With over a decade of deep involvement in ecommerce and omni-channel retail, I find it fascinating to reflect on the trends shaping the industry. While the allure of the “next big thing” often dominates conversations, the foundation of success in ecommerce remains unchanged: getting the basics right. At its core, this means putting the customer first, offering excellent products and service, delivering on promises, and resolving issues swiftly when things go wrong.
That said, several key trends have emerged in recent years, and they will likely continue to define the ecommerce landscape in South Africa for 2025 and beyond. The rise and impact of AI in ecommerce
Artificial Intelligence (AI) is undoubtedly the most transformative trend in ecommerce today. Its applications span data analytics, personalised marketing and enhanced shopping experiences. The democratisation of AI technology has lowered the barrier to entry, enabling even small businesses to leverage its potential. For example, South African businesses are already using AI to implement personalised marketing strategies, boosting online sales without inflating advertising budgets.
Advanced AI solutions are transforming customer experiences through tailored product recommendations, dynamic search functionalities and on-platform personalisation, helping businesses increase basket sizes and overall revenue.
AI-powered chatbots are also playing a critical role in improving customer service by providing quick, accurate and 24/7 support. Tools like Canva’s AI-powered design features are making it easier for businesses to create impactful marketing visuals.
Moreover, the proliferation of no-code and low-code AI platforms, cloud-based AI services and affordable upskilling resources is accelerating adoption, even among SMEs.
Marketplace expansion
The marketplace model continues to gain traction, with both local and international players driving this boom:
- Amazon’s recent entry into South Africa has intensified competition, while Takealot continues to scale its Seller programme, encouraging more businesses to join its platform.
- Makro is ramping up marketplace efforts, echoing strategies from Walmart in the U.S. to compete with Amazon.
- Bash has demonstrated remarkable growth, showcasing the potential of localised marketplace strategies.
- Cross-border marketplaces like Temu and Shein are disrupting the market, offering South Africans access to a wider range of products at competitive prices.
This proliferation is reshaping customer expectations and creating new opportunities for local businesses to tap into broader audiences. The push towards true omni-channel retail
While many retailers in South Africa historically operated as multi-channel businesses with fragmented offerings, the focus is shifting towards creating seamless omni-channel experiences.
Retailers are investing in digital transformation to integrate their physical and online channels, providing customers with a unified shopping journey. While significant gaps remain, progress is evident, and customers are beginning to enjoy smoother transitions between online and in-store experiences.
The acceleration of on-demand services
The on-demand model, particularly in grocery retail, continues to evolve. Platforms like Checkers Sixty60 have set the benchmark, with competitors such as Spar, Pick n Pay (with Takealot) and Makro striving to keep pace. Even non-traditional players like Uber entered the fray, offering grocery delivery services on behalf of retailers.
Customer expectations around speed, reliability and variety are maturing, and retailers are responding by expanding product offerings and improving service delivery. The growing visibility of delivery bikes and personal shoppers in stores highlights the logistical scale of this trend.
Monetisation and retail media
A significant trend is the monetisation of retail assets through retail media networks. Retailers are increasingly leveraging their platforms to offer advertising opportunities, turning them into valuable revenue streams.
While early adopters have established a foothold, many retailers are just beginning this journey. This shift is expected to influence how brands allocate marketing budgets, with more emphasis on integrating retail media into their overall strategies.
Overarching trends for 2025
While numerous trends are shaping the ecommerce space, as reflected above, AI stands out as the most impactful. Its adoption and application are no longer limited to large enterprises with deep pockets. Businesses of all sizes are beginning to harness its power, unlocking new possibilities in customer engagement, operational efficiency and revenue growth.
Conclusion
As these trends and others unfold, South Africa’s ecommerce landscape is poised for continued evolution and growth. By combining cutting-edge technologies, like AI, with a commitment to the fundamentals - customer focus, operational excellence, and innovative strategies - businesses can thrive in an increasingly competitive market.
2025 promises to be an exciting year for eCommerce. Let’s watch how these trends reshape the industry.
Paris Philippou is a well-respected senior executive with two decades of experience in building and executing successful business strategies. He has held senior executive roles at top-tier organisations, spearheading large-scale transformations and leading multi-billion Rand business portfolios. He has led digital, ecommerce, and omni-channel business units at various stages of maturity. In addition to his corporate roles, he has served on the board of the Ecommerce Forum Africa, and as a founder and entrepreneur he has successfully launched, sold and exited several businesses.