Online retail sales expected to leap to R159bn this year

E-commerce sales are forecast to grow 22.5% and reach 10% of total retail turnover for the year. (123rf)

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Consumers are expected to spend about R159bn shopping online this year as existing shoppers buy more frequently and across a wider range of categories, driving e-commerce to a record 10% share of retail sales.

According to the Online Retail in South Africa 2026 study produced by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Africa, e-commerce sales are forecast to grow 22.5% and reach 10% of total retail turnover for the full year.

The study show that online shopping continues to grow significantly faster than the broader retail market, which expanded by about 4% in the first five months of 2026.

The R159bn forecast is an increase of about R29bn from 2025.

Arthur Goldstuck, MD of World Wide Worx and principal analyst on the research, said the local online retail market has grown from less than 1% of retail turnover to a tenth of the market in a decade.

“It is adding almost the value of the entire 2020 online market in a single year, and several major operations are now profitable. Retailers are no longer funding digital commerce as a side project. They are building fulfilment, loyalty, marketplaces and advertising into the same operating system as their stores.”

Consumers are also increasingly shopping across different online platforms. Takealot remains the most-used platform, with 35.3% of online shoppers using it, followed by Shein at 21.5% and Checkers Sixty60 at 15%.

Amazon was used by 12.7% of online shoppers before the launch of Prime in South Africa in June 2026.

The growth is being driven by consumers shopping more frequently and across a wider range of categories.

Established online shoppers are buying more frequently and across more categories. Convenience has become a stronger motivation than saving money or finding lower prices

—  Andrea Rademeyer, CEO and founder of Ask Africa

Andrea Rademeyer, CEO and founder of Ask Africa, said convenience had become a stronger motivation for online shoppers.

“Established online shoppers are buying more frequently and across more categories. Convenience has become a stronger motivation than saving money or finding lower prices,” she said.

In their recent financial results, the country’s biggest online retailers have recorded strong sales from their e-commerce platforms.

Takealot Group recorded its first full-year trading profit 15 years after launch, reporting adjusted earnings before interest and tax of R171m. Pick n Pay’s online operation was profitable for a second consecutive year, while its online turnover increased by 32.7%.

Checkers Sixty60 sales grew 34.5% to R25.5bn in the year to June 2026. TFG Africa’s online sales grew 49.2%, while Woolies Dash grew 19.6%.

The research also points to growing demand for subscription-based shopping and delivery services as retailers compete to secure repeat purchases.

Amazon Prime costs R59 a month in South Africa, while Shoprite’s Xtra Savings Plus costs R99 a month and offers unlimited free deliveries. TakealotMORE has also gained traction, accounting for more than 25% of Takealot Group’s gross merchandise value within two years of its launch.

Payment methods are also evolving as online shopping expands. While card payments remain the base of online commerce, consumers are increasingly using instant electronic transfers, digital wallets and buy-now-pay-later products at checkout.

Rahul Jain, CEO and co-founder of Peach Payments, said the commercial focus had moved towards conversion and repeat use.

“South African merchants have already done much of the hard work required to build reliable online operations,” he said.

“Their focus now is on converting more visits into completed purchases and earning repeat business. Fast authentication, dependable payment processing and a checkout that works well on a smartphone can have a direct effect on revenue. The best payment experience is one that removes effort while preserving security.”

Gabriel Swanepoel, division president for Africa at Mastercard, said secure and accessible digital payments would be important as consumers make more online purchases.

“The next gains will depend on giving consumers payment choices that are secure, simple and accessible,” he said.



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