Takealot fights back against Amazon, Shein and Temu in South Africa

South Africa’s biggest online retailer, Takealot, is now in a far better position to take on global competitors, with the eCommerce giant set to post its first full-year profit at the end of its current financial year.

The company believes the upcoming end-of-year retail period will offset the loss it made in the first half of the financial year, allowing Takealot to record its first profit since launching 15 years ago.

This comes as South Africa’s eCommerce market has become far more competitive than it was when Takealot first launched, with global entrants presenting a significant challenge to local players.

With concerns around an uneven playing field still remaining, Takealot will need a stable financial base to sustainably compete against global giants like Amazon, Shein and Temu.

Since its founding, Takealot has been a trailblazer in South Africa’s online retail space, expanding online shopping and supporting over 11,000 marketplace sellers.

Today, the company is made up of Takealot.com, and Mr D and newer initiatives like Takealot Fulfillment Solutions and Takealotmore.

In the past eight years, Takealot has managed twenty-six times gross merchandise value (GMV) growth.

However, since its founding, the company has been unable to turn a profit, despite its strong presence in South Africa’s eCommerce market.

In its parent company, Naspers’, latest interim results, Takealot recorded 15% GMV growth to $877 million (R15.10 billion), and a 3% increase in adjusted EBITDA to $28 million (R482.20 million).

However, the company still recorded negative adjusted EBIT of $4 million (R68.88 million) for the six months through September 2025. 

In a media roundtable following the release of these results, Takealot CFO Tessa Ackermann told attendees that, despite this loss, the company is on track to record a full-year profit.

Ackermann explained that October to December tends to be the most crucial retail season, as Black Friday and festive season shopping take place.

She explained that this period is expected to see higher sales and a constant fixed cost base, which drives the profit to the bottom line.

This will translate into a far stronger performance for the retailer in the second half of its financial year, wiping out the R69 million loss incurred in the first half.

She said that “should everything go right”, Takealot will be in a profitable position at the end of its 2026 financial year.

Formidable foes

Takealot will need to be in a strong financial position to maintain and grow its market share in South Africa, with global entrants having seen significant success in the country so far, with no plans to slow down.

In its 2024 full-year results, Takealot said the arrival of international players like Amazon, Shein, and Temu highlights the local eCommerce sector’s potential.

Chinese eCommerce giants Temu and Shein have seen their popularity in South Africa skyrocket over recent years, with local consumers attracted to their low prices and extensive product offerings.

Amazon launched more recently in South Africa, and has had a slow start in the country so far, although the company’s extensive reach, resources, and experience make it a formidable competitor.

Takealot has also previously highlighted the need to ensure an even playing field between local and global players.

Specifically, Takealot and other retailers have accused some of these international eCommerce platforms of exploiting outdated regulations and loopholes to lower their costs and charge unrealistically low prices.

They accused these platforms of using shipping methods that allow them to avoid duties, taxes and other government fees imposed on conventional retailers.

To address these concerns, the South African Revenue Service (SARS) has implemented measures to better level the playing field.

This has included barring international players from using the de minimis rule to pay lower import duties and no VAT, something Shein and Temu previously benefited from.

Previously, parcels containing clothing with a value of less than R500 were able to get through customs with a payment of only 20% import duty and no VAT.

In contrast, local retailers have to pay full taxes and duties on the products they import, export, or sell locally, leading to an uneven playing field.

Therefore, in 2024, the National Clothing Retail Federation of South Africa and the Southern African Clothing and Textile Workers’ Union filed formal complaints with the government.

This led to SARS deciding that orders from Shein and Temu could no longer rely on the de minimis rule, requiring shoppers to pay the standard import tax on all orders from those platforms, even if they cost less than R500.

More regulation needed

At the recent media roundtable, Takealot CEO Frederik Zietsman said that while this and other measures are welcome, the “proof will be in the pudding” as to whether they are enough to level the playing field.

“When we look at these small parcels that come in and we look at the actual tariffs and VAT that are being paid on those, are they really reflecting what our legislation is requiring them to do?” Zietsman asked.

He noted that this problem is not unique to South Africa, with many other countries also struggling to level the playing field between local retailers and global giants like Shein and Temu.

Aside from protecting local competitors, Zietsman said it is also important to consider how local consumers are being protected from dangerous products that may be sold on less well-regulated platforms.

He said this concern relates to all relevant local regulatory bodies, including the South African Health Products Regulatory Authority, the National Regulator for Compulsory Specifications or the Independent Communications Authority of South Africa.

“The safety of the South African consumer is important and I think that’s something that we need to reflect on as a society,” he said.

“That conversation will be ongoing and we’ll obviously continue our conversations as an industry and not just Takealot.com, but also as a society on how we can control those things a little bit more tightly.”