South Africa E-Commerce Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South Africa E-Commerce Market Trends and Insights

Rising Mobile-Only Shoppers in Township Economies Fueled by Low-Cost Android Handsets

Entry-level smartphones priced below ZAR 1,500 (USD 91.54) have democratized access for first-time internet users in Soweto, Khayelitsha, and Umlazi. These shoppers generated 71.42% of B2C transactions in 2025, with average session lengths 40% shorter than desktop sessions, signaling comfort with streamlined, mobile-optimized checkouts. Takealot’s township initiative recruited 2,500 personal shoppers by late 2025 to assist low-literacy users, and WhatsApp catalogs have flourished as informal sales channels where peer recommendations carry more weight than brand advertising.^{[1]Independent Communications Authority of South Africa, “Spectrum Licensing and 5G Rollout,” ICASA.org.za}

Expansion of Domestic Logistics Networks into Rural and Township Last-Mile

Partnerships between e-commerce platforms and third-party logistics firms have pushed last-mile coverage into 240 towns, delivering 1.8 million parcels monthly at 98.5% on-time performance. Smart-locker deployments at taxi ranks reduced failed deliveries by 30%, and Checkers Sixty60 placed dark stores within 10 kilometers of 85% of urban households, extending coverage to peri-urban nodes.^{[2]DSV, “E-Commerce Logistics Solutions in South Africa,” DSV.com}

Rapid Adoption of BNPL by Gen-Z Consumers Boosting Average Order Value

BNPL penetration grew fastest among shoppers aged 18-27, lifting average order value to ZAR 1,850 (USD 112.89), 67% higher than cash-on-delivery. Payflex surpassed 1.2 million active users in 2024 with default rates below 4%, demonstrating effective risk segmentation outside traditional credit bureaus. Fashion marketplaces embedding four-installment plans converted browsers who previously abandoned carts at payment stage.^{[3]Payflex, “Buy Now Pay Later Solutions,” Payflex.co.za}

Entry of Global Fast-Fashion Marketplaces Catalyzing Cross-Border Volumes

Shein and Temu seized 37.1% of online apparel revenue in 2024 by leveraging direct-from-factory supply and price points that outweighed a 45% import levy. SARS removed the small-parcel VAT exemption, yet consumers continued absorbing additional costs for greater assortment breadth, signaling limited price elasticity in fast-fashion demand.^{[4]South African Revenue Service, “Customs and Excise Policy Updates,” SARS.gov.za}

Persistent Digital Payment Fraud Driving Cart Abandonment

Card-not-present fraud losses reached ZAR 1.2 billion (USD 0.073 billion) in 2024, prompting banks to deploy biometric authentication and device fingerprinting. Yet older and rural consumers lag in adopting these safeguards, keeping cart abandonment above 20% in high-value categories. Regulations mandate breach disclosure within 72 hours, but small merchants lack resources for end-to-end encryption, perpetuating consumer distrust.

High Reverse-Logistics Cost for Fashion Returns

Return expenses consumed up to 19% of order value in 2024, with Superbalist’s 26% return rate contrasting Shein’s sub-3% due to buyer-borne shipping fees. Domestic players trialed augmented-reality fitting tools, yet adoption remains below 5% of transactions on budget devices. The absence of pooled return networks forces retailers to absorb premium courier tariffs, hindering margin improvement.

Segment Analysis

By Device Type (B2C): Smartphones Cement Transactional Primacy

Smartphones generated 71.42% of 2025 B2C sales and will advance at 9.03% CAGR to 2031, extending their lead as the device of choice for the South Africa e-commerce market. The South Africa e-commerce market size attached to mobile channels widens every quarter as entry-level Android handsets drop below ZAR 1,500 (USD 91.54). Platforms prioritizing lightweight code, offline carts, and one-tap payment convert at rates 30% higher than rivals relying on heavy scripts. Desktop transactions, 28% of sales in 2025, persist in high-consideration categories but continue ceding share as multi-screen shoppers finalize purchases on mobile.

5G coverage in Johannesburg, Cape Town, and Durban by mid-2025 unlocked video-rich discovery and live-stream shopping formats once bandwidth-constrained. Takealot’s personal-shopper program for mobile-only users and the uptick in WhatsApp catalog commerce underscore the cultural shift toward handheld retail. Tablet, smart-TV, and console commerce collectively represent less than 1% of sales, constrained by limited native applications and payment integrations.

