Report finds SA's e-commerce landscape enters a “repositioning” era

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This is according to the newly released South Africa Cross-Border E-commerce Market Outlook 2025 by Mustang Pay, developed in partnership with the South African International eCommerce Association (SAIEA).

Drawing on 2024–2025 customs clearance and payment data, the report provides a comprehensive, data-driven view of the country’s evolving digital commerce landscape, highlighting the structural shifts shaping both cross-border and domestic e-commerce.

Key findings

• E-commerce enters a “repositioning” era: Following tax and fee adjustments introduced in 2024, cross-border e-commerce growth has slowed to approximately 7%, signalling the end of indiscriminate low-price competition.

• Trust emerges as the primary competitive advantage: Consumers are increasingly prioritising certainty, whether products will be delivered, match their description and be supported by reliable customer service, over simply the lowest price.

• Core cities drive growth and premiumisation: Cities such as Johannesburg and Cape Town are leading both in transaction volumes and higher-value purchases, reflecting a broader shift toward consumption upgrading.

Geographic dynamics

The report highlights that regional dynamics are increasingly shaping e-commerce strategies in South Africa.

In Tier 1 markets such as Johannesburg and Cape Town, growth is driven by brand-led, premium consumption, while Tier 2 markets-including Durban, Pretoria and Port Elizabeth, prioritise value and operational efficiency to capture expanding demand.

In Tier 3 markets, comprising townships and smaller towns, adoption is more trust-driven and highly pricesensitive.

Across all regions, logistics and delivery reliability have become critical determinants of customer loyalty. With cross-border deliveries averaging six to eight days and higher return costs, local platforms are gaining a competitive edge by offering faster, more predictable delivery and clear return policies.

Collaboration for growth

The findings further underscore the importance of collaboration between industry stakeholders and policymakers to foster a balanced, competitive and transparent e-commerce ecosystem that supports sustainable growth.

“Our partnership reflects a shared commitment to strengthening South Africa’s digital trade environment through credible data and informed dialogue,” said Dudley Filippa, chairperson of SAIEA.

“Sustainable growth requires alignment between policy, platforms and merchants.”

“As the market matures, success depends on more than transactions - it depends on enabling merchants to operate efficiently and build customer trust,” said Dillion Chen, Mustang Pay CEO.
“This report is part of our commitment to providing actionable insights that support long-term growth.”

Accessing The South Africa Cross-Border E-commerce Market Outlook 2025