By Raine St.Claire
Amazon’s plans to set up operations on South African shores have been an open secret for several years now. While the official date is yet to be announced, 2024 will see the US retail giant set the stage for a marketplace battle in SA.
The company’s ability to offer a vastly superior range of products to its competitors has made it the dominant player in many of the markets it operates, and South Africa will be no different and Amazon’s arrival in South Africa is anticipated to bring about significant changes for e-commerce businesses of all sizes.
This sentiment is shared by local e-commerce players in SA, who are observing the growth of the online shopping market and anticipating the impact on smaller, burgeoning businesses, estimates the entry of Amazon is expected to turbo-charge the e-commerce sector, currently contributing around 5% of overall retail sales in SA, creating significant potential for individual and business sellers.
Once operational in South Africa, the US-based online retail giant, will compete with Naspers-owned e-commerce platform Takealot, comprising Takealot.com, Mr D Food, and Superbalist. It is also expected to rival online marketplaces such as Bob Shop, Massmart-owned Makro Marketplace, Zando, and Bidorbuy, among others.
According to Amazon, local small businesses are already “looking forward” to an opportunity to grow their businesses in the Amazon store.
“African Mamas is very excited at the prospect of working with Amazon locally, to leverage their tools and expertise to grow our e-commerce business. We cannot wait to embark on this journey of growth,” says Nomaswazi Tinus, founder and director of African Mamas Crafts.
Another business, according to Amazon, is Reader’s Warehouse, created by two brothers who grew up with a passion for books and reading.
Sean Bulpin, director of Reader’s Warehouse, states: “I am absolutely thrilled about the opportunity to partner with Amazon and sell in their store. This presents an incredible chance to expand our e-commerce business and tap into a broader customer base in South Africa.”