Natalie Cowling
Research Expert South Africa
E-commerce in South Africa - statistics & facts
Online commerce has become a vital element of retail. In South Africa, the e-commerce industry has been growing exponentially, with ever more businesses embracing the digital market. One major driver behind this growth is the user rate of the internet. In 2023, over 76 percent of South Africans used the internet. This is projected to grow by around 22 percentage points by 2029. Furthermore, the expected number of e-commerce users in the country are predicted to follow an increasing trend. According to Statista’s Digital Market Outlook estimates, approximately 11.7 million e-commerce users in South Africa are forecast to be registered in 2025, increasing to 21.52 million users by 2029.
Most visited marketplaces
Within the e-commerce industry in South Africa, there were two main sectors: fashion and toys, hobbies, and DIY. In total, fashion accounted for 32 percent of the total value within the e-commerce market in 2022. Toys, hobbies, and DIY followed at 27 percent, whereas electronics and media, furniture and appliances, as well as food and personal care, registered 18, 15, and 8 percent, respectively. Furthermore, according to Statista’s Global Consumer Survey, Takealot.com (various categories) and SHEIN were the most popular online shops as of March 2024. 66 percent of the consumers indicated to have recently bought something from Takealot.com, whereas 47 percent did so from SHEIN. Moreover, within the overall ranking, Takealot and Superbalist form part of a larger multinational: Takealot Group. In 2023, their revenue decreased slightly, dropping to 808 million U.S. dollars compared to 827 million U.S. dollars in the previous year.Home delivery is the main driver behind online shopping
For South Africans shopping online, most did their purchases on a smartphone or laptop. According to a Statista survey, 77 percent of the respondents used their mobile phones to purchase their products, whereas over half of the South African consumers indicated doing so on their laptops. In comparison, just five percent mentioned using smart speakers (e.g. Amazon Echo) or a streaming device (e.g. Chromecast). Moreover, with smartphones, consumers can purchase their items wherever they are and get them delivered to their chosen address. This is also one of the main drivers of online purchases in South Africa. Just over 70 percent of the respondents mentioned “direct delivery to my home” as a main driver of online shopping in 2022. Some 63 percent indicated buying online to avoid crowds, whereas roughly 45 percent did so because of lower prices. However, with online orders, there are often items that need to be returned. In 2023, most returned items within the country were clothing, followed by shoes, and accessories.Payment methods
When making online purchases, there are many payment methods available. As of March 2024, most South African consumers indicated to have used their debit card with 58 percent, whereas online payment services (i.e. Paypal) and credit card followed with 48 and 30 percent, respectively. Just 10 percent mentioned having used invoices as their method of payment. Furthermore, the most used brand for online payments is Paypal. The American multinational home in financial technology was used by 80 percent of the respondents as a payment service between April 2023 and March 2024.On the otherhand, Ozow, which is a fintech company based in South Africa, had a usage rate of 34 percent.
