Amazon to stay in South Africa for the long term, says ET BrandEquity’s market chief

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US e-commerce giant Amazon.com intends to stay in South Africa for the long term, the company’s regional market chief said on Thursday, following its first expansion into sub-Saharan Africa four months ago.

Analysts say Africa’s most advanced economy is typically seen as a good entry point for companies looking to expand into the continent. Amazon could do the same.

The move comes amid a surge in online shopping in South Africa following the pandemic, which has created an opportunity for e-commerce to finally take off. In response, retailers including Naspers-owned e-commerce leader Takealot.com have doubled down on their investments.

In contrast to the fanfare that shoppers had expected, Amazon launched in May with a limited number of products on its website and little marketing as it worked to bring independent sellers onto its platform. The company did not provide details of its plans.

Suzelle Abe, Amazon’s director of Marketplace for sub-Saharan Africa, suggested a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would continue to build out its online store by adding more categories and sellers.

“We want to know our customers. We want to know many important things, and that’s how we continue to grow,” Abe said.

“And yes, we are definitely here for the long haul.”

The retailer, which made South Africa the 23rd country it is launching operations in, recently added jewellery and luggage to its growing list of categories, with more to come, Abe added.

Amazon has two fulfillment centers in South Africa, one in Johannesburg and one in Cape Town. It has partnered with click-and-collect companies such as Pargo, as well as couriers for last-mile deliveries.

In addition to Takealot.com and local retailers, Amazon also competes with U.S. retail giant Walmart Inc., which owns the Massmart Group, which specializes in groceries and everyday items, as well as fast-fashion websites Shein and Temu, which have disrupted the South African discount fashion market.