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Amazon is in South Africa for the long run, says marketplace head
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Amazon is in South Africa for the long run, says marketplace head
Sep 13, 2024 12:32 PM

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.

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