Amazon launches online shopping service in South Africa

JOHANNESBURG (Reuters) -Amazon launched its online shopping service in South Africa on Tuesday, challenging a host of online retailers dominated by Naspers’ Takealot.com.

Africa’s most advanced economy is generally seen as a good entry point for companies to expand on the continent and Amazon could be doing the same, analysts have said in the past.

The launch of its service comes at a time when South Africa has seen a sharp increase in online shopping, after the pandemic created an opportunity for e-commerce to finally take hold, with retailers doubling down on investment in response.

Amazon.co.za will offer same-day delivery and next-day delivery with over 3,000 collection points. Buyers will get free delivery on their first orders, followed by free delivery on subsequent orders over 500 rand ($27.07), it said in a statement.

Customers in South Africa will be able to shop from a selection of local and international brands across 20 different product categories such as consumer electronics, household appliances and small kitchen appliances, including international brands such as Apple, Amazon said.

More than 60% of items sold in Amazon stores around the world are from independent sellers – the majority of which are small and medium-sized businesses.

“Building strong relationships with South African brands and businesses is incredibly important to us. We want Amazon.co.za to be the place where they can reach millions of customers,” said Robert Koen, managing director of Amazon Sub-Saharan Africa.

South Africa’s growing and evolving retail sector has also attracted international fast fashion e-commerce retailers Shein and Temu, with their rapid growth driven by robust demand for their low-priced apparel. Temu was launched in the country earlier this year.

Retailers are also doubling down on investments in e-commerce as internet connectivity and smartphone penetration increase in the country.

($1 = 18.4720 rand)

(Reporting by Nqobile Dludla, editing by Louise Heavens)