Amazon has an uphill battle locally

Bradley Prior

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Amazon has an uphill battle locally
Amazon's entry into South Africa will not be smooth sailing for the American giant as it navigates a competitive landscape and adapts to the market's unique characteristics. [Daily Investor]
 
If Amazon does not import and stock their stores with products from abroad, they will not succeed in SA. If Amazon does not offer local goods at lower rates and shipping costs like Takealot or BoB, they will not succeed in SA. If this article is correct and Amazon wants to target local sellers to sell on their platform only, then it will be a very difficult venture for them and I doubt they will ever get close to the likes of Takealot and BoB.
 
Never heard of Bash or BobShop before - I think Amazon would be just fine …

Not even tempted to visit their website

Guess Everyshop isn’t even a contender here if they weren’t mentioned
 
Never heard of Bash or BobShop before - I think Amazon would be just fine …

Not even tempted to visit their website

Guess Everyshop isn’t even a contender here if they weren’t mentioned

BobShop AKA Bidorbuy.
 
How much money are they willing to invest?
 
If Amazon does not import and stock their stores with products from abroad, they will not succeed in SA. If Amazon does not offer local goods at lower rates and shipping costs like Takealot or BoB, they will not succeed in SA. If this article is correct and Amazon wants to target local sellers to sell on their platform only, then it will be a very difficult venture for them and I doubt they will ever get close to the likes of Takealot and BoB.
My gut is they'll do very well with AmazonBasics and books from the beginning especially if they print to order in-country. I doubt local distribution channels can or will be bypassed for established brands BUT there may be an influx of competing brands facilitated by Amazon's arrival. I think Amazon's only real challenge is whether their work pace and performance measurement of staff is compatible in SA.

I've said in the past they may have issues with last mile delivery since Takealot has MrD. I'm not sure anymore as the couriers Amazon already have a relationship with can't afford to drop the ball. Might even find an Amazon/Uber alliance.
 
nope, thats not how it works
It very well could be for certain products. They have decades of data of what south african's have been preferring to buy offshore - I doubt they'll ignore what's popular. As a side benefit - I'd expect an improvement in international delivery costs for Amazon.com/.uk/.de purchases to cheaper than pre-covid levels as they'll most likely have a dedicated Amazon route to SA.
 
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