South Africa’s online retail market is expected to reach R159 billion in 2026, growing about 22.5% annually. Yet this expansion is creating a new challenge for retailers: attracting consumers with internet access who have never completed an online purchase.
With Amazon, Temu and Shein competing against established local businesses such as Takealot, Shoprite and Truworths, promotional strategies are changing. Discounts remain common, but retailers are also investing in subscription benefits, loyalty incentives, and improved digital purchasing processes.
As Black Friday, seasonal, and holiday shopping approaches, the industry faces a question that goes beyond pricing: how can online businesses reach more South Africans instead of repeatedly competing for the same customers?
Promotional Offers Extend Beyond Traditional E-Commerce
Promotional strategies are no longer limited to online retailers selling physical products. Across South Africa’s digital economy, businesses in sectors such as fintech, subscription services, food delivery, and online gaming use introductory incentives to attract new customers. These offers take different forms, including cashback, referral rewards, discounted subscriptions and account registration bonuses.
The online gambling sector provides another example of how promotional models have expanded across digital services. As with e-commerce promotions, these incentives often come with eligibility conditions, spending requirements, or expiry dates that affect their real value. Some of these promotions include free spins or no-deposit options, allowing online casino operators to offer incentives without necessarily requiring an initial deposit.
For instance, there are sites with offers of 120 free spins for real money in South Africa, illustrating how specific promotional rewards are used to distinguish offers in the online gambling market. The conditions attached to these promotions can vary, particularly wagering requirements, eligible games, and withdrawal rules.
South Africa’s Retail Growth Is Not Reaching All Internet Users
The latest Online Retail in South Africa 2026 report, produced by World Wide Worx in partnership with Mastercard, Peach Payments and Ask Afrika, forecasts that online sales will account for 10% of national retail turnover during 2026. However, the research also identifies a considerable gap between internet usage and online purchasing.
Based on 23,910 interviews conducted in 2025, the findings show that 79.1% of South African adults use the internet, but only 34.2% shop online. This means retailers are expanding sales in a market that still excludes a substantial share of connected consumers.
Specno CEO Joshua Harvey has argued that retailers should reconsider how they attract customers, particularly ahead of major promotional periods such as Black Friday.
Obstacles include high delivery charges, minimum-order requirements, payment concerns, mobile data costs, and limited local-language support. Addressing these problems could help retailers reach customers who currently remain outside the online market, rather than relying on promotions aimed at existing buyers.
Subscription Benefits and Delivery Costs Are Changing Retail Competition
Competition among South African online retailers increasingly extends beyond individual product discounts. Subscription-based delivery benefits, faster fulfillment, and recurring savings are becoming part of how businesses encourage customers to order more often.
For example, Shoprite’s Xtra Savings Plus subscription offers unlimited qualifying deliveries for R99 per month. Amazon Prime, meanwhile, operates at R59 per month in South Africa. Both models demonstrate how businesses can structure recurring customer benefits around delivery convenience and ongoing access to services.
The expansion of international platforms such as Shein, Temu and Amazon has also increased pressure on local retailers to reconsider fulfillment costs and delivery speed. Takealot, Truworths and The Foschini Group are among the established businesses competing for online spending as consumers gain access to a wider range of sellers.
For retailers, the challenge involves balancing competitive prices with the costs of processing and delivering orders. A discounted product may attract attention, but extra delivery charges or long wait times can shape the final purchase decision, especially among consumers comparing several platforms.
Payment Uncertainty and Mobile Data Costs Remain Barriers to Online Shopping
South Africa’s expanding digital retail market still faces practical obstacles that promotional discounts can’t solve. Payment uncertainty, expensive mobile data, and unreliable connectivity can prevent consumers from completing purchases even after they have selected products.
Specno has identified the checkout process as an area that needs more attention, particularly for first-time shoppers using entry-level smartphones. Customers may encounter unexpected delivery charges, unclear payment confirmations, or interruptions that force them to restart transactions.
Retailers can reduce these problems by displaying delivery availability and charges before the final checkout stage. Clear payment instructions and accessible customer assistance can also help consumers understand the status of interrupted transactions.
Another improvement involves preserving shopping baskets when mobile connections fail. This allows customers to resume their purchases without selecting the same products again.
Testing promotional campaigns under ordinary mobile conditions is equally important. A checkout system that performs well on office Wi-Fi may behave differently on slower connections, affecting how many customers complete transactions during high-demand sales periods.
Customer Reviews and Targeted Promotions Gain Influence Over Traditional Advertising
Promotional strategies are also changing as South African retailers reassess what influences purchasing decisions. Industry findings indicate that customer reviews and promotions account for 55.3% of purchase decisions, compared with 5.4% for traditional brand advertising.
The figures suggest that consumers place considerable weight on visible offers and feedback from previous customers. For online retailers, this increases the commercial importance of transparent product ratings, reliable customer reviews, and promotional information that customers can understand before checkout.
Businesses are responding with more targeted discounts, loyalty rewards, and referral incentives rather than relying exclusively on broad advertising campaigns. These approaches let retailers distinguish between first-time buyers and regular shoppers.
However, greater promotional activity also introduces costs. Discounts reduce margins, while cashback incentives and recurring membership benefits require businesses to account for the value of repeat transactions. With online retail sales forecast to reach R159 billion in 2026, South African businesses face increasing pressure to make promotional spending more effective while improving access for consumers who have not yet entered the digital shopping market.
