E-tailer Takealot.com is seeing more South Africans shopping online, with customer growth bolstering the platform’s half-year results, released this week.
Despite competition from new international entrants like Amazon, Shein and Temu, the Naspers-owned e-commerce site says it now has 4.8 million active shoppers, a 14% increase from last year, with order frequency up 11% year-on-year.
According to a statement unpacking the platform’s annual performance, this growing customer activity has helped drive 20% revenue growth on the platform and a 29% growth in gross profit, showing that customer growth − and more repeat visits − are directly lifting the platform’s performance.
Takealot.com’s marketplace has grown to over 18 000 marketplace sellers. Sales from third-party sellers grew 17%, and now make up 62% of the platform’s total gross merchandise value.
This, as SA’s online sales are predicted to reach 10% of total retail sales by the end of the year, with the e-commerce sector on track to surpass R130 billion by the end of 2025, according to a World Wide Worx report.
Factors contributing to an increase in online shopping include the growth of internet penetration in SA, mobile phone adoption, improved security of payment infrastructure and convenience, it says.
In July, the e-tailer established Takealot Fulfilment Solutions (TFS), a business unit of the Takealot Group that offers a suite of logistics, courier and supply chain services to other businesses. It combines the group's existing logistics infrastructure − including freight forwarding, warehousing and on-demand delivery − into one integrated system to help companies streamline their operations.
“TFS supported a growing number of order volumes, with 99.3% on-time delivery. TFS also on-boarded 2 500 new customers, couriered over 1.5 million units, and reduced shipping costs by 15%, helping keep the service reliable even as customer numbers increased,” it says.
The Takealot Group − which comprises Takealot.com, Mr D and TFS − recorded year-on-year revenue growth of 23% in the six months ended 30 September.
Takealot Group CEO Frederik Zietsman says the results show the impact of bringing the company’s different services − Takealot.com, Mr D, TakealotMORE and TFS − into one ecosystem.
This approach is encouraging customers to shop more often, he notes.
“Our results show that when purpose, sound strategy and scaled implementation intersect, sustainable profit comes within reach.
“We have integrated our marketplace, on-demand delivery and fulfilment services into an integrated, self-supporting system. As a result, our consumers are shopping more often on our platforms.”
Across the Takealot Group, 30 000 SMEs are now trading online, along with 12 000 restaurants, 17 000 delivery drivers, and 9 000 township personal shoppers are supported across the network, he adds.
Tshepo Marumule, Takealot Group head of external affairs and public policy, comments: “Our growth story is inseparable from South Africa’s digital-economy progress. Through the Takealot Township Economy Initiative, we are investing in redefining the township and rural economy, driving economic inclusion and bridging the digital divide.
“This is achieved through focused skills development initiatives, the on-boarding of thousands of SMEs and expanding last-mile partnerships that create jobs and sustainable income opportunities where they’re needed most. Inclusive growth strengthens the very economics that power our profitability journey.”
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