South African retailer Shoprite launches e-commerce wholesale platform

South African retailer Shoprite Holdings has launched an online platform offering wholesale shopping and delivery services to small businesses, including informal shops such as spaza shops.

The product launch marks the company’s first step into e-commerce in the wholesale sector.

“Bulk customers can now browse and purchase a wide range of goods at highly competitive prices via a fully automated online shopping system, with free delivery within a 50km radius,” the retailer said.

Shoprite said the platform was launched because spaza shops – informal convenience stores that typically operate from home – and smaller retail businesses often face significant hurdles, including high transport and fuel costs and difficulty meeting demand from the informal sector.

Shoprite Goals

Mark Cotton, head of B2B e-commerce at Shoprite Group, said the digital platform was born out of the company’s commitment to small businesses by providing innovative solutions to the specific problems they face.

“The new Cash & Carry digital platform provides customers with reliable and visible access to inventory and delivery services that eliminate the need to store excess inventory, free up much-needed cash flow and give business owners more time on the shop floor to focus on customers and growing their business,” Cotton explained.

Shoprite added that the digital platform streamlines the purchasing and order fulfilment process for Cash & Carry store merchants by allowing them to log in, access customer and product information, and place and fulfil orders more efficiently.

“Orders can be saved for future use, making the entire process more user-friendly,” the statement continued.

In addition, the digital platform offers a range of payment options online and in-store – including credit and debit cards, EFT, store credit, cash on delivery and a Shoprite money market account.

Growth of the South African Online Retail Market

South Africa’s e-commerce ecosystem has seen tremendous growth in recent years, and Shoprite’s digital platform faces stiff competition.

Shoprite is entering the e-commerce market after US e-commerce giant Amazon launched its online store in South Africa in May.

Shoprite’s digital platform will also compete with local retailers such as Makro and e-commerce players such as Takealot, a Naspers-owned company that also sells a wide range of wholesale goods.

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Shoprite’s entry into e-commerce also aligns with the Online Retail in South Africa 2024 report, which was produced in partnership with Mastercard, Peach Payments and Ask Afrika. The report revealed significant growth for the e-commerce market in South Africa in 2023.

The report found that online retail sales grew by 29% over the past year, meaning the sector is poised to cross the 100 billion rand ($5.4 billion) mark by 2026.

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*Top image shows Shoprite’s digital platform. (Source: Shoprite)

—Matshepo Sehloho, Deputy Editor, Connecting Africa