Amazon.com has announced its official entry into the South African e-commerce market, marking a significant step for the retail giant. Although the launch of e-commerce operations in South Africa has been postponed until 2024, Amazon is already accepting registrations from local sellers at sell.amazon.com/south-africa, a clear indicator of its commitment to the market.
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Robert Koen, General Manager for sub-Saharan Africa at Amazon, expressed enthusiasm for the upcoming launch of amazon.co.za in South Africa. The company aims to provide local sellers, brand owners, and entrepreneurs of all sizes with the opportunity to grow their businesses with Amazon, while also delivering exceptional value and a convenient shopping experience to customers across South Africa.
Amazon’s strategy in South Africa hinges on the attraction of third-party sellers, which it sees as a cornerstone of its approach. The company underlined that over 60% of the sales in Amazon’s store originate from independent sellers, resulting in an extensive product selection, competitive pricing, and enhanced convenience for consumers.
Amazon’s presence in South Africa has been well-established through its subsidiary, Amazon Web Services. With development and support centres located in Cape Town, Amazon has also set up data centre infrastructure in the region to provide cloud computing services to both the South African market and the broader African markets.
The introduction of an e-commerce marketplace in South Africa has been a highly anticipated development, with initial speculations about Amazon’s plans to launch marketplaces in both South Africa and Nigeria emerging in 2022.
Moreover, there have been reports indicating that Amazon intends to introduce its highly acclaimed Prime loyalty program to the South African market. This program is set to offer subscribers expedited delivery services, as well as access to Amazon’s streaming platforms, including Prime Video and the popular game streaming platform, Twitch.