Is Online Shopping Still a Steal? What South African Consumers Really Think

Let’s be real—we have all been there, scrolling through international websites, tempted by deals that seem too good to be true. But before we hit "purchase," a million questions start racing through our minds. My research explored just what goes on in our heads when we are shopping internationally.

Key Highlights:

Here are some key findings from the research that shed light on our online shopping behaviors:

• Financial risks are top of mind. We are worried about financial implications—like unexpected shipping fees, credit card fraud, and those sneaky customs duties that pop up out of nowhere.
• Time risks are also a concern. We do not want to be stuck waiting weeks for a package, only to deal with a complicated return policy if things go wrong.
• Product performance risks is a big question mark. Will the item look and function as promised in the online description, or will it be a complete letdown?

Why This Matters

In today’s digital world, understanding these concerns is key. As South African consumers, we are juggling a lot when it comes to international e-commerce. Platforms like Shein and Temu are making waves in the shopping scene, but they are also presenting new challenges for local retailers.

My study revealed that trust is everything. The more we trust a platform, the more likely we are to click "buy." It’s about feeling secure—understanding the risks involved and knowing that the retailer has our best interests at heart.

Fun Fact:

South African online retail hit over R70 billion in 2024—an impressive 29% increase from the previous year! Clearly, we are embracing online shopping, but there is a lot we need to consider before making a purchase.

My research is not just about figures—it is about understanding the real experiences, worries, and hopes we all share as consumers in a fast-evolving digital marketplace.

Recent Developments

Since November 2024, new tax regulations introduced by SARS have made online shopping more expensive for South African consumers. These changes are meant to protect local industries and generate revenue, but they are impacting both shoppers and retailers.

Here is what has changed:

• Increased customs duties: Previously, imports under R500 were only subject to a 20% customs duty, with no VAT. Now, VAT applies to all imports, regardless of value.
• Higher overall costs: For example, a R1,000 clothing purchase now comes with a 40% duty (R400) plus R225 in import VAT, bringing the total to R1,625.
• Impact on consumers: Shoppers are feeling the pinch. An online shopper shared on social media how she had to pay R500 in customs on a R1,300 Shein order—almost half the purchase price!
• VAT changes: Foreign retailers must now charge an additional 15% sales VAT on top of the import VAT, adding even more to the cost of shopping.

These changes are really shaking up the landscape of cross-border online shopping in South Africa. It is now more important than ever to be aware of these potential hidden costs and factor them into our purchasing decisions.

So, is online shopping still a steal?

The short answer? It depends.

While online shopping offers convenience and access to a world of variety, the hidden costs—like taxes, shipping fees, and customs duties—are making it less of a "steal" for South African consumers. Overall consumer trust in the retailers and careful consideration of all the risks play a huge role in deciding if it is worth the purchase. As e-commerce continues to evolve, it is clear that while the rewards are still there, we need to be more informed and cautious than ever before.