Why Affordable Logistics Could Be the Deciding Factor Between SME Survival and Closure

As South Africa’s economy contends with rising costs and slowing growth, small businesses are being forced to make increasingly tough decisions. From fuel hikes and power cuts to supplier price increases, margins have never been tighter. For e-commerce retailers in particular, courier costs have become the latest pressure point threatening sustainability.

While several logistics providers have implemented rate hikes of up to 20%, Fastway Couriers has announced that it will hold its rates steady — a welcome relief for SMEs fighting to stay competitive in an unforgiving market.

Logistics: The Hidden Lifeline for Small Businesses

For many small businesses, logistics has evolved from being a back-end function to a make-or-break factor. In The Insaka eCommerce Community — one of South Africa’s largest online networks for digital entrepreneurs — many store owners have voiced concern that courier price increases could “wipe out already thin margins,” forcing them to downscale operations or close altogether.

In such a climate, a logistics partner that offers pricing stability isn’t just a service provider — it’s a strategic ally.

Courier expenses typically account for 10–20% of an online store’s total costs, depending on order volume and delivery zones. When these costs rise, SMEs are left with two unappealing options: increase prices (and risk losing customers) or absorb the costs (and erode profits).

E-commerce Growth Meets Rising Costs

South Africa’s e-commerce industry has grown at double-digit rates over the past five years, driven by consumers’ appetite for convenience and nationwide delivery access. According to World Wide Worx, online retail is projected to exceed R130 billion in 2025, representing about 10% of total retail sales.

However, this growth is being challenged by surging operational costs. Analysts warn that if logistics providers continue increasing prices, they risk stalling one of the country’s most dynamic engines of SME growth.

Fastway’s Commitment: Holding Rates Steady in 2025

In a rare move within the courier industry, Fastway Couriers has confirmed it will keep rates unchanged for 2025. With a national footprint of over 800 franchisee-owned operations across 16 regions, Fastway combines the agility of local owner-operators with the scale and reliability of an international network.

At the heart of its operations is an automated Johannesburg hub capable of processing over 6,000 parcels per hour, improving productivity by up to 85%. The company also offers real-time parcel tracking, API integrations, and extended liability cover of up to R30,000 per parcel — features typically reserved for 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 risk losing both customers and profit. 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.”

Unlocking Global Potential for Local Entrepreneurs

Beyond domestic deliveries, Fastway supports small businesses looking to expand globally through its import solutions and customs clearance services. By simplifying the often complex process of bringing goods into South Africa, the company helps entrepreneurs avoid costly delays, maintain inventory, and compete more effectively.

Affordable Logistics: A Multiplier for the Economy

Industry experts argue that affordable logistics can have a multiplier effect on the economy. When SMEs can deliver more efficiently, they are more likely to reinvest in staff, marketing, and product development — all of which drive local job creation.

With SMEs contributing over 60% of South Africa’s employment and around 34% of GDP (according to the SA Banking Organisation), keeping their costs under control directly supports national economic resilience.

Stability in Uncertain Times

South Africa’s small businesses are under unprecedented strain, and logistics has become a defining pressure point. By holding its prices steady while continuing to invest in technology, scale, and service excellence, Fastway Couriers is making a strategic bet: that helping SMEs survive today will fuel broader economic growth tomorrow.