By Nqobile Dludla
JOHANNESBURG, Sept 12 (Reuters) - U.S. e-commerce giant
Amazon.com ( AMZN ) 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.
Africa's most advanced economy is usually seen as a good
entry point for companies to expand into the continent and
Amazon ( AMZN ) 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.com doubling
down on investments in response.
Unlike the fanfare arrival that shoppers expected, Amazon ( AMZN )
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 ( AMZN ) 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.
Amazon ( AMZN ) 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 ( AMZN ) is also
competing with U.S. retail giant Walmart Inc ( WMT ), 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.