Online Retail in South Africa 2026 report has projected that ecommerce spend will reach R159 billion this year.
In two months, South Africans will be trawling several online retailers daily in order to find the best deals for Black Friday (now Black November). In the lead up to the annual shopping event, the Online Retail in South Africa 2026 report has been released, looking at ecommerce locally, and projecting how much it is expected to grow by the end of this year.
The report was produced by local research firm, World Wide Worx, in partnership with Mastercard, Peach Payments, and Ask Africa.
It also leverages data from several sources, including retailer financial disclosures through financial year 2026, Statistics South Africa retail data through mid-2026, and consumer research from Ask Africa’s Target Group Index. The latter is based on 23 910 interviews conducted from January to December 2025.
This latest report confirms the projected figures from last year, with the previous edition forecasting that online sales would reach around R130 billion in 2025. For this year’s iteration, an estimated growth of roughly R29 billion in turnover is expected during 2026, reaching a total of R159 billion.
This represents a growth of 22.5 percent, which is intriguing given how much the cost of living has increased in South Africa this year, and how consumers have had to tighten the purse strings when it comes to making online purchases.
According to Mastercard, the reason for this, is how the online retail space has evolved of late, particularly when it comes to the security that is offered. Another contributing factor is how streamlined many online retailers make the purchasing process, along with adding buy now, pay later offerings, and other payment solutions in order to complete successful digital checkouts.
“Reaching 10% of retail turnover confirms that digital commerce has become part of everyday trade in South Africa. The next gains will depend on giving consumers payment choices that are secure, simple and accessible, while helping merchants reduce friction at checkout. As the market expands, every successful transaction strengthens trust and makes it easier for more people and businesses to participate in the digital economy,” noted Gabriel Swanepoel, division president for Africa at Mastercard.
Rahul Jain, CEO and co-founder of Peach Payments, was of a similar opinion, as online retailers have gone to painstaking efforts in order to make their environments robust and well equipped in terms of handling the demands that ecommerce presents.
“South African merchants have already done much of the hard work required to build reliable online operations. 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,” he pointed out.
With ecommerce surging during the pandemic as a necessity for many businesses to continue operating, the lessons learned during that time has seen several organisations thrive. It has also propelled growth to reach predicted figures far sooner than before, Arthur Goldstuck, MD of World Wide Worx and principal analyst on the research, explained.
“South African online retail 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,” highlighted Goldstuck.
Looking at the local ecommerce landscape, the report also identified how competition is also broadening within South Africa. On this front, local outfit Takealot still remains the most-used platform, with 35.3 percent of online shoppers favouring it. This is followed by Shein at 21.5 percent and Checkers Sixty60 at 15 percent.
There is also a sleeping giant in South Africa in the form of Amazon, which was used by 12.7 percent of online shoppers, but this figure was recorded before it launched its Prime delivery service in the country earlier this year. This subscription-based service is seen to be a differentiator in the market, with the current major players expected to one-up one another in order to garner greater customer loyalty.
“The report identifies subscriptions and delivery economics as major competitive tests for the coming year. Amazon Prime costs R59 a month in South Africa, while Shoprite’s Xtra Savings Plus offers unlimited free deliveries for R99 a month. TakealotMORE accounted for more than 25% of Takealot Group gross merchandise value within two years of launch,” shared World Wide Worx.
“Convenience has become a stronger motivation than saving money or finding lower prices. The growth in turnover therefore reflects a deepening of online shopping behaviour among current users, alongside the opportunity to bring millions more connected South Africans into the market,” added Andrea Rademeyer, CEO and founder of Ask Africa.
With Black November around the corner, it will be interesting to see if last year’s numbers can be surpassed, as has been projected.
To read the Online Retail in South Africa 2026 report for yourself, head here.
[Image – Photo by A. C. on Unsplash]
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