Mr. Zhang, a Shenzhen-based manufacturer of 3C accessories, has hit a wall on Amazon US and has set his sights on the African market.

He asked me, ”Is that Takealot in South Africa any good? I see Amazon has entered the market—will it be able to hold its own?”

As it happens, on July 12, Takealot reported its first profitable financial results in 15 years. The answer to this question is clearer than ever.

01

First Full-Year Profit in 15 Years

On July 12, 2026, South African e-commerce giant Takealot Group announced its full-year results for fiscal year 2025/26—in the nearly 15 years since its founding,Achieved a full-year net profit for the first timeThe

That’s no small figure. The financial report shows that the group’s revenue increased by 18% year-over-year, reaching17.7 billion South African rand(equivalent to approximately $1 billion). Adjusted EBITDA turned from a loss of 213 million rand in the previous fiscal year to a profit of 171 million rand.

The core e-commerce platform Takealot.com contributed 85 million rand in adjusted profit, with total merchandise sales up 15% year-over-year. The Group processed more than60 million orders, with active users surpassing6.2 millionThe

But profitability isn’t the only indicator. What’s really exciting for cross-border sellers is that Takealot, despite facing a three-pronged attack from Amazon, Temu, and SHEIN, hasn’t been crushed—instead, it’s only getting stronger.

CEO Frederick Zietsman made a public statement:“We’re ready to take on our cross-border e-commerce competitors.”

Market share has indeed declined from approximately 35% in 2020 to about 24% in 2025, but this decline is due to the ”pie getting bigger”—South Africa’s online retail penetration rate is currently only about 8%, far lower than that of China (30%+) and Europe and the United States (20%+), leaving enormous room for growth.

In other words, Takealot isn’t shrinking; rather, it’s growing alongside all its competitors in a rapidly expanding market. For sellers, this means the window of opportunity has just opened.

02

Four Major Barriers Support the Market Leader

Why is Takealot still the market leader in South Africa even after Amazon entered the market? Because it has four competitive moats that cross-border platforms simply cannot replicate in the short term.

First, establish an in-house logistics system.Mr D Courier, a subsidiary of Takealot, operates three major central warehouses and more than 50 pickup locations nationwide, offering same-day or next-day delivery in major cities, with a on-time delivery rate as high as99.3%. South Africa’s uneven infrastructure and the challenges of delivering to remote areas are a nightmare for all foreign platforms, but Takealot spent more than a decade building this network.

Second, payment solutions that are fully localized.Credit card penetration is low in South Africa, so Takealot supports a variety of local payment methods, including cash on delivery, EFT bank transfers, and Payflex installment plans. Amazon’s credit card-first strategy has not taken root in South Africa, whereas Takealot’s diverse payment options cater to the majority of consumers.

Third, the network of individual shoppers.In July 2026, Takealot launched a dedicated app to expand its Township program, which has grown to approximately16,000 individual shoppers. They place orders on behalf of community residents who don’t know how to shop online, earning a commission. The top participants process orders worth up to 400,000 rand per month and earn 30,000 rand a month themselves. This layer of ”personal trust” is something Amazon and Temu cannot penetrate.

Fourth, there has been explosive growth in logistics fulfillment services.Takealot Fulfilment Solutions saw its revenue grow by 93.5% year-over-year, making it the Group’s fastest-growing new business segment. This means that Takealot is not only selling products but also ”warehousing and fulfillment capabilities,” which it has begun to offer to third-party sellers, positioning itself as a competitor to FBA.

These four barriers, when combined, form a complete e-commerce ecosystem. The TakealotMore membership program accounts for 27% of the group’s GMV and boasts exceptionally strong member retention. Cross-border sellers entering this ecosystem are not there to ”steal business,” but rather to ”supplement supply”—the platform needs more high-quality products to serve its 6.2 million active users.

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03

A Practical Guide for Sellers to Get Started

It’s not enough to just know the market is good—you have to know how to break into it. Takealot’s seller onboarding process is similar to Amazon’s, but the details differ significantly.

Step 1: Register a seller account.You will need to provide a South African local company registration number or overseas company registration documents, tax registration certificate, and bank account information. Chinese sellers are typically required to register a local company in South Africa or join the platform through Takealot’s cross-border seller program.

