Amazon has just announced the launch of Amazon.co.za in 2024, which will empower South African-based sellers to connect with customers across the nation as of the following year. The newly introduced marketplace will be housed on Amazon.co.za, with the rollout commencing on the 17th of October 2023. As of now, independent South African sellers are encouraged to enrol their businesses on sell.amazon.com/south-Africa.
Highlighting the significance of independent sellers, Amazon revealed that over 60% of sales within its stores originate from these vendors, with a majority being small and medium-sized businesses. These entities contribute to a diverse product selection, competitive pricing, and enhanced convenience for consumers. Starting today, the 17th of October, 2023, independent South African sellers can initiate the registration process.
The introduction of Amazon’s presence in South Africa has stirred discussions about its potential impact on the broader African e-commerce sector. While many foresee Amazon’s dominance potentially displacing several existing e-commerce ventures, others view this move as a positive driver for supply chain transformation and as a potential catalyst for the AfCFTA (African Continental Free Trade Area) process.
“This development is expected to unlock new export and import prospects across the continent”
This development is expected to unlock new export and import prospects across the continent, necessitating a revamp of logistics and border procedures to accommodate Amazon as Africa positions itself on the global stage. Although challenges are anticipated, the benefits are predicted to overshadow any drawbacks. Despite the initial resistance, it is predicted that Amazon’s operations will expand across Africa in the coming years, requiring substantial infrastructural investments such as dry ports and improved road networks.
Presently, Takealot, owned by Naspers, leads South Africa’s online retail market with a gross merchandise value (GMV) of R27 billion. Other key players include Makro, owned by Massmart, as well as Checkers Sixty60 and Mr Price. Statistics from Statista project an 11.89% growth in the e-commerce market over the next three years. Expectations are that the current 2% of retail sales occurring online will rise to approximately 6.8% due to high internet and smartphone penetration, coupled with evolving consumer behaviour influenced by the Covid-19 pandemic.
Despite the optimism, apprehensions persist regarding the potential acquisition of these ecommerce businesses by Amazon, which could lead to the suppression of these enterprises either through forced closures or their acquisition by the American e-commerce giant.
Robert Koen, the general manager for Amazon’s Sub-Saharan Africa region, stated, “We look forward to launching Amazon.co.za in South Africa, providing local sellers, brand owners, and entrepreneurs, small and large, the opportunity to grow their business with Amazon, and deliver great value and a convenient shopping experience for customers across South Africa.”
The African continent is now awake, we will start experiencing a massive influx of investment in roads, transport and logistics, warehousing, and construction a few years from now.
