South Africa’s e-commerce sector is set to surpass 130 billion South African rand (US$7.5 billion) this year and capture nearly 10% of the country’s total retail market.
This is according to the new “Online Retail in South Africa 2025” report by research firm World Wide Worx, in collaboration with Mastercard, Peach Payments and Ask Afrika.
According to World Wide Worx, the study revealed that online retail grew by 35% in 2024, reaching R96 billion ($5.5 billion), representing 8% of total retail sales in the country.
“Growth has continued through 2025 at an annualized rate of 38%, far outpacing physical retail, which increased by just 2.5% in 2024 and 1.6% by mid-2025, leading to a structural realignment of South African commerce, with digital platforms now embedded in everyday consumer behavior,” World Wide Worx said.
SA retailers go digital
World Wide Worx said South African retailers across all categories are reporting robust online performance.
Shoprite’s “Checkers Sixty60” platform grew by 47% in the first half of 2025, generating nearly R19 billion ($1.1 billion) in sales.
“Pick n Pay’s on-demand and scheduled delivery services expanded by more than 60% in its most recent financial year, while Woolworths recorded a 37% increase in online sales of fashion, beauty and home products, alongside nearly 50% growth in its ‘Woolies Dash’ grocery delivery service,” the company explained.
_(1)_(1).jpg "Graph of online retail growth in SA, 2003 - 2025")
The “Online Retail in South Africa 2025” report revealed that online retail sales grew by 35% in 2024 and are on track to grow by another 35% in 2025. (Source: World Wide Worx)
The study revealed that the Foschini Group reported a 40% increase in its “Bash” platform sales, which now contribute 12% of group turnover, while Truworths’ online channel reached 6% of South African sales after growth of 38%.
“Retailers such as Mr Price and Clicks, though starting from smaller bases, also reported double-digit growth in their online divisions,” World Wide Worx reflected.
Turning point for SA retail sector
World Wide Worx CEO Arthur Goldstuck said the findings mark a turning point for South African retail.
“The transformation of this market over the past decade has been extraordinary. Online retail has moved from being an experiment on the margins to a structural force in the economy. Nearly one in every ten rand spent at retail will now be online,” Goldstuck explained.
He said it is not just the pace of the growth, but the breadth of it. The country is seeing double-digit increases across groceries, fashion, health and beauty, and value retail.
“The evidence is overwhelming that e-commerce is now the growth engine of South African retail,” Goldstuck asserted.
SA online ecosystem reflects trust and reliable payments
Mastercard South Africa Country Manager Gabriel Swanepoel highlighted the central role of payments in enabling this growth.
“The growth of online retail reflects the combination of consumer trust and reliable payments. Secure, seamless transactions are what allow retailers to scale at speed and consumers to shop with confidence,” he said.
“This combination of trust and efficiency is turning digital activity into real economic growth, and at Mastercard we are providing the rails that power this transformation,” he continued.
Swanepoel added that inclusivity remained critical to long-term growth as momentum is no longer limited to major cities.
“It is in smaller towns and among middle-income households as connectivity improves and secure payments open access. This shows how digital inclusion is expanding opportunity well beyond traditional retail hubs.”
Global entrants contribute to growth
The report also revealed that global e-commerce companies entering the South African market contributed to the growth in the sector.
“Amazon launched its South African site in May 2024 with a modest catalogue of 150,000 products, but has since expanded into groceries, pet food and health supplements,” World Wide Worx said.
The reported added that in January 2025, Amazon opened a walk-in seller center in Cape Town to onboard and support South African small and midsized enterprises (SMEs), signaling its long-term intent.
“In the fashion sector, Shein and Temu reached an estimated R7.3-billion in turnover in 2024, equal to 3.6% of the clothing, textile, footwear, and leather (CTFL) market and nearly 40% of online sales in the category,” the report explained.
World Wide Worx added, however, that stricter enforcement of customs rules and the closure of value-added tax loopholes have narrowed the price advantage of international companies, and their rapid ascent is expected to slow in 2025.
Peach Payments CEO Rahul Jain said the report confirms that South African e-commerce has reached a new level of maturity.
“Online retail has reached a stage where maturity matters as much as momentum. South African retailers are no longer only testing e-commerce; they are scaling it profitably. This report shows that the ecosystem is ready for its next phase, built on robust payments, efficient logistics and growing consumer trust,” Jain said.
“Convenience and speed brought consumers online during the pandemic, but loyalty will be built on experience. That means seamless checkout, predictable delivery and trust in every transaction. These are the areas where South African retailers are now investing, and it is why we believe the next wave of growth will be even more sustainable,” Jain continued.
The report projects that by 2027, online retail will exceed R150 billion ($8.65 billion) and account for 12% of total retail turnover, cementing its role as the structural driver of growth in South African commerce.
