South African eCommerce & The Amazon Opportunity

Over the past five years, South Africa's eCommerce landscape has transformed dramatically:

• Retail penetration of eCommerce grew from 1.9% in 2019 to 6.3% in 2022.
• The eComm market saw 41% growth in 2021, with penetration doubling from 1.9% to 3.8% in just one year.
• In 2022, eCommerce grew by 23%, significantly outpacing traditional brick-and-mortar retail, and penetration climbed from 4.2% to 4.8%.

The SA retail market is valued at $70 billion, and while eCommerce accounts for just $4.4 billion, this figure was below $1 billion in 2019. These numbers reveal an exponential trajectory—a testament to the increasing adoption of online shopping across income levels.

As Bill Gates famously said, "You overestimate what you can do in a year but underestimate what you can do in 10 years." eCommerce is no longer just an additional sales channel—it’s the future of retail. With more South Africans spending online, more frequently, on a wider range of goods, there has never been a better time to embrace Amazon.

In 2023, over 76 percent of South Africans used the internet. This is projected to grow by around 22 percentage points by 2029.  This shift has happened quickly, as a little over a decade ago, just more than half of South Africans had a bank account.

According to Statista’s Digital Market Outlook estimates, approximately 11.7 million e-commerce users in South Africa are forecast to be registered in 2025, increasing to 21.52 million users by 2029.

First Mover Advantage

Amazon South Africa offers a First Mover Advantage to sellers who can secure top ranking without spending on Amazon's Ads - which is necessary for all of Amazon's established marketplaces. Amazon is a pay-to-play platform, but South Africa is not yet!

Read: What does it mean that Amazon is pay-to-play?

You can position yourself at the forefront of an undeveloped and unsaturated Amazon.co.za, so that when it grows you grow with it. This saves you on Ad spend and offers a great growth opportunity. Low cost, high opportunity.

The most exciting part is the chance to leverage the algorithmic credibility gained from Amazon.co.za to spread into Amazon.com, Europe, and Asia.

The reviews and sales history you develop in Amazon ZA can be transferred across to these established marketplaces.

If you launched into Amazon USA without 100+ reviews, then you'd better be prepared to spend thousands of USD on Ads. The Eurasian and American Amazon marketplaces offer fantastic sales opportunities - billions of traffic every month! However, this means they are also very competitive (saturated), and penetrating as a new entrant is difficult (expensive).

Read: First Mover Advantage Explained.

Amazon South Africa does require minor - if at all - advertising expenditure. You can secure top-ranking spots without running ad campaigns, then, as Amazon grows in South Africa, your product will grow with it. The reviews that it gains can be transferred across to bigger marketplaces and allow you to leapfrog ahead. Just consider the size of eCommerce globally...

Global Momentum Meets Local Growth

Globally, eCommerce is thriving, with projected revenues of $4,117 billion in 2024 and a compound annual growth rate (CAGR) of 9.49% from 2024 to 2029, reaching a market volume of $6,478 billion. China leads this charge, contributing $1,469 billion in 2024.

The number of global eCommerce users is expected to hit 3.6 billion by 2029, with ARPU (Average Revenue Per User) soaring to $1,620. In South Africa, internet usage already exceeds 76% of the population (2023) and is expected to grow by 22 percentage points by 2029. This will lead to a surge in eCommerce users, from 11.7 million in 2025 to 21.52 million by 2029.

Why Amazon is a Game-Changer

Today, Takealot dominates 25-30% of South Africa’s eCommerce market, but the arrival of Amazon changes the landscape entirely. Amazon’s global reputation for efficiency, product variety, and customer-centric policies creates unparalleled opportunities for businesses. From providing advanced fulfillment centers to leveraging data-driven marketing strategies, Amazon allows brands to scale rapidly in both local and international markets.

fluid/sa: Your Partner in eCommerce Success

At fluid/sa, we believe that South Africa stands at the cusp of an eCommerce boom. Our expertise can help businesses like yours make the most of this moment:

• Global Reach: We set up Amazon accounts for businesses anywhere in the world.
• Optimized Listings: Our team ensures your products stand out with data-driven SEO strategies.
• Account Management: We handle the intricacies of Amazon operations, allowing you to focus on growth.

South Africa's First Amazon Agency.

‍