South Africa’s online retail market is moving into a more mature phase, and the next challenge is no longer simply getting customers to shop online. As eCommerce scales, retailers are increasingly competing on the quality and economics of fulfilment from delivery costs and last-mile reliability to tracking, courier choice and the ability to serve customers beyond major urban centres.
eCommerce growth is putting fulfilment under greater pressure
The Online Retail in South Africa 2026 report estimates that online retail turnover will reach about R159 billion in 2026, representing roughly 22.5% growth. The market is also expected to average 10% of national retail turnover on a strict like-for-like nominal basis during the year.
With online retail growing several times faster than physical retail, logistics is becoming an increasingly important part of the customer experience and the retail operating model.
The report highlights delivery costs and minimum-order requirements as barriers that can make smaller purchases uneconomical, while last-mile reliability becomes more difficult outside major urban areas. For retailers trying to convert more of South Africa’s connected population into online shoppers, improving fulfilment economics and delivery accessibility will therefore be critical.
Cost is the biggest reason retailers would change courier partners
The 2026 retailer survey provides a clear view of what matters most when businesses assess their logistics partners.
Lower delivery costs are the strongest reason retailers say they would consider switching courier or logistics providers, with 92.4% rating lower delivery costs as a likely driver.
But cost is not the only consideration. Better delivery reliability is cited by 87.9% of retailers, faster delivery times by 85.4%, and better customer support by 83.8%. Improved shipment tracking and visibility also rank highly at 80.3%.
The message is clear: retailers want logistics partners that can reduce cost without compromising the delivery experience.
The Courier Guy leads a fragmented delivery landscape
The report’s new logistics and fulfilment module show that The Courier Guy is used by 64.7% of surveyed retailers, followed by RAM at 13.9% and Fastway at 13.4%. Aramex follows at 7.5%, while DPD Laser and in-house delivery fleets each account for 6.0%.
The figures also show that retailers are not necessarily dependent on a single delivery model. Alongside major courier providers, businesses use their own fleets, shipping platforms, lockers and other fulfilment options.
As online retail becomes more complex, the ability to manage different delivery models and match shipments to the right service is likely to become increasingly valuable.
Last-mile delivery remains the biggest operational challenge
High delivery costs are the most-cited logistics challenge in the survey, with 48.0% of retailers rating them as a significant challenge.
Delivery in rural or remote areas follows at 32.8%, while failed deliveries and return-to-origin account for 25.8%. Customer queries related to deliveries are cited by 24.7%.
Managing multiple courier partners and returns processing each affect 20.2% of retailers, while quick commerce is cited by 19.8%.
Shipment tracking and fulfilment activities such as warehousing, picking and packing are rated as challenges by 15.2% each.
Overall, the report characterises logistics as persistent, cost-driven friction rather than an acute operational crisis.
Store networks are becoming fulfilment infrastructure
One of the clearest trends across South African retail is the growing role of physical stores in digital fulfilment.
The report points to retailers using store networks as fulfilment nodes, while collection infrastructure can help reduce delivery complexity and improve convenience.
Checkers Sixty60 illustrates this shift at scale. The platform recorded R25.5 billion in FY2026 sales, up 34.5%, and reported 94.0% on-time deliveries and 96.8% order fulfilment.
Shoprite’s store density with stores located within five kilometres of an estimated 85% of South African households gives the business a structural advantage in bringing inventory closer to customers.
The broader implication is that fulfilment is becoming less about a single warehouse-to-door journey and more about building a distributed network of inventory, stores, collection points, delivery partners and technology.
Cross-border commerce is also shifting towards local fulfilment
Cross-border eCommerce is adding another layer to the logistics conversation.
The report notes that regulatory changes have pushed platforms such as Shein and Temu towards more locally compliant supply chains and local merchant programmes. Temu has introduced local-dispatch warehouse services in South Africa, stocking some goods domestically through logistics partners for faster delivery.
This points to a broader change in competitive dynamics. Cross-border platforms may increasingly compete not only on product range and price, but also on local inventory, fulfilment speed and marketplace participation.
What this means for South African online retailers
The logistics opportunity is becoming more strategic.
As eCommerce grows, retailers need to look beyond headline delivery speed and assess the full economics of every shipment: delivery cost, successful first-attempt delivery, return-to-origin rates, tracking visibility, customer support and the ability to serve different geographic markets.
For smaller and growing merchants, access to multiple courier options can also create flexibility as order volumes, destinations and customer expectations change.
The winning logistics model will increasingly be the one that balances cost, reliability and customer experience while giving retailers enough visibility and control to make better shipping decisions.
The road ahead
South African eCommerce is no longer proving that online retail can work. It is entering a phase where operational execution will determine how efficiently that growth can scale.
With online retail expected to approach R159 billion in 2026, logistics will sit at the centre of that next phase.
For retailers, the question is becoming simple: how can every order be delivered at the right cost, to the right customer, with the least possible friction?
The answer will depend on stronger fulfilment networks, smarter courier management, better shipment visibility and logistics infrastructure built for a market that is still growing rapidly.
Source: Online Retail in South Africa 2026, a study conducted by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Africa and associate sponsors Shiprazor and Ace Labs.
