In 2023, South African e-commerce retailers began introducing subscription services offering free deliveries and added benefits, following the global success of models like Amazon Prime.
A year later, our data reveals fascinating insights bringing us to question just how ready South African consumers are to pay for these monthly subscriptions – do they see value and what does this mean for South African retail strategy?
The Evolution of Retail Subscriptions
Membership-based retail shopping went big during the mid-20th century USA, gaining momentum in 1983 with the introduction of Costco and Sam's Club. Today, Costco's $65 annual membership fee generates a massive $4.8 billion in revenue per annum.
Although the total fees made off its 75 million paid members only represent roughly 2% of its total revenue, its real value lies beyond being a revenue source. Its subscription models allow for Costco to:
- Understand changing consumer preferences in near real-time
- Earn more predictable revenue
- Drive enhanced customer loyalty
- Improve inventory management and logistics
With these benefits, it’s no wonder subscription-based membership models have become a big focus for the most prominent in-store and e-commerce retailers.
In 2025, Amazon launched Prime with a $75 annual “membership fee” for unlimited fast shipping. Today, Prime serves over 180 million subscribing members. With an unchanged annual fee, same-day shipping, and an expanding suite of products and services – it's unsurprising that subscribers now generate +- $24.5 billion for the company annually.
This evolution from simple delivery benefits to comprehensive service bundles offers valuable lessons for South African entities seeking revenue and customer loyalty opportunities.
Let’s dive into the South African subscription space…
South Africa's Subscription Landscape
This behavioural shift is already taking hold in South Africa. While still in its early stages, the subscription retail market is showing real momentum. Checkers Xtra Savings Plus, Uber One, and Takealot More are leading the way, offering customers a mix of free delivery, discounts, and exclusive deals. Even beyond these major players, South African retailers are exploring new subscription-driven strategies, with initiatives like Proudly South African and Digital Retail Africa 2025 pushing for local subscription services to compete with international rivals.
South African consumers seem ready for this shift. The country’s mobile commerce dominance presents a unique opportunity — subscription models integrated with mobile platforms could reach more customers than ever before. At the same time, economic pressures are making value-driven convenience more attractive, giving retailers a powerful way to drive long-term loyalty.
📊 Want to see what the data reveals about Uber One and Checkers Xtra Savings Plus?
We analysed South African transaction data to uncover how subscriptions are reshaping consumer behaviour.
Sign up to Reveal Insights to read the rest — and get insights like this in your inbox every month.
