With internet connectivity becoming accessible to just about anyone with a smartphone, e-commerce (online shopping) has become a convenient way to do shopping. While taking a look at the top three South African provinces that have embraced online shopping, it is also interesting to uncover what has influenced their spending habits.
Data from Fastway Couriers gives insights into South Africa's last-mile delivery trends as a result of e-commerce shopping, a burgeoning sector that reached a record-breaking R71 billion in sales during 2023, according to a recent report. This is a 29% increase from the previous year's sales (2022), which amounted to R55 billion. Due to this notable growth, online retail now comprises 6% of total retail sales – an industry that generated R1.1 trillion during 2023.
Who are the shopaholics?
When analysing the top three provinces that have embraced online shopping, the total number of Fastway Couriers last-mile deliveries between 1 April and 30 June 2024 was examined.
Gauteng is the highest-ranking province with 53.17% of total last-mile deliveries being made here. In second place is the Western Cape, which accounted for 16.2% of all deliveries, followed by KwaZulu-Natal with only 8.5%.
According to the report, education level is the strongest factor linked to an individual's likelihood to participate in online shopping. More than half of South African online shoppers have a post-matric qualification and nearly 37% are based in cities and towns. "Another factor is the availability of disposable income - Gauteng and the Western Cape have the highest earning citizens/residents on average across South Africa," says Damian Velayadum, Group Financial Director at Fastway Couriers.
According to Statista’s Digital Market Outlook estimates, around 11.7 million e-commerce users are expected in 2025, a trajectory that is predicted to increase to 21.52 million users by 2029.
While the top three shopaholic provinces are unlikely to be dethroned, an increase in last-mile deliveries across all nine provinces is expected. With a solid foundation, e-commerce is here to stay and will undoubtedly continue to transform consumer shopping habits.
IOL