Two years after announcing its intentions, Amazon has finally launched its e-commerce platform in South Africa, marking its entry into the sub-Saharan African market. Already operational in Egypt through the acquisition of Souq in 2017, South Africa represents Amazon’s first direct marketplace in sub-Saharan Africa. It enters a competitive field, vying against local giants like Takealot (owned by media conglomerate Naspers), Makro, and Bob Group's bidorbuy, in a market estimated to generate $3 billion in e-commerce revenue annually.

Unlike its usual launches, Amazon has foregone its popular Prime membership program for South Africa. This absence means no free shipping on a plethora of items, no media services, and no exclusive service tiers—a typical lure to keep consumers returning and spending. Initially, Amazon plans to offer a mix of international and local brands across roughly 20 product categories, promising same-day and next-day deliveries. To attract customers, it offers free shipping on the first order and subsequent purchases above R500 (~$27).

The entry is seen by local e-commerce entrepreneurs like Jumia CEO Francis Dufay as a testament to the robustness of South Africa's e-commerce market. This comes especially after global e-commerce experienced fluctuations during the peak of the COVID-19 pandemic. "Competition is good news, validating the opportunity in African e-commerce and aiding market growth," Dufay commented to the media.

Amazon had originally planned to launch in both Nigeria and South Africa two years ago. This expansion aligns with its broader focus on Africa, highlighted by the inauguration of its first African AWS region in South Africa in 2020. However, subsequent delays pushed back its South African launch to now and its Nigerian debut remains postponed with no confirmed start date.

Despite these challenges, the potential for growth in Africa’s nascent digital commerce landscape is significant. With logistics and consumer habits still evolving, Amazon's entry could catalyze further development in this sector. Robert Koen, Amazon’s managing director for sub-Saharan Africa, expressed enthusiasm about the launch: "We are excited to launch Amazon.co.za, offering great value, a wide selection of products, and a convenient shopping experience to South African customers. Establishing strong relationships with local brands and businesses is a priority for us."

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Amazon’s arrival adds a new dimension to South Africa's online retail scene, where Naspers' Takealot currently dominates nearly half of all online sales. With Walmart-owned Massmart also preparing an e-commerce initiative and following a pandemic-induced spike in online shopping, retailer investment in digital platforms in South Africa is intensifying.

However, it is still worth noting that Amazon already operates in Egypt and has declined to comment on the introduction of Prime in South Africa or its plans for launching in Nigeria.

Culled from TechCrunch