Amazon finally launches in South Africa, cranks up e-commerce competition

After years of speculation about a launch date and a high-profile controversial development in the old River Club property in Cape Town, Amazon has finally announced it’s open for business in South Africa. 

Until now, local customers have been able to order from Amazon.com, but delivery would take weeks, require customs clearance and attract taxes. Amazon.co.za’s arrival means customers in South Africa can now shop for local and international brands and either collect from more than 3,000 points in the country, or have items delivered – even on the same day. 

More than 60% of products Amazon sells globally are from independent sellers, mostly small and medium-sized businesses. In October 2023, the company called for independent sellers to sign up to its platform ahead of its official launch in the country. It offers two flexible selling plans: Individual (for those who plan to sell fewer than 40 items per month) and Professional. 

Famously customer-centric, Amazon will also offer returns within 30 days, 24/7 customer support and free delivery on first orders of products fulfilled by Amazon. They will also get free delivery for orders worth more than R500.

Customers will receive status updates too and order tracking: Amazon does this through WhatsApp, which solves one of the biggest irritations of e-commerce: the overly long delivery window.

Amazon also claims that customer support will be available by phone, email and live chat.

In a company statement, Robert Koen, managing director of Amazon sub-Saharan Africa, said they were excited to launch their local division.

Amazon customers can also choose a gift option for some products, through its partnership with goGOGOgo, a South African NGO focused on improving the income and health outcomes of third-generation caregivers (grandmothers) and the children they are raising. Through this partnership, gogos package products in handmade gift bags.

Takealot has been bracing for Amazon’s launch for months. Last month, the local e-commerce leader, which incorporates the Takealot.com, Mr D and Superbalist platforms, conceded that it was under immense pressure from Shein and Temu, and was concerned about Amazon’s imminent arrival.

This concern motivated Takealot’s Township Economy Initiative, a R150-million partnership between Takealot and the Gauteng government. At the launch, Takealot.com CEO Frederik Zietsman told News24 they had already seen a fallout from Temu’s arrival in January, which has doubled costs since the start of the year. 

“And that not only impacts Takealot, it impacts all the small businesses that try to transact online because the cost of acquisition is going up. So, there’s inflationary pressure from these new entrants.” 

However, in welcoming the competition, Zietsman said he was confident that Takealot could hold its own against the new competitors by focusing on giving its customers what they wanted and serving them better. 

International competition will up the stakes for e-commerce and be good for the consumer, who will have more choice in not only e-tailers but also in the products and how they are served. DM