The debut of Amazon in South Africa marks a pivotal moment in the evolution of e-commerce.
According to Warrick Kernes, eCommerce Expert & CEO of The Insaka eCommerce Academy, the fact that the largest eCommerce business in the world has come to SA proves that there is still major growth in eCommerce in SA. If that wasn’t the case, they wouldn’t have come here. Discovery’s recent Spend Trend report backs up this sentiment, showing that growth in online shopping surpassed growth in brick-and-mortar sales last year.
With Amazon.co.za now live, the global giant brings promises of innovation, competition, and shifts in consumer behavior.
“We are excited to launch Amazon.co.za, along with thousands of independent sellers in South Africa. We provide customers with great value, broad selection—including international and local products—and a convenient delivery experience,” said Robert Koen, managing director of Sub-Saharan Africa, Amazon. “From today, customers can count on Amazon.co.za for a stress-free shopping experience, fast and reliable delivery, access to 3,000 pickup points, 24/7 customer support, and easy returns. Customers will also enjoy free delivery on their first order.”
With its wide product range and efficient delivery, Amazon’s arrival ignites a battle for market share, driving local e-commerce platforms to innovate and adapt.
Previously, Naspers-owned Takealot dominated the market, commanding 48% of all online sales. Amazon’s entry sets the stage for a compelling rivalry, as Takealot views it as a testament to the attractiveness of South Africa’s e-commerce market. This is expected to fuel a battle for market share, pushing local players to innovate and adapt to maintain their positions.
A Boost for Local Sellers
Interestingly, Amazon’s platform offers local sellers the chance to reach a wider audience. Through partnerships with Amazon, South African businesses can leverage the platform to expand their reach and grow their operations.
While Amazon’s entry poses as a threat to local e-commerce players, it also presents opportunities that South African retailers might consider implementing to ”stay in the game”
- Takealot and others like Shein & Temu can leverage their local expertise and customer relationships to offer unique products and services by tapping into Amazon’s global customer base to expand & reach a broader audience.
- Explore partnerships with local courier services for same-day or next-day delivery.
- Explore partnerships with other retailers to create joint promotions or loyalty programs.
”So, while Amazon’s SA store launch is a threat for established marketplaces, it certainly represents a massive opportunity for those who are going to list their products on the marketplace and make the most of this opportunity.” Warrick Kernes, eCommerce Expert & CEO of The Insaka eCommerce Academy
