South Africa E-Commerce Market Size (2024 - 2029)

The market size of e-commerce in South Africa is experiencing significant growth, largely due to the restrictions placed on traditional retail outlets. The surge in online shopping has been facilitated by the proliferation of smart devices, increased internet connectivity, and the integration of advanced technologies such as cloud computing and artificial intelligence into e-commerce platforms. Digital payment methods are becoming increasingly popular, with electronic wallets allowing consumers to make purchases with or without internet access. The convenience of online shopping, coupled with the increased use of smartphones, is driving this trend. The lockdowns in 2020 have further highlighted the value of e-commerce as consumers were forced to find digital shopping alternatives.

Market Size of South Africa E-Commerce Industry

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South Africa E-Commerce Market Size
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

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*Disclaimer: Major Players sorted in no particular order

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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.

South Africa E-commerce Industry Segmentation

E-commerce refers to any form of commerce that takes place online. This is defined as buying and selling goods over the internet on any device. E-commerce is typically categorized into two different models, B2B and B2C, based on the type of participants involved in the transaction. The market studied includes segmentation based on the categories based on different product types, and also the market studied briefs about the COVID-19 impact on the country and current ongoing e-commerce trends as well.

By B2C ecommerce
Market size (GMV) for the period of 2017-2027
Market Segmentation - by Application
Beauty and Personal Care
Consumer Electronics
Fashion and Apparel
Food and Beverage
Furniture and Home
Others (Toys, DIY, Media, etc.)
By B2B ecommerce
Market size for the period of 2017-2027

South Africa E-Commerce Market Size Summary

The e-commerce sector in South Africa is experiencing unprecedented growth due to restrictions on traditional retail outlets and the surge in online shopping. The market is predicted to expand further over the forecast period. This growth has been driven by the proliferation of smart devices, the expansion of internet connectivity, and the integration of e-commerce platforms with advanced technologies such as cloud computing and artificial intelligence. Digital payments, including bank transfers, cards, cash on delivery, direct delivery, and electronic wallets, have become increasingly popular. The convenience of online shopping and the wide range of products available have also contributed to the growth of the e-commerce market in South Africa. The fashion industry in South Africa has seen significant growth due to the progression of digitization. Major domestic and international clothing retailers have an online presence and are investing heavily in e-commerce platforms to improve user experience. The increase in smartphone penetration has also boosted the market for online shopping. South African retailers are learning from companies that have successfully adapted to hybrid models, investing in online experiences to deliver a better customer experience. The country is witnessing a rise in supply with growing internet penetration and a mobile-first population, setting the stage for a fashion e-commerce boom. Furthermore, the use of digital tools can help African fashion brands pursue global success.

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South Africa E-Commerce Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Key market trends and share of e-commerce of total Retail sector

    4. 1.4 Impact of COVID-19 on the e-commerce sales

  2. 2. Market Segmentation

    1. 2.1 By B2C ecommerce

      1. 2.1.1 Market size (GMV) for the period of 2017-2027

      2. 2.1.2 Market Segmentation - by Application

        1. 2.1.2.1 Beauty and Personal Care

        2. 2.1.2.2 Consumer Electronics

        3. 2.1.2.3 Fashion and Apparel

        4. 2.1.2.4 Food and Beverage

        5. 2.1.2.5 Furniture and Home

        6. 2.1.2.6 Others (Toys, DIY, Media, etc.)

    2. 2.2 By B2B ecommerce

      1. 2.2.1 Market size for the period of 2017-2027

South Africa E-Commerce Market Size FAQs

The South Africa E-Commerce Market is projected to register a CAGR of 12.5% during the forecast period (2024-2029)

Superbalist.com, Takealot Online (Pty) Ltd., Decathlon, Sofresh and Care to beauty are the major companies operating in the South Africa E-Commerce Market.

E-commerce in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)