Diana Kinyanjui 
Black Friday deals may save shoppers money at the till, but the real financial risk lies in what happens after payment — when high-value appliances, furniture and electronics travel through overloaded, often uninsured delivery networks.
This period consistently sees a spike in goods-in-transit damage, exposing a critical gap in South Africa’s retail ecosystem: most large items purchased during Black Friday are not automatically insured during transport, leaving consumers and retailers vulnerable to financial losses.
According to the Payment Association of South Africa, Black Friday 2024 recorded over 8 million card transactions in a single day, a 17% increase from the previous year, with household appliances and electronics forming a major share of spend. These categories are among the most frequently damaged when delivery systems buckle under peak-season pressure.
Global studies show the scale of the problem.
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DS Smith estimates that over 21 million items could be delivered broken during Black Friday globally due to rushed handling, packaging failures and strain on courier networks, The research further shows 64% of online shoppers have previously received items in poor condition — a trend that worsens during high-volume retail periods.
In South Africa, the risk intensifies.
The South African Insurance Association notes that goods-in-transit claims increase sharply around major retail events because road transport carries more than 70% of all national cargo, exposing goods to damage, theft and improper loading.
This intersection of high demand, fragile fulfilment systems and uninsured movement of heavy goods places Black Friday shoppers in a precarious position.
“The biggest misunderstanding during Black Friday is that once your fridge or TV leaves the store, it’s automatically insured,” said Terence Smith, Chief Executive Officer of Mr T. “In reality, most transport arrangements — especially third-party or store-arranged options — do not cover damage adequately. And when something breaks, the consumer is usually left without protection.”
Heavy-goods deliveries face unique challenges: specialised handling requirements, limited capacity, subcontractor overload, and increased exposure to loss or breakage during November peaks.
Lee-Roy Smith, Chief Operating Officer, says the consequences are often severe.
“When a big-ticket item arrives damaged, it’s not just a customer complaint — it’s a financial setback for a household that may have saved for months,” he said. “This is why insurance cannot be treated as an optional extra. During peak season, it becomes the only safeguard between a successful purchase and a financial loss.”
To address these risks, Mr T’s system incorporates built-in goods insurance, secure routing, real-time tracking and verified drivers across its national network. The insurance framework is not an add-on; it is the backbone of the platform’s design.
The technology and security layer behind this insurance architecture is provided by Nihka Technology Group, under the leadership of Founder and CEO Yashmita Bhana.
“The data is consistent every year: the highest loss ratios appear in the medium-to-heavy goods category, especially in November,” Bhana said. “People assume the delivery is protected because the item is new and the store is reputable. But unless the transport method includes goods-in-transit insurance, that assumption becomes a costly mistake.”
Bhana added that insurance is most effective when paired with transparency.
“Real-time tracking, driver authentication and secure routing reduce disputes and protect both consumers and retailers. Insurance is not just about claims — it’s about preventing damage, proving accountability and maintaining trust in the delivery chain.”
As hybrid shopping becomes more common — buying online but arranging third-party delivery, or buying in-store and relying on external transport — the insurance gap widens.
This Black Friday, the core question for consumers is shifting.
Not just: “How much am I saving?”
But: “Is my purchase protected once it leaves the store?”
In a retail environment under immense pressure, goods-in-transit insurance is emerging as the most important but overlooked safeguard for households buying the items they depend on.
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