South Africa’s online retail market is on track to exceed $7 billion by 2025, accounting for nearly 10% of the country’s total retail sales. E-commerce has surged, with sales growing by 35% in 2024, reaching approximately $5.2 billion.
The increase in online shopping is driven by secure digital payment systems and improved internet access, enabling consumers across diverse regions to shop more easily. The Online Retail in South Africa 2025 report, produced by World Wide Worx in collaboration with Mastercard, Peach Payments, and Ask Afrika, highlights these trends.
Growth Trends
The e-commerce sector is continuing to expand in 2025, with an annualised growth rate of 38%, significantly outpacing the physical retail sector, which saw only 2.5% growth in 2024. Analysts indicate that online shopping has become a central aspect of South African consumer behaviour, marking a significant shift in retail dynamics.
Retailers have reported robust growth across various categories. For instance, Shoprite’s Checkers Sixty60 delivery app saw a 47% increase in the first half of 2025, generating nearly $1 billion in sales. Likewise, Pick n Pay’s delivery services grew by over 60%, while Woolworths experienced a 37% rise in online sales for fashion, beauty, and home goods.
Key Factors Driving Growth
Secure digital payment systems are crucial for the expansion of e-commerce, as they enable retailers to scale quickly and provide consumers with confidence in their transactions. Gabriel Swanepoel, country manager for Mastercard South Africa, noted that improved internet access is also facilitating online shopping in smaller towns and among middle-income households.
Global companies are contributing to this growth as well. Amazon launched its South African website in 2024 and opened a seller centre in Cape Town in 2025, aimed at supporting small businesses. Meanwhile, brands like Shein and Temu have sold approximately $400 million worth of products, although their growth may be affected by new customs and tax regulations.
Future Predictions
As the market matures, retailers are moving beyond initial experiments with e-commerce to scale operations profitably. Predictions indicate that online sales could exceed $8 billion by 2027, representing about 12% of all retail spending in South Africa.
The findings underscore the transformative potential of e-commerce in the country, showcasing how digital shopping is reshaping consumer habits and the retail landscape.