Amazon has launched its first African market operation in South Africa. The SA marketplace starts with 3,000 pickup points and is set to offer free delivery on the first order made by buyers.
However, the news of Amazon’s ambition to enter the SA market came out in 2022, pinning the launch date to February 2023. However, the company delayed it as they were ramping up hiring through 2023 and announced October 2023 as the official launch date.
At the time of Amazon’s entry into South Africa, Takealot, which owns 48% of all online sales, had dominated the market in the country. According to Takealot, the recent developments show the attractiveness of the country’s e-commerce market.
Although Takealot has a better understanding of the South African market, Amazon is still a valid competitor. The e-commerce giant will also have to align with the country’s rigid competition regulation landscape, which has made existing brands restructure their operations to fit in.
For example, in 2023, to stop sellers from competing for certain brands, the competition regulators ordered Takealot to segregate its retail division from its marketplace operations, preventing its retail services from accessing seller data and stopping the competition.
However, Amazon has the financial and competitive capabilities to take on Takealot in the South African market. Currently, Amazon.com is one of the most visited websites in the country.
