JOHANNESBURG, Sept 12 (Askume) – U.S. e-commerce giant Amazon (AMZN.O) will be better placed in the long term to expand in South Africa after making its first foray into sub-Saharan Africa four months ago, its regional market chief said on Thursday .
Africa’s most developed economies are often seen as good entry points for companies to expand into the continent, and Amazon could do the same, analysts say.
The company’s arrival comes amid a surge in online shopping in South Africa, with the pandemic ultimately creating an opportunity for e-commerce, with retailers including Naspers’ (NPNJN.J) e-commerce leader Takealot.com stepping up efforts and investing in response.
Contrary to the fanfare expected by shoppers, Amazon launched its site in May with limited offerings and little marketing while working to bring independent sellers to its platform. The company has not disclosed details of its plans.
Suzel Abe, Amazon’s sub-Saharan Africa head, signaled a gradual approach, telling prospective sellers at an e-commerce conference in Johannesburg that the retailer would continue to build out its online store with more categories and sellers.
“We want to understand our customers. We want to understand a lot of the important lessons learned as we move forward,” Abe said.
“Yeah, we’ll definitely be here for a long time.”
Abe said the retailer, which makes South Africa its 23rd launch country, recently added jewellery and accessories to its growing list of categories, with more categories to come.
Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies like Pargo and home delivery companies for last-mile deliveries.
Besides Takealot.com and local retailers, Amazon competes with U.S. retail giant Walmart Inc (WMT.N) , which owns food and department store group Massmart, and low-price fast fashion sites Shein and Temu, which have disrupted the South Korean market.
