South Africa’s online retail market is projected to grow 22.5% to a record R159 billion in 2026, with delivery costs, reliability and speed shaping retailers’ choice of courier partners.
Online sales are expected to account for about 10% of total retail turnover over the full calendar year, according to the Online Retail in South Africa 2026 report.
The projected growth would add roughly R29bn to the market this year – almost equivalent to South Africa’s entire R30.2bn online retail turnover in 2020.
The report was compiled by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Africa. Its research draws on retailer financial disclosures, Statistics South Africa data, Ask Africa’s Target Group Index survey of 23 910 face-to-face consumer interviews and surveys of 1 400 online shoppers and 201 local retailers.
“South African online retail has grown from less than 1% of retail turnover to a tenth of the market in a decade,” said World Wide Worx managing director and principal analyst Arthur Goldstuck.
“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.”
The retailer survey highlighted the importance of delivery costs and service levels in courier selection.
Lower delivery costs were cited by 92.4% of respondents as a factor that would prompt them to change courier partners. Delivery reliability followed at 87.9%, faster delivery times at 85.4%, better customer support at 83.8% and improved tracking and visibility at 80.3%.
The Courier Guy was the most widely used courier among surveyed retailers, with 64.7% reporting that they used its services. RAM followed at 13.9%, Fastway at 13.4% and Aramex at 7.5%. The figures reflect usage among survey respondents rather than national courier market share.
Shipping charges are also an increasing obstacle to completing online purchases. High shipping fees were cited by 51.7% of retailers as a reason for shopping cart abandonment, up from 31.3% in 2025. Only card declines ranked higher, at 61.2%.
Free delivery featured among consumers’ reasons for joining retail subscription services. It was cited by 22.6% of respondents, behind loyalty or rewards programmes at 27.4%. Just over half – 51.1% – indicated that they intended to sign up for a retail subscription within the next six months.
Grocery delivery remained a growth area, with Checkers Sixty60 reporting sales growth of 34.5% to R25.5bn in the year to June 2026.
Ask Africa founder and CEO Andrea Rademeyer said established online shoppers were buying more frequently and across more categories.
“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,” she said.
