Local online retailers see profits soar as consumer trust grows
Based on a survey of 201 retailers and 1,400 consumers, the study reveals that 74% of online retailers are already profitable and expect continued growth, while consumers show a clear preference for local platforms over international rivals.
Retailers confident in payments and operations
Retailers reported exceptionally high levels of satisfaction with their online operations.
Ninety-two percent expressed confidence in their payment providers, reflecting years of investment in secure, frictionless systems. Fraud and security challenges were cited by only a minority, with cart abandonment now more commonly attributed to lengthy checkout processes and shipping fees.
Profitability is strong, with nearly three-quarters of retailers confirming they are in the black, and the same proportion expecting turnover growth above 40% in 2025. Marketing strategies have matured into digital-first campaigns led by social media, email and paid search, while larger retailers are reintroducing traditional advertising to reinforce brand strength.
Consumers prefer local platforms
Consumers are equally confident. Nearly half of South Africans report shopping primarily on local platforms, while just 9% prefer international sites.
A majority—56%—say they have never shopped on low-cost international e-commerce platforms, and only 5% purchase from those sites weekly or more. Trust remains a decisive factor: 46% of consumers trust local platforms more than international sites, compared to only 10% who place great trust in offshore retailers.
Subscriptions and loyalty programs are increasingly valued, with free delivery and rewards cited as the most important features. While awareness of artificial intelligence (AI) in online shopping is high at 60%, only 26% report direct interaction with AI tools.
Voices on growth and trust
Arthur Goldstuck, CEO of World Wide Worx, said the findings show an industry entering a new stage of development.
“Retailers have demonstrated that e-commerce is no longer about experimentation but about execution. They are delivering profits, consumers are rewarding them with trust, and the infrastructure is proving reliable. The industry is now defined by resilience and consolidation rather than fragility.”
Goldstuck added that consumer trust is the key differentiator.
“The most striking outcome of our survey is how strongly consumers align with local retailers. Even in the face of aggressive international entrants, South Africans continue to value the familiarity, convenience and trust offered by domestic platforms. This loyalty is the foundation on which the next phase of growth will be built.”
Gabriel Swanepoel, country manager for Mastercard South Africa, highlighted the central role of payments in enabling growth.
“The rise of online retail reflects the combination of consumer trust and reliable payments. Secure, seamless transactions allow retailers to scale at speed and efficiency is turning digital activity into real economic growth, and at Mastercard we are providing the rails that power this transformation.”
Swanepoel added that inclusivity remains critical to long-term success.
“Momentum is no longer limited to major cities. It is in smaller towns and among middle-income households as connectivity improves and secure payments open access. This shows how digital inclusion is expanding opportunity well beyond traditional retail hubs.”
South Africa’s e-commerce boom is built on trust, with payments at the heart of this transformation. From township entrepreneurs to national retailers, businesses are embracing the digital economy because payments are secure, seamless and accessible.
Mastercard is proud to provide the rails and innovation that give consumers confidence to shop, help retailers scale, and ensure that digital commerce drives inclusive growth across the entire economy.
Rahul Jain, CEO of Peach Payments, said the survey confirms that South Africa has moved past the early hurdles of e-commerce adoption.
“Retailers are proving that e-commerce can be both fast-growing and profitable in South Africa. Consumers are showing their loyalty to local platforms because they trust them to deliver, and this trust is the greatest asset we can build on for the next phase of online retail.”
Jain also stressed the importance of innovation in checkout and fulfilment.
“What we are seeing now is the transition from functionality to excellence. Consumers expect checkout to be seamless and delivery to be predictable. Retailers that innovate in these areas will not only capture market share but also win long-term loyalty. The foundations are in place, and the opportunity is enormous.”
Christian Nee-Whang, CCO of Ask Africa, which provided the demographic insights for the study, emphasised that the report trends align with what Ask Africa are seeing in their annual research results.
"Looking from a longer timeframe, online retail in South Africa is characterised by moderate engagement. However, we still see growth being driven by younger, economically active, and urban-based consumers, with strong representation among English-speaking individuals, as well as those earning above R18,000 per month. The trend over-indexes in affluent provinces like Gauteng and the Western Cape, suggesting that access, infrastructure, and disposable income are key enablers of e-commerce adoption.
"The overall high percentage of infrequent shoppers also signals an opportunity for e-commerce platforms to deepen engagement through loyalty programs, targeted promotions, and improved user experience, as well as building brand equity and gaining greater trust for online shopping as a whole. For brands and businesses, the opportunity to further grow this ‘omnichannel’ lies within those shoppers that engage more frequently, thus weekly or more."
The findings point to a sector that has matured, consolidated, and is now positioned for sustainable growth. Retailers are profitable, consumers are loyal and the ecosystem is resilient. Together, these trends point to continued expansion through the rest of the decade.
Download the Online Retail in South Africa 2025 report.