South Africa Online Retail Set To Surpass 10% Of Market, Report Shows

Online retail in South Africa is projected to exceed 10% of total retail sales for the first time in early 2026, driven by high growth rates and increased spending among older, higher-income shoppers, according to a new industry report.

The “Online Retail in South Africa 2025” study from research firm World Wide Worx found that e-commerce sales grew 35% in 2024, matching the growth rate from the previous year. Online’s share of total retail revenue rose to 8% in 2024, from 5.9% in 2023, and is on track to reach double digits in the coming months.

Total online retail sales reached ZAR 96 B rand (~USD 5.5 B) in 2024 and are estimated to grow to ZAR 130 B in 2025, World Wide Worx said.

The report identified a shift in the primary demographic driving growth, from younger consumers to older shoppers with greater disposable income.

“The biggest earners are now the ones with the biggest appetite for online shopping and are therefore driving that massive growth,” said World Wide Worx CEO Arthur Goldstuck.

Shoppers aged 45-64 increased their share of online spending by three percentage points in 2024, while the 25-34 age category grew by five points. The report noted that growth is now less about new users and more about existing shoppers moving a greater portion of their spending online.

The study segments consumers by socioeconomic level (SEL), with the highest earners (SEL 1) being the most prolific online shoppers at 77%. Over 30% of respondents earning above 30,000 rand per month shopped online frequently.

Takealot remains the market leader, used most frequently by 45% of respondents. Shoprite Group’s Sixty60 grocery service followed with 16%. Chinese platforms Shein and Temu were not among the most-used, though 17% of their users cited better deals as their main reason for shopping there.

Payment by card remains dominant for online transactions, used by 50% of respondents. Bank transfers were used by 26%, while mobile wallets and buy-now-pay-later services accounted for 7% and 5%, respectively.

Feature Image Credits: Financial Street