New Report Highlights Changes in South African Online Spending Trends
South Africa's online retail market expects slower growth despite reaching a substantial R159-billion in 2026.
The Full Story
A recent report has revealed that South Africa's online retail market is projected to reach R159-billion in 2026, up from R130-billion last year. While this reflects significant growth, the rate is expected to decline sharply to 22.5%, down from previous rates of 35.4% in 2025 and 35.2% the year before. This will mark the slowest growth rate recorded in the last six years by World Wide Worx, indicating a critical moment for the country’s e-commerce landscape.
Despite the slowdown seeming alarming, the market is still projected to add approximately R29-billion to turnover this year, a value close to that of the entire South African online retail market in 2020, when it was recorded at R30.2-billion. World Wide Worx MD Arthur Goldstuck explained the importance of viewing these figures within a broader context, as a smaller percentage of a much larger base can translate into more financial turnover. The findings highlight a significant stabilization for the online retail sector within a longstanding growth range typical since 2006, excluding the spike caused by the pandemic in 2020.
Shifts in consumer behaviour are evident, as the portion of online shoppers spending over R2,000 in a six-month period increased from 23.4% to 29%. However, the overall percentage of adults engaging in online shopping has seen a slight decline. The report emphasizes that 2026 is anticipated to be the first complete year where online retail averages 10% of national retail turnover.
The data indicates a crossroad, revealing that consumer trust in international platforms has diminished, showing a significant drop from 10% to 4%, while faith in local platforms held steady at 46.6%. This trend reflects a market that is maturing, as more consumers prioritize also the reliability and effectiveness of their shopping experiences. Interestingly, payment issues also emerged as a substantial concern for consumers, with claims of successful payments being hindered by checkout errors (60.7%), lack of funds (50.7%), and transaction abandonment (50.7%).
Retailers reported payment fraud as a significant concern, representing a juxtaposition against the reality faced by consumers during transactions. The report features additional insights on payment methods employed by retailers, indicating a high prevalence of debit and credit cards, with digital wallets gaining traction among consumers—evidence of evolving market preferences. Notably, the report showed that Takealot Group has finally achieved profitability after 15 years of trading, signaling a milestone for the industry as a whole.
Overall, while the growth rate of South African online retail may be declining, the absolute financial figures demonstrate substantial progress and an evolving market landscape ready to adjust to new consumer preferences. The challenges faced, along with the changing demands of shoppers, set a stage for future innovation and adaptation within the sector as it navigates this shifting environment. Looking ahead, analysts will watch closely to understand how businesses respond to these trends and whether further structural changes will emerge in the e-commerce domain as stakeholders aim to maximize their market potential and strengthen consumer relations.
Why It Matters
The report underscores a pivotal moment for South African online retail, revealing shifting spending trends and consumer behaviours essential for shaping industry strategies moving forward as businesses adapt to competitive e-commerce dynamics.
What's Next
Businesses in South Africa will need to align their strategies to enhance customer experiences in online retail as they adapt to these changing spending trends, tackling challenges in payments and improving consumer trust, particularly in international platforms.