Step 2: Product Selection and Positioning.The 62% products on the Takealot platform are sourced from local South African sellers. The advantage of cross-border sellers lies in the wide variety of products and competitive pricing offered by the Chinese supply chain. 3C accessories, small appliances, home goods, and outdoor gear are currently the categories with the highest demand.

Step 3: Selecting a Logistics Solution.There are two options: First, use Takealot Fulfillment, where you ship your inventory to the platform’s warehouse—similar to FBA—and enjoy Prime-like delivery times; second, opt for self-fulfillment, shipping through a third-party overseas warehouse to a Takealot warehouse or directly to the customer. New sellers are advised to start with Fulfillment to minimize logistics uncertainties.

Step 4: Pricing and VAT.The Takealot platform automatically withholds 15% in VAT (Value-Added Tax); sellers should factor this amount into their pricing. Recommended pricing formula: Purchase cost × exchange rate factor × 1.5–2 times, then subtract the platform commission (approximately 7%–20%, depending on the product category) and shipping costs to ensure a gross profit margin.

Step 5: Operational Optimization.Takealot’s search ranking algorithm is similar to Amazon’s: sales volume, ratings, and conversion rates. New listings can accelerate their cold start using Takealot’s Sponsored Products ad placements, and advertising costs are currently much lower than on Amazon.

04

Key Points for Tax and Financial Compliance in South African E-commerce

When moving to South Africa, making money is the first step, but compliance is the prerequisite for long-term profitability. South Africa’s tax system differs significantly from China’s, so there are several key points you must understand in advance.

VAT (Value-Added Tax).The standard VAT rate in South Africa is 15%. Starting with the 2025/26 fiscal year, the Takealot platform has implemented a unified withholding and remittance system. However, if a seller’s annual turnover exceeds 1 million rand, they must register for a VAT number with the South African Revenue Service (SARS) and file returns on time. Continuing to sell without registering for VAT constitutes illegal business operations and is subject to heavy fines.

Corporate Income Tax.The standard corporate income tax rate in South Africa is 27%. If operations are conducted through a local South African company, profits are subject to taxation in South Africa. China and South Africa have a tax treaty to avoid double taxation, but a well-designed structure is required. A common approach is to have a Hong Kong company hold a controlling stake in the South African operating company, utilizing tax arrangements between China and Hong Kong to optimize the overall tax burden.

Customs Duties and Import VAT.Goods entering South Africa are subject to import duties (rates vary by product category; approximately 5%–15% for electronics) and import VAT (15%). The South African Customs e-commerce fast track can simplify the declaration process, but requires the correct HS codes and customs clearance documents.

Capital inflows.South Africa has foreign exchange controls, and to remit profits, you must apply to SARS for a Tax Compliance Certificate. We recommend using a Hong Kong company as the recipient to transfer profits to a Hong Kong account through legitimate trade transactions, after which you can allocate the funds flexibly.

In these processes, Hong Kong companies serve as a key hub connecting the Chinese supply chain to the South African market. Registering a Hong Kong company as an intermediary trading entity allows businesses to benefit from Hong Kong’s low tax rates, reduce tax burdens in South Africa through the China-South Africa tax treaty, and conduct foreign exchange transactions in compliance with regulations.

If you’re facing a similar situation—where you need to establish a Hong Kong-South Africa compliance structure to transfer funds out of Hainan—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you implement a comprehensive end-to-end compliance solution.

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05

2026 is the window of opportunity

Looking back at Takealot’s financial report, the key takeaway is that the South African e-commerce market has proven its profitability model, but penetration remains in the single digits.

What does this mean? It’s similar to Southeast Asia in 2015—when Shopee and Lazada were just getting started, and Chinese sellers who entered early reaped the greatest rewards. South Africa today is at the same turning point.

But this window of opportunity won’t remain open forever. Amazon has already entered the market, Temu and SHEIN are shaking up the low-price segment, and Takealot itself is accelerating its expansion. Once market education is complete and the competitive landscape solidifies, customer acquisition costs for new sellers will rise exponentially.

The outlook for 2026 is clear: South Africa’s e-commerce market offers a triple advantage of ”low barriers to entry, high growth, and an open competitive landscape.” For cross-border e-commerce sellers, establishing a presence in South Africa now is not merely a nice-to-have—it’s a strategic move to secure the next growth engine.

With the right platform, a solid infrastructure, and compliant operations, the South African market is well worth the investment.

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