As South Africa’s economy battles rising costs and slowing growth, small businesses are being forced to make tough choices. From fuel and electricity hikes to supplier increases, margins are shrinking fast. For e-commerce retailers, 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 for 2025, offering a rare lifeline for SMEs struggling to stay competitive.
Logistics: The Line Between Survival and Closure
In South Africa’s SME sector, logistics is no longer a back-end cost — it’s a business-critical factor that can determine survival.
On the Insaka eCommerce Community Facebook group, one of the country’s largest forums for online retailers, small businesses warn that courier increases could “wipe out already thin margins” and force job cuts or even closure. In this environment, having a logistics partner that shields them from further cost shocks gives entrepreneurs one less thing to worry about.
Courier fees typically account for 10–20% of an online store’s expenses, depending on product size and delivery frequency. When rates rise, SMEs either pass the increase on to customers — risking fewer sales — or absorb the cost, eroding profits even further.
E-Commerce Growth vs. Rising Costs
South Africa’s e-commerce market has grown at double-digit rates over the past five years, driven by consumer demand for convenience and accessibility. World Wide Worx predicts online retail will exceed R130 billion in 2025, accounting for 10% of total retail sales.
But profitability remains fragile. Analysts warn that if courier prices climb too high, they could slow down one of South Africa’s most dynamic sectors for SME growth.
Fastway’s Approach: Holding the Line
Unlike competitors, Fastway Couriers will keep its current rates unchanged for 2025. With a national network of more than 800 franchisee-owned operations across 16 regions, Fastway combines local owner-operator care with international reach.
Its Johannesburg automated hub processes over 6 000 parcels per hour, boosting productivity by up to 85%, while real-time tracking, API integrations, and extended liability cover (up to R30 000 per parcel) deliver technology and reassurance usually found in premium-priced services.
“For small business owners, logistics isn’t just about moving parcels — it’s about survival,” says Damian Velayadum, Financial Director at Fastway Couriers. “When competitors raise rates, SMEs face losing customers or profits, sometimes both. Fastway is committed to affordability, not because it’s easy, but because it’s essential. If South Africa wants its entrepreneurs to thrive, we cannot allow delivery costs to become a barrier to growth.”
Enabling SME Growth at Home and Abroad
For many entrepreneurs, the next step lies in expanding into international markets. Fastway supports SMEs with import solutions and customs clearance, simplifying the often complex process of bringing goods into South Africa. By reducing delays and red tape, Fastway helps businesses keep shelves stocked, control costs, and compete effectively.
Industry analysts note that affordable logistics act as an economic multiplier: when SMEs can scale deliveries efficiently, they reinvest in staff, new products, and marketing — all of which drive job creation. SMEs currently provide over 60% of South Africa’s employment and contribute around 34% to GDP (SA Banking Organisation), meaning their survival directly impacts national economic stability.
Investing in the Future of SMEs
South Africa’s small businesses are under pressure, and the courier sector has become central to that strain. By holding prices steady while investing in technology, scale, and service quality, Fastway Couriers is betting that supporting SMEs today will build a stronger, more resilient economy tomorrow.
