US e-commerce giant Amazon.com is in South Africa for the long run, its regional marketplace head said on Thursday, after its first foray into sub-Saharan Africa four months ago.

South Africa is usually seen as a good entry point for companies to expand into the continent and Amazon could be doing the same, analysts have said.

Its entry comes amid a sharp rise in online shopping in South Africa after the pandemic created an opportunity for e-commerce to finally take hold, with retailers including Naspers-owned e-commerce leader Takealot doubling down on investments in response.

Unlike the fanfare arrival that shoppers expected, Amazon launched in May with limited products on its website and little marketing while it worked to bring independent sellers onto its platform. The company has not given details of its plans.

Amazon’s head of marketplace for sub-Saharan Africa, Suzelle Abe, hinted at a gradual approach, telling potential sellers at an e-commerce conference in Johannesburg that the retailer would keep building its online store with more categories and sellers.

“We want to get to know the customers. We want to get to know a lot of important learnings and through that, we keep on building,” Abe said. “And yes, we’re definitely here for the long run.”

The retailer, which made South Africa its 23rd launch country, recently added jewellery and luggage to its growing list of categories, Abe added, with more to come.

Fulfilment

Amazon has two fulfilment centres in South Africa, one in Johannesburg and one in Cape Town, and has partnered with click-and-collect companies such as Pargo and home courier companies for last-mile delivery.

Apart from Takealot.com and local retailers, Amazon is also competing with US retail giant Walmart, which owns food and general merchandise group Massmart, and low-price fast-fashion sites Shein and Temu, which have disrupted South Africa’s discount fashion market. — (c) 2024 Reuters