Amazon’s much-anticipated entry into Africa has come to fruition, with the tech giant announcing the launch of its e-commerce marketplace in South Africa on Tuesday.
In a statement, the e-commerce giant revealed that its localized platform, Amazon.co.za, will offer customers access to a wide range of local and international brands spanning 20 product categories. Additionally, it promises same-day and next-day delivery, facilitated by over 3,000 collection points, as well as free delivery for the first and subsequent orders over R500 (~$27).
The news comes two years after Amazon first revealed plans to enter the continent with markets located in Nigeria and South Africa. The expansion, known as “Project Fela,” has faced several delays, pushing back the original launch dates for both countries. While the Nigerian launch, scheduled for February 2023, has been put on hold, the South African debut, set for April 2023, has been postponed to October and later this year. Last October, Amazon began onboarding independent sellers in South Africa and made recruitments in the areas of merchant development, software development and operations, indicating its imminent arrival.
“We are delighted to launch Amazon.co.za, alongside thousands of independent sellers in South Africa. We offer our customers great value, a wide selection, including international and local products, and a convenient delivery experience,” said Robert Koen, Amazon general manager for sub-Saharan Africa, in a communicated. “Building a strong relationship with South African brands and businesses, large and small, is extremely important to us. We want Amazon.co.za to be the place where they can reach millions of customers.
Amazon’s entry into the South African market introduces competition to a 55 billion rand (~$3 billion) sector largely dominated by Naspers-owned Takealot, which accounts for almost half of all sales in line in this southern African country. Walmart-owned Massmart is also preparing to launch its own e-commerce campaign. The timing of Amazon’s launch also coincides with an increase in online shopping in South Africa following the pandemic, which has spurred increased investment by retailers in the e-commerce sector.
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