Zhou, a Guangzhou-based seller of 3C accessories, saw his profit margin drop to just 5% on Amazon last year. Early this year, he made a decision that surprised his peers: he shipped his products to South Africa.

Three months later, his monthly sales on Takealot exceeded 500,000 rand, with a gross profit margin consistently above 45%.

“It’s not as cutthroat here as it is in Europe and the U.S.—the return rate is less than 2%, and payments come in on time,” said Old Zhou.

If you've had enough of the price wars in the European and American markets,Takealot, South Africa's largest e-commerce platform...may very well be the next "blue ocean" you've been looking for.

On July 12, 2026, Naspers, the parent company of Takealot, announced its financial results for fiscal year 2025/26, ending March 31, 2026. This South African e-commerce platform, which has been in operation for nearly 15 years,Achieved an adjusted operating profit for the full year for the first timeThe

There are a few key figures worth noting.

The Group's total revenue was 17.7 billion South African rand, equivalent to approximately $1 billion, representing a year-over-year increase of 18%.

GMV reached $2 billion, a 14% increase year-over-year.

Adjusted operating profit went from a loss of $13 million last year to a profit of $11 million.

Order volume increased by 18% year-over-year, with 6.2 million active users contributing over 60 million orders.

What does this mean? With Takealot officially entering South Africa in 2024 and facing pressure from both Amazon and the low-price strategies of Temu and SHEIN,Not only did they hold their ground, but they also achieved a breakthrough in profitabilityThe

Although Takealot’s market share has declined from approximately 35% in 2020 to 24% in 2025, CEO Frederik Zietsman’s stance is clear: ” ”We don’t focus on our competitors; we focus on consumers. In many global markets, local platforms have maintained their lead even after international competitors entered the market—Bol.com in the Netherlands is the best example.”

Behind this confidence lies a set of assets that competitors will find difficult to replicate in the short term—In-House Logistics System: Takealot Fulfilment Solutions (TFS)The

In this financial report, what Chinese sellers should pay the most attention to is not just the profit figures, but a seemingly insignificant strategic note:In fiscal year 2027, Takealot will make TFS’s logistics capabilities fully available to third-party sellers in South AfricaThe

What is TFS? Simply put, it is Takealot’s in-house warehousing and distribution network.

In the past, TFS primarily served Takealot’s own-brand products and the platform’s top sellers. However, data shows that revenue from this business surged 93.5% year-over-year in fiscal year 2026, making it the Group’s fastest-growing new business.

Now, Takealot has decided to open this ”highway” to the public.

What exactly can it do?Warehouse intake, order picking, packing, and last-mile delivery—a full suite of fulfillment services. Sellers deliver their goods to the Takealot warehouse, and the platform handles everything from there on.

How capable is this logistics network?

First, coverage is extremely extensive. Within the 97% postal code area in South Africa, TFS has achieved a 99.3% on-time delivery rate. Same-day and next-day delivery are available in major cities.

Second, costs continue to decline. As economies of scale take effect, transportation costs have fallen by 15%.

Third, the company continues to expand its infrastructure. Following the opening of its 43,000-square-meter distribution center in Durban, Takealot has launched a new warehousing hub in Cape Town in partnership with logistics park operator Inospace, specifically to provide warehousing and fulfillment support to small and medium-sized enterprises.

For Chinese sellers, the launch of TFS means two things: First, logistics reliability has improved significantly, eliminating concerns about the unpredictability of delivery within South Africa; second, products can be labeled as ”Fulfilled by Takealot,”Gain more traffic exposure and user trust on the platformThe

Temu only just completed construction of South Africa’s first local warehouse this past January, while Takealot’s logistics network has been in operation for more than a decade. That’s what a moat looks like.

When many people hear the terms ”overseas warehouse” and ”local delivery,” their first thought is that the costs are too high. Let’s do the math.

Takealot's basic fee structure is as follows:

Monthly rent: 400 rand per month, equivalent to approximately 160 yuan.

Commission: 4%-18%, charged by product category. Commissions are lower for 3C electronics and moderate for apparel and beauty products.

Fulfillment Fee (TFS): 30–325 rand per order, calculated on a tiered basis based on the package’s weight and volume.

Storage fees: 3–150 rand per month per item; new sellers enjoy a 35-day free storage period.

Advertising costs are flexible; new stores receive a free advertising credit of 1,000 rand (approximately 400 RMB).

