- Based on the payment mode, various digital payments such as bank transfers, cards, cash on delivery (COD), direct delivery, electronic wallet, etc., are becoming more popular in South African countries.
- Consumers also use electronic wallet services and EFT for online payments. Moreover, with an e-wallet, customers can receive, store, and use the money on their mobile phones with or without internet access. South Africans are familiar with online shopping, experience the convenience of online shopping, and may shop online more often in the future.
- Smartphone penetration is also playing a very important role in shopping trends. This is due to the fact that convenience is another major reason why people choose to shop online. They have access to a wide range of products to compare reviews and can instantly satisfy their purchase with the click of a button. With flexible alternatives to traditional courier services, South Africa can continue to grow e-commerce by ensuring that deliveries are not missed.
- E-commerce is one of the few sectors in COVID-19 where consumer interaction has increased. In South Africa, the lockdowns in 2020 have made online shopping a trend. These lockdowns or home orders highlight the value of e-commerce as consumers are forced to stay home and find other digital shopping options in South Africa.
