(3 Minutes Read)
South Africa’s online retail sector is undergoing rapid transformation, with digital sales surging by 35% in 2024 and projected to grow another 38% in 2025, according to the Online Retail in South Africa 2025 report by World Wide Worx. This far outpaces the growth of physical retail and marks a significant shift in consumer behaviour.
Arthur Goldstuck, CEO of World Wide Worx, highlighted the significance of this trend: “E-commerce has moved from the sidelines to the core of our retail economy. Nearly one in every ten rand is now spent online—this is no longer a test phase but a structural shift.”
However, the benefits of this growth are not evenly spread. A study by the Localisation Support Fund (LSF) revealed that by 2024, around 8,100 potential jobs—mainly in retail and manufacturing—had not materialised due to rising competition from international platforms like Shein and Temu. If current trends continue, up to 34,000 local jobs could be lost by 2030.
Simon Eppel, research director at the SA Clothing and Textile Workers’ Union, warned that cheap imports are undercutting local businesses and pushing down retail prices. In response, the government has tightened customs regulations and removed VAT exemptions on small parcels, but enforcement remains patchy.
Despite the concerns, the World Wide Worx report notes that 65% of local retailers say Shein and Temu have had minimal impact on their business, and 75% believe their own e-commerce systems are superior to those of their global counterparts. Still, the broader economic impact on jobs and local suppliers cannot be ignored.
Another key issue is digital access. A 2025 GSMA report highlights that while mobile internet coverage now reaches 96% of the global population, 3.1 billion people remain offline—65% of them in sub-Saharan Africa. Women are 14% less likely than men to be online, and rural communities lag 25% behind urban ones in connectivity.
The high cost of entry-level smartphones remains a major barrier. In many low- and middle-income countries, a basic device can cost up to 16% of a person’s monthly income. The GSMA estimates that affordable devices—priced around $30 (R521)—could help connect 1.6 billion more people.
Meanwhile, most South African e-commerce still relies on traditional tools like cash on delivery (37%) and physical collection points (36%). Adoption of advanced technologies remains low, with only 9% using AI, 7.5% using drop-shipping, 2.5% enabling automated payouts, and just 1% experimenting with virtual reality.
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Experts agree that while South Africa’s e-commerce surge offers huge opportunities, it could worsen inequality if growth isn’t inclusive. Eppel warned that projected job losses must be a “wake-up call,” emphasizing that the rise of online retail shouldn’t come at the expense of local industry.
