South Africa’s online retail market is set to exceed $7 billion in 2025, capturing almost 10% of the country’s total retail sales.
- South Africa’s online retail market is projected to surpass $7 billion by 2025, representing nearly 10% of total retail sales.
- E-commerce sales experienced significant growth of 35% in 2024, reaching $5.2 billion, and demonstrated strong growth trends into 2025.
- Secure digital payment systems and improved internet access contribute to the e-commerce sector’s growth across diverse regions.
This is 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 shows that e-commerce sales grew by 35% in 2024, reaching about $5.2 billion and representing 8% of all retail sales.
Growth has continued in 2025 at an annualised rate of 38%, far higher than physical retail, which rose only 2.5% in 2024 and 1.6% by mid-2025.
Analysts say this shows that online shopping is now a central part of how South Africans spend.
Arthur Goldstuck, CEO of World Wide Worx, said the findings mark a turning point for retail in the country.
“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,” he said.
Retailers are reporting strong growth across categories
Shoprite’s Checkers Sixty60 delivery app grew by 47% in the first half of 2025, generating nearly $1 billion in sales.
Pick n Pay’s delivery services grew by more than 60% last year, while Woolworths reported a 37% rise in online fashion, beauty and home sales, and nearly 50% growth in its Woolies Dash grocery delivery service.
The Foschini Group said online sales from its Bash platform jumped 40% and now make up 12% of its total revenue.
Truworths’ online sales rose 38% to reach 6% of its South African sales. Mr Price and Clicks also posted double-digit growth in their online divisions.
Gabriel Swanepoel, country manager for Mastercard South Africa, said secure digital payments are key to this growth.
“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 said.
He added that e-commerce is spreading beyond big cities, as internet access improves and secure payment systems open up shopping for smaller towns and middle-income households.
Global companies are also driving growth. Amazon launched its South African website in 2024 and opened a seller centre in Cape Town in 2025 to support small businesses.
Shein and Temu together sold about $400 million worth of products in 2024, but their growth may slow this year because of stricter customs and tax rules.
Rahul Jain, CEO of Peach Payments, said the market is becoming more mature.
“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,” he said.
The report predicts that by 2027, online sales will exceed $8 billion and make up about 12% of all retail spending in South Africa.
