Nearly half of surveyed South African online shoppers buy from international low-cost platforms such as Temu and Shein, highlighting a shift in local consumer behaviour and intensifying pressure on domestic retailers.
This is according to new consumer research conducted by payments firm Stitch, in partnership with research firm Looka, which reveals how rapidly shopping and payment behaviour is changing in the country.
It is based on input from more than 3 000 online shoppers, conducted in March. It includes in-depth qualitative interviews and an analysis of transactions processed through the Stitch platform.
The research found that 48.5% of online shoppers now use international low-cost platforms such as Temu, Shein and AliExpress, “up from a negligible mention just two years ago”.
According to the report, this represents one of the most significant shifts in South African retail in the past decade, and it's happening faster than many merchants anticipated.
“South African consumers are increasingly shopping across multiple digital channels, while also embracing new payment methods at record pace. Direct brand websites remain the leading online destination at 74.6%, followed by retailer sites at 68% and marketplaces at 62%,” notes the study.
The research also shows that online shopping is now deeply embedded in everyday consumer behaviour.
According to the findings, 62.5% of respondents shop online as much as or more than they shop in-store, while only 2.2% still shop almost exclusively in physical stores.
The Localisation Support Fund, in a report released in 2025, noted offshore e-commerce retailers, such as Shein and Temu, are rapidly gaining ground in SA’s retail clothing, textile, footwear and leather sector, displacing thousands of local jobs, including in e-commerce.
Local remains lekker
The report notes that large local marketplaces such as Takealot and Amazon remain strong at 66.3%, but international low-cost platforms are rapidly becoming part of consumers’ regular shopping habits.
“These categories aren't mutually exclusive: consumers are adding Temu and Shein to their repertoire alongside existing platforms.”
The report further notes that local merchants continue to face growing global competition as these platforms expand in SA.
“Platforms like Temu and Shein compete primarily on price, a game that local merchants cannot win at scale.”
However, the study argues that South African businesses still have an advantage through localised payment experiences.
“The local differentiator will be payments experience, delivery speed and trust. Merchants who invest in seamless checkout and flexible payment options create a moat that cross-border platforms cannot easily replicate.”
The study further finds that consumers are increasingly prioritising convenience, pricing and seamless checkout experiences when deciding where to shop online.
Digital payments accelerate
Alongside changing shopping behaviour, the study points to a rapidly-evolving digital payments landscape in SA.
It found that 93.3% of consumers tried a new payment method in the past 12 months, up from 90% in 2025, indicating that payment preferences are becoming increasingly fragmented.
Digital wallets led adoption at 57.5%, followed by buy-now-pay-later services at 38.9% and bank-native applications such as Capitec Pay at 38.6%.
“There is no single dominant payment method in South Africa anymore.
“Debit cards lead across all categories, but their margin is shrinking as bank-native and alternative methods gain ground,” it says.
The report highlights the rapid growth of Capitec Pay, which launched in March 2023 and has already become the second most preferred payment method across groceries, online purchases and large purchases.
“For merchants, the implication is clear: bank-native payment methods are no longer niche.”
The study also found that one-click payment experiences are increasingly driving consumer adoption.
“In Q1 2026, Apple Pay became the single most-used payment method for e-commerce transactions processed through the Stitch platform, surpassing both traditional card payments and other digital wallet methods by volume.”
The study adds that convenience is now the leading factor influencing payment choice, ahead of security, rewards and speed.
“When consumers are asked what matters most in choosing a payment method, convenience wins. But security is a close second.”
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