The explosive growth of e-commerce in South Africa in 2023 Steven P January 9, 2023
The explosive growth of e-commerce in South Africa in 2023

E-commerce has developed into one of the main forces behind the retail industry today, giving customers a quick and easy option to shop for products.

Consumers around the world, including South Africa, not only shop offline but also online from their phones wherever they are, whenever they want. With the purchasing instrument existing in the client’s hand or pocket, mobile commerce satisfies this changing customer need.

The South African market for e-commerce

eCommerce in South Africa is expanding at previously unheard-of speeds. The coronavirus epidemic has probably contributed to some of this growth, and although it is uncertain whether the need will persist, it is anticipated that culture is changing over the long term.

Retailers have taken note of South Africans’ growing propensity for online shopping as they work to give customers more freedom and options when making purchases. E-commerce is becoming a crucial sales channel for an increasing number of companies, including start-ups and well-established retail behemoths.

The South African e-commerce industry’s rapid expansion in 2023

More market competition

Smaller, independent merchants are becoming more competitive since they realize that their clientele can be broadened beyond their immediate geographic presence thanks to the change to e-commerce.

Despite having more negotiating leverage and potentially lower input costs than an SME (Small and Medium enterprises) moving online, FNB (Food and Beverage) emphasized that larger retailers’ digital prices are significantly higher since they must maintain a distinctive digital offering while maintaining data security.

Rapid growth

eCommerce is growing more swiftly than ever in South Africa. eCommerce in South Africa increased by 66% in 2020 compared to the previous year. The limits imposed on conventional retail establishments, which resulted in a 30% decrease in in-store shopping, were the main factor behind this growth.

While various levels of lockdown hurt several sectors of the economy in 2020, online retailers reported a rise in sales as South Africans preferred home delivery to mall and supermarket shopping. The market share of internet retail in South Africa increased to 2.8% in 2020, Stats SA reports, which is a twofold increase from the previous year.

Innovative logistics

While only accounting for 3% of retail sales, eCommerce in South Africa has already surpassed traditional retail in other countries. For instance, in the USA, e-commerce accounts for about 13% of total retail sales, a percentage that has increased by 50% over the last five years.

A February 2022 analysis revealed that South Africa achieved the greatest percentage of mobile as a part of overall e-commerce from the top 5 African economies, accounting for 63% of the total e-commerce proportion. Mobile commerce is playing a significant role in the expansion of online shopping across the continent.

It’s more crucial than ever for retailers to assist customers in making purchases through the channel of their choice. It includes mobile and collaborating with a reputable global logistics provider equipped with cutting-edge tools to help them access new markets, delivering solutions that are practical for their company, and offering delivery options that satisfy customer expectations.


The market’s stakeholders must, however, innovate and invest in solving the difficulties that eCommerce in South Africa faces if this digital revolution is to be fully realized. Contact us to learn more about these challenges of eCommerce in South Africa’s digital revolution.

Write a comment

Your email address will not be published. Required fields are marked *