Note: Segment shares of all individual segments available upon report purchase

By Payment Method (B2C): BNPL Gains from Credit-Access Gaps

Credit and debit cards retained 44.68% value share in 2025, but BNPL growth at 11.23% CAGR is set to outpace all alternatives. The South Africa e-commerce market size linked to installment payments hinges on algorithmic credit scoring that circumvents traditional bureau data, widening access for unbanked youth. Digital wallets captured 18% of sales through tokenized security and QR-code ubiquity, while cash-on-delivery endured among first-time buyers wary of card fraud.

Regulatory ambiguity allows BNPL providers to avoid National Credit Act scrutiny for now, lowering compliance costs and enabling rapid product iteration. Fashion and electronics merchants report 60% higher average order values when BNPL is selected, illustrating its role in demand stimulation. Expect wallet and BNPL providers to converge through shared loyalty ecosystems, further squeezing interchange fees.

By Product Category (B2C): Quick-Commerce Propels Food and Beverages

Fashion and apparel held 24.67% revenue share in 2025, buoyed by Shein and Temu’s 37.1% hold on online clothing sales. However, food and beverages is forecast to grow at 11.68% CAGR, the fastest of any category, as dark-store networks slash fulfillment times to under 60 minutes in major metros. The South Africa e-commerce market size attached to groceries expanded sharply after Checkers Sixty60 recorded ZAR 18.9 billion (USD 1.15 billion) sales in 2024 and extended web ordering in 2025.

Electronics, beauty, and furniture followed in the 12-16% share range, each benefiting from influencer marketing and warranty bundling. Toys and DIY remain seasonal, while niche categories such as pet care gain traction through curated subscription boxes. The 45% duty on fashion imports has not curbed demand, highlighting consumer willingness to absorb higher landed costs for greater assortment breadth.

Note: Segment shares of all individual segments available upon report purchase

By Business Model: B2B Platforms Accelerate Procurement Efficiency

B2C sales dominated 82.34% of the South Africa e-commerce market in 2025, reflecting mature consumer platforms, yet B2B transactions are forecast to grow at 10.87% CAGR through 2031. The South Africa e-commerce market size for B2B procurement is benefiting from wholesalers digitizing catalogs and offering real-time stock visibility. Makro’s 2024 portal reduced procurement lead times by 40%, and Amazon’s ZAR 1 monthly promotional seller fee attracted 10,000 micro-merchants by mid-2025, broadening SKU diversity. Small retailers view B2B marketplaces as a hedge against distributor mark-ups, a trend likely to erode traditional channel margins. Price transparency and embedded logistics are key advantages, while the Competition Commission’s mandate on Takealot is fostering a more level playing field.

Steady B2C expansion at 8.54% CAGR still underpins platform revenues, driven by BNPL-enabled spending among unbanked consumers and by deeper smartphone penetration in townships. Household reliance on online grocery delivery surged after Checkers Sixty60 achieved 100 million orders, proving the viability of quick-commerce economics. As discretionary categories mature, value migration toward subscription-based replenishment and private-label goods will shape competitive moats across both models.

Geography Analysis

Gauteng, Western Cape, and KwaZulu-Natal together generated 78% of gross merchandise value in 2025, mirroring income concentration and logistics infrastructure density. Gauteng leads the South Africa e-commerce market with multiple fulfillment hubs in Johannesburg and Pretoria, and with smartphone penetration above 85%. The Western Cape’s 22% share is anchored in Cape Town’s tech-savvy consumer base that rapidly adopts BNPL and digital wallets. KwaZulu-Natal maintains roughly 15% share, although persistent load-shedding has pressed fulfillment centers to install diesel generators, inflating operating costs by up to 12%.

Rural provinces such as Eastern Cape and Limpopo are narrowing the digital divide as logistics players extend coverage. DSV’s 98.5% on-time delivery across 240 towns illustrates operational gains achievable through network densification, while smart-locker installations at taxi ranks enhance pickup convenience for commuters. ICASA’s allocation of mid-band spectrum has lowered data tariffs by 25% since 2023, though 5G rural roll-out still trails urban adoption.

Cross-border orders from Botswana, Namibia, and Lesotho contributed 3-5% of platform revenues in 2025. Customs throughput improved after the September 2024 single-window system went live, yet delivery lead times remain 2-3 days longer than domestic shipments owing to security screening and currency-conversion friction.