Regarding payments, statements are issued every Thursday. Funds can be withdrawn once delivery is confirmed and are typically credited within approximately 3 business days. We support payments to both business and personal accounts, ensuring a high level of fund security.

Compared to Amazon, Takealot’s overall fees are actually on the lower side. The monthly subscription fee of 160 yuan is practically negligible. The main cost lies in logistics and fulfillment fees, but as long as you select the right products and maintain a reasonable average order value,Achieving a gross profit margin of 40%-70% is not difficult.The

We’ve seen many Chinese sellers who sell phone cases that cost 20 yuan to produce in China for 200 rand (about 80 yuan) in South Africa; even after deducting commissions and shipping costs, they still make a profit of 50% or more.

South African consumers are far less price-sensitive than their counterparts in Europe and the United States; they are more concerned with whether they can receive their orders quickly and whether the products are of good quality. These are precisely the core pain points that TFS Logistics can address.

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Takealot offers three logistics options for Chinese sellers, each suited to different scenarios.

Type 1: Cross-border direct-to-consumer stores.Ideal for beginners testing products; no need to stock up in advance. Orders are shipped from China after they are placed, with a delivery time of 5–7 days. Initial costs are minimal, but delivery speed and user experience may be affected. The platform also imposes certain restrictions on direct-shipping stores.

Type 2: Official Cross-Border Warehouse Stores.Pre-stock your inventory at Takealot’s official warehouse using the TFS fulfillment service. Enjoy a 35-day free storage period, with delivery times reduced to 1–3 days, and the platform will allocate more traffic to your listings. This is ideal for sellers who have already validated their product selection and are ready to scale up sales.

Type 3: Local stores.You’ll need a local South African business entity and a local warehouse. You can join ”Takealot Now” to offer same-day delivery, which provides the best user experience. This is ideal for established sellers who have decided to expand their operations in South Africa.

For the vast majority of Chinese sellers, we recommend starting with a ”Cross-Border Direct Shipping Store” to test product selection and profit margins; once operations are running smoothly, upgrade to an ”Official Warehouse Store” to scale up sales using the TFS fulfillment system.

It is important to note that Takealot usesInvitation-Only Program... You cannot register directly on the official website. You must use an invitation link from an official business development manager to open a store. Currently, Chinese sellers account for less than 3% of the platform’s total, so competition is far lower than on mainstream platforms in Europe and the U.S.

The documents required for onboarding are straightforward: a business license from mainland China or Hong Kong, the legal representative’s ID, proof of transaction history from third-party platforms (such as Amazon or AliExpress store data), and a cross-border payment account. The review process takes 3–5 business days.

Although the South African market is a blue ocean, the compliance red lines must never be crossed.

First, tax compliance.South Africa imposes VAT (Value-Added Tax) on imported goods at a standard rate of 15%. For sellers shipping via TFS, the platform will withhold and remit VAT on their behalf; sellers who ship on their own must file their own VAT returns. We recommend using a third-party tax service provider to handle South African VAT to avoid having goods detained or incurring fines due to non-payment.

Second, product certification.South Africa has strict mandatory certification requirements for certain product categories. Electronic products must be ICASA-certified, and cosmetics must comply with South African SABS standards. If you’re selling electrical appliances with plugs, you’ll also need to obtain NRCS certification. If uncertified products are listed and selected for a random inspection, they will not only be removed from the platform but may also be subject to fines.

Third, brand licensing.If you are selling third-party brand products, you must provide a brand authorization letter. For private-label products, you must provide a trademark registration certificate. Takealot’s crackdown on intellectual property infringement is far more stringent than many sellers expect.

Please also note: South Africa imposes import restrictions on certain product categories, such as some clothing items and liquid products. Before setting up your store, be sure to check whether your product category is on the restricted list to avoid stocking up on inventory only to discover later that you cannot sell it.

E-commerce penetration in South Africa currently stands at only 4.3%, while Takealot holds a market share of over 30% among online shoppers. Taken together, these two figures mean:The entire market is still in the early stages of expansion.. Far from taking a bite out of Takealot’s market share, the entry of Amazon, Temu, and SHEIN has actually accelerated the adoption of online shopping among South African consumers, thereby expanding the overall market.

As e-commerce in Europe and the U.S. shifts from a ”traffic bonanza” to a ”zero-sum game,” and as Southeast Asia also begins to experience price wars, South Africa—Africa’s most developed economy and a consumer market of 60 million people—is emerging as the next growth engine for Chinese cross-border sellers.

And Takealot is the key that unlocks this door.

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