South Africa’s online shopping landscape is transforming as new tax policies reshape e-commerce dynamics.
Cross-border e-commerce growth in South Africa slowed to 7% in 2025, a stark decline from the previous annual growth rates of 30% to 50% before 2024. This shift is attributed to stricter import taxation rules from the South African Revenue Service (SARS), including the removal of tax exemptions on small-value imports under R500 and the introduction of a new four-tier tariff system on imported goods.
Impact of New Tax Rules on E-Commerce
The stricter import taxation has significantly increased costs for the small-parcel delivery model, which previously supported the rise of global fast-fashion platforms. Major players like Shein have seen their growth slow to 11%, while Temu has experienced an average monthly decline of 42%. In contrast, local platforms such as Takealot are gaining traction as the competitive landscape shifts.
The new policy environment is leveling the playing field for local online retailers, signaling an end to indiscriminate low-price competition. South African consumers are now prioritizing reliability, quality, and trust in delivery systems over mere price.
Shifts in Consumer Preferences
As the e-commerce landscape evolves, South Africans are increasingly valuing reliable logistics and consistent fulfillment. This trend is crucial in emerging digital markets where confidence in online shopping is still developing. The report emphasizes that both local retailers and global platforms must adapt to these changing consumer expectations.
Next Steps for E-Commerce Players
- Local retailers to enhance logistics and fulfillment strategies.
- Global platforms to adjust to compliant supply chains.
- Continued monitoring of consumer preferences in online shopping.
South Africa’s online shopping scene is shifting towards reliability and quality over price.
