For the past two years, much of the conversation around South African ecommerce has centred on international disruptors. Shein, Temu and, more recently, Amazon have dominated headlines, prompting predictions that local retailers would struggle to compete against global pricing and seemingly endless product catalogues.
The latest Online Retail in South Africa 2025 report tells a more balanced story. While international platforms have undoubtedly changed consumer expectations, the research suggests that South African retailers already possess advantages that are difficult for offshore competitors to replicate. The next stage of ecommerce growth will come from strengthening those advantages rather than chasing a race to the bottom on price.
Local retailers still have the trust advantage
One of the strongest findings in the report is that South African consumers continue to favour local retailers.
Nearly half of respondents said they primarily shop on local ecommerce platforms, while only 9% said international platforms are their first choice. More than half, 56%, have never purchased from Shein or Temu, and only 5% shop on these platforms every week. Almost half of consumers also said they trust local retailers more than international ones, compared with just one in ten who place greater trust in offshore platforms.
That level of trust carries significant commercial value. Consumers are comfortable sharing payment details, they have confidence that products will arrive, and they know there is local customer support if something goes wrong. Trust shortens the path to purchase and encourages repeat buying, particularly in categories where quality, authenticity and after-sales service influence purchasing decisions.
Convenience has become the real competitive battleground
The report also highlights why many consumers continue choosing local retailers over international marketplaces.
Delivery times, customs charges and uncertainty around imported purchases remain the biggest barriers to shopping internationally. At the same time, free delivery and loyalty programmes rank among the most valued retail subscription benefits for South African consumers.
These findings suggest that convenience has become one of the strongest differentiators in online retail.
Consumers increasingly expect predictable delivery, transparent pricing, simple returns and rewards that recognise repeat purchases. While international marketplaces may compete aggressively on product price, local retailers are often better positioned to deliver a complete shopping experience that feels reliable from checkout through to delivery.
Shein and Temu are influencing the market without dominating it
The report provides useful context around the impact of Shein and Temu. Industry estimates place their combined South African turnover at approximately R7.3 billion, representing almost 40% of online clothing sales.
However, the report concludes that this influence should be viewed within the much larger retail landscape. Regulatory changes have reduced many of the pricing advantages these platforms previously enjoyed, while stricter customs enforcement has narrowed the gap between imported and locally supplied products.
The report’s conclusion is clear. Shein and Temu remain significant competitors, but they are unlikely to displace local retailers. Faster delivery, easier returns, familiar payment methods and stronger customer relationships continue to give South African businesses meaningful competitive advantages.
Loyalty is becoming a growth strategy
As ecommerce matures, retaining existing customers becomes increasingly valuable. The report identifies subscription programmes, rewards and free delivery as some of the strongest incentives influencing where consumers choose to shop online. Rather than relying solely on promotional pricing, retailers are building longer-term customer relationships by creating reasons to return.
This reflects a broader shift in ecommerce strategy. Growth increasingly comes from increasing customer lifetime value through repeat purchases rather than continuously acquiring new customers through discounting.
For retailers, this creates opportunities to strengthen membership programmes, personalise offers, simplify returns and reward customer loyalty in ways that offshore competitors cannot easily replicate.
Retailers remain confident despite international competition
Perhaps one of the most surprising findings comes from the retailer survey itself. Almost two-thirds of retailers reported that Shein and Temu have had no measurable impact on their business. More than half are not planning any specific competitive response. Among those that are adapting, the most common strategies include competitive pricing, faster delivery and expanding product ranges rather than fundamentally changing their business models.
That confidence reflects a sector that has entered a new stage of maturity. South African online retail is expected to surpass R130bnin 2025, representing almost 10% of national retail sales. Retailers are increasingly profitable, consumer confidence continues to grow, and ecommerce has become a core part of retail strategy rather than an experimental sales channel.
Building on local strengths
The Online Retail in South Africa 2025 report suggests that the strongest competitive strategy is to build on the qualities consumers already value.
Retailers that invest in loyalty programmes, transparent pricing, dependable delivery, responsive customer service and frictionless shopping experiences are strengthening advantages that international marketplaces struggle to match consistently in the South African market.
Global platforms will continue to shape customer expectations and increase competitive pressure. Local retailers, however, already hold valuable assets in customer trust, market knowledge and service quality. Those strengths provide a foundation for sustainable growth as South Africa’s ecommerce market continues its rapid expansion.