As South Africa’s economy grapples with rising costs and slowing growth, small businesses are being forced to make impossible choices. From fuel and electricity hikes to supplier increases, margins are razor-thin and for e-commerce retailers in particular, courier costs have become the latest breaking point. While some logistics providers have announced rate hikes of up to 20%, Fastway Couriers has confirmed it will hold its rates steady, positioning itself as a rare relief for SMEs struggling to stay competitive.

In South Africa’s SME sector, logistics is no longer just a back-end cost, it’s a business-critical factor that can determine whether an online seller survives. In the Insaka eCommerce Community on Facebook, one of the country’s largest forums for digital entrepreneurs, small retailers have warned that courier increases will “wipe out already thin margins” and force many to consider cutting staff, reducing product ranges, or shutting down altogether. In this environment, having a logistics partner that shields them from further cost shocks gives business owners one less thing to worry about.

Courier costs typically account for 10–20% of an online store’s total expenditure, depending on product size and frequency of delivery. When rates rise, SMEs either pass the increase on to consumers - risking a drop in sales - or absorb the cost themselves, eating into already fragile profits.

South Africa’s e-commerce market has grown at double-digit rates over the past five years, accelerated by consumer demand for convenience and nationwide access. According to World Wide Worx, South Africa’s online retail market is expected to exceed R130 billion in 2025, accounting for 10% of total retail sales. Yet profitability remains fragile as rising courier and fulfilment costs erode margins. Yet this growth is colliding with a surge in operational costs. Analysts warn that if logistics providers push prices too high, they risk slowing the very sector that has become one of the most dynamic engines of SME growth in the country.

Unlike competitors, Fastway Couriers says current rates will remain unchanged for 2025. With a national network of more than 800 franchisee-owned operations across 16 regions, the company leverages local owner-operator care with international reach. Its Johannesburg automated hub can process over 6,000 parcels an hour, boosting productivity by up to 85% while real-time tracking, API integrations, and extended liability cover (up to R30,000 per parcel) provide technology and peace of mind usually associated with premium-priced offerings.

Damian Velayadum, Financial Director at Fastway Couriers, explains: “For small business owners, logistics isn’t just about moving parcels, it’s about survival. When competitors raise rates, SMEs face the risk of losing customers or profits, and often both. Fastway is committed to affordability, not because it’s easy, but because it’s essential. If South Africa wants to see its entrepreneurs thrive, we cannot allow delivery costs to become a barrier to growth.”

For many entrepreneurs, the next stage of growth lies in tapping into international markets. Here too, cost-effective logistics plays a decisive role. Fastway supports SMEs with import solutions and customs clearance services, simplifying the often complex process of bringing goods into South Africa. By removing delays and reducing red tape, Fastway helps small businesses keep shelves stocked, control costs, and compete more effectively in the local market.
 

Industry analysts point out that reliable, affordable logistics can act as an economic multiplier: when SMEs can scale delivery efficiently, they are more likely to reinvest in new staff, product development, and marketing which together directly contribute to local job creation. SMEs account for over 60% of South Africa’s employment and contribute around 34% to GDP (SA Banking Organisation), meaning that ensuring their survival directly impacts national economic resilience.

South Africa’s small businesses are under strain, and the courier sector has become a focal point of that pressure. By holding the line on pricing while investing in technology, scale, and service quality, Fastway Couriers is betting that supporting SMEs today will deliver long-term growth for the economy as a whole.