Takealot has raised its standard delivery fee and increased the minimum order value for free delivery. Customers now need to spend at least R650 to qualify for free delivery, up from the previous R500 threshold. For orders below R650, the standard delivery fee has risen from R70 to R75.
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Same-day delivery will cost R95, while next-day delivery is priced at R90 for orders below R650 and R75 for those above the threshold.
This change follows Takealot.com’s first-ever profit in the financial year ending March 31, 2024. Takealot Group CEO Frederik Zietsman attributed this milestone to the company’s growth strategy, stating that the business is now well-positioned for rapid expansion.
Zietsman explained that Takealot’s financial progress follows a typical J-curve model in e-commerce. This means that after an initial investment in fixed costs, the company can then leverage those costs to fuel significant growth. “You need to incur fixed costs ahead of your revenue curve if you are in e-commerce,” said Zietsman. “You expand your fixed cost base for the next 12–18 months, and then you grow into that base.”
Takealot last adjusted its free delivery threshold in August 2022, increasing it from R450 to R500. At the same time, the standard delivery fee went from R60 to R65. The last significant change before that was in 2017, when the free delivery threshold was set at R250, and the standard fee was R35.
Takealot explained that keeping the free delivery threshold at R250 would have been unsustainable without increasing prices and delivery charges. “The best option for our customers is to increase the qualifying minimum spend amount for free delivery,” the company said, emphasizing that this approach allowed it to maintain competitive pricing and delivery options.
Earlier this year, following Amazon’s entry into the South African market, Takealot launched its subscription service, TakealotMore, to compete with Amazon Prime. Launched in May 2024, TakealotMore offers two tiers: Standard at R39 per month and Premium at R99 per month, both offering various delivery benefits, including unlimited free next-day deliveries.
TakealotMore has seen strong adoption, with the Premium plan proving more popular, and the company credits the success to its 7-day trial offer.
It remains unclear if the recent delivery fee changes will affect TakealotMore’s minimum free delivery thresholds.
