South Africa’s online retail market is projected to exceed $7 billion in 2025, accounting for nearly 10% of the country’s total retail sales, according to the Online Retail in South Africa 2025 report by World Wide Worx in partnership with Mastercard, Peach Payments, and Ask Afrika.
The study reveals that e-commerce sales surged by 35% in 2024, reaching $5.2 billion and representing 8% of overall retail spending.
Growth has continued into 2025 at an annualised rate of 38%, far outpacing physical retail, which recorded a modest increase of 2.5% in 2024 and just 1.6% by mid-2025.
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Arthur Goldstuck, CEO of World Wide Worx, described the findings as a major shift in South African retail:
“Nearly one in every ten rand spent at retail will now be online. This is no longer just an experiment, it’s a structural force in the economy.”
Retailers See Strong Online Growth
Several retailers are benefiting from this boom: Shoprite’s Checkers Sixty60 delivery app recorded a 47% rise in the first half of 2025, generating nearly $1 billion in sales.
- Pick n Pay reported over 60% growth in its delivery services in 2024.
- Woolworths posted a 37% increase in online fashion, beauty, and home sales, along with almost 50% growth in its Woolies Dash grocery delivery service.
- The Foschini Group said online sales through its Bash platform grew 40%, making up 12% of its total revenue.
- Truworths, Mr Price, and Clicks also reported double-digit increases in online sales.
Digital Payments and Infrastructure Driving Adoption
Industry leaders stress that secure digital payments and improved internet access are central to the rise of e-commerce.
Gabriel Swanepoel, Mastercard South Africa’s country manager, explained:
“Secure, seamless transactions are what allow retailers to scale at speed and consumers to shop with confidence. This combination of trust and efficiency is turning digital activity into real economic growth.”
He also noted that e-commerce is expanding beyond major cities into smaller towns and middle-income households, thanks to better internet penetration and accessible payment platforms.
Global entrants are also fuelling growth. Amazon launched its South African marketplace in 2024 and opened a seller centre in Cape Town in 2025 to support small businesses.
Chinese platforms Shein and Temu sold about $400 million worth of products in 2024, though growth may slow under stricter customs and tax regulations.
The CEO of Peach Payments, Rahul Jain, added that the sector is entering a new phase:
“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 reliable payments, efficient logistics, and consumer trust.”
The report forecasts that by 2027, South Africa’s online retail market will surpass $8 billion, representing about 12% of national retail spending.
Image Credit: Business Insider Africa
