Takealot crackdown

[Bianke Neethling]

Takealot crackdown

The Competition Commission is punishing Takealot for its success rather than cracking down on anti-competitive behaviour.

 

[Sapphiron]

"Success"

 

[rvZA]

Here in South Africa we must all unite and support the ANC. We can never, ever, ever, have a person starting up a small business, growing it over years and then become a sole market leader. We must force these companies to share their profits with us, rather than re-investing it in the business. We must force these companies to share their IP and tech with other smaller or bigger companies without compensation. This is the only way we can go forward and live together in peace.

 

[Acinixys]

I'm glad they are being pushed to improve

Their site is full just copy paste China **** that gets promoted to the top

Just search for something like backpacks or headphones and you get thr same product 100 times from different sellers

They are as bad as Amazon nowadays

 

[quovadis]

Being at the scale of Takealot while being unprofitable year after year and yet still “competing” against those without such luxury is not a success for the market.

 

[blunt]

The question is, will it change? A lot of talk, and rightfully so, I just hope there is a legitimate way to fight it that someone is pursuing

 

[Bewlen]

Agree with Van Dijk on this.

Strange to see people giving enterprises such as TaL and WeBuyCars such massive amounts of hate. So much choice to the consumer. But as soon as the options are restricted and regulated, the same consumer will crucify them for the alternative model.

 

[Swa]

He's not giving the full picture. For years Takealot was subsidised by the big behemoth Naspers to give the public discounts and incentives. Now that they have become dominant by forcing other smaller guys out of business which I personally supported the incentives have stopped, the service is bad and the prices are sky high. Now people want the smaller guys back in business but it's too late. Sometimes consumers are their own worst enemies why I like to support the smaller guys or "underdogs".

A free market isn't always a good thing sometimes resulting in less competition and choice. We are also not the only ones to see this. The U.S. is looking into the actions of Amazon while the E.U. is looking into companies like Microsoft and Google so it's not like investors are deterred by effective regulation when it happens all over the world.

 

[konfab]

Being at the scale of Takealot while being unprofitable year after year and yet still “competing” against those without such luxury is not a success for the market.

So you have a problem with very rich shareholders giving their money to ordinary people?

 

[lkswan747]

 

[quovadis]

So you have a problem with very rich shareholders giving their money to ordinary people?

No, I have a problem with a company being characterized as a success while being unprofitable year after year.

Edit: Just to add - it’s hardly a bunch of ordinary people. Takealot is wholly owned by Naspers.

 

[B-1]

He's not giving the full picture. For years Takealot was subsidised by the big behemoth Naspers to give the public discounts and incentives. Now that they have become dominant by forcing other smaller guys out of business which I personally supported the incentives have stopped, the service is bad and the prices are sky high. Now people want the smaller guys back in business but it's too late. Sometimes consumers are their own worst enemies why I like to support the smaller guys or "underdogs".

A free market isn't always a good thing sometimes resulting in less competition and choice. We are also not the only ones to see this. The U.S. is looking into the actions of Amazon while the E.U. is looking into companies like Microsoft and Google so it's not like investors are deterred by effective regulation when it happens all over the world.

Amazon will eventually open here then Takealot is the small guy.

 

[neoprema]

He's not giving the full picture. For years Takealot was subsidised by the big behemoth Naspers to give the public discounts and incentives. Now that they have become dominant by forcing other smaller guys out of business which I personally supported the incentives have stopped, the service is bad and the prices are sky high. Now people want the smaller guys back in business but it's too late. Sometimes consumers are their own worst enemies why I like to support the smaller guys or "underdogs".

A free market isn't always a good thing sometimes resulting in less competition and choice. We are also not the only ones to see this. The U.S. is looking into the actions of Amazon while the E.U. is looking into companies like Microsoft and Google so it's not like investors are deterred by effective regulation when it happens all over the world.

If a big corporate wipes out some smaller mom-and-pop stores. its unfortunate. But its also progress. I would rather order from Amazon with their technology, relatively no-questions-asked-returns, large stock options and embracing self-driving and AI delivery vehicles than support some little online store with slow service, low stock levers and an irritating website. Besides, Amazon and others allow smaller stores to sell through them and benefit from what they do so well anyway.

 

[B-1]

If a big corporate wipes out some smaller mom-and-pop stores. its unfortunate. But its also progress. I would rather order from Amazon with their technology, relatively no-questions-asked-returns, large stock options and embracing self-driving and AI delivery vehicles than support some little online store with slow service, low stock levers and an irritating website. Besides, Amazon and others allow smaller stores to sell through them and benefit from what they do so well anyway.

I do think there is room for the speciality shops. While the generic mom and pop shops can't compete those who specialise and offer real expertise can still outcompete the big guys.

 

[AchmatK]

If a big corporate wipes out some smaller mom-and-pop stores. its unfortunate. But its also progress. I would rather order from Amazon with their technology, relatively no-questions-asked-returns, large stock options and embracing self-driving and AI delivery vehicles than support some little online store with slow service, low stock levers and an irritating website. Besides, Amazon and others allow smaller stores to sell through them and benefit from what they do so well anyway.

Have you looked at what it costs to sell on takealot. I was on there for all of one month and to sell a single jar of of honey on their platform world have cost me up to 35%. So a R100 jar of Honey I only end up with R65 after paying their fees and I still need to pay the courier to get the stock to their warehouse. Most of what I sell I cannot sell on takealot without first creating a bundle of products and selling them as a bundle at over R350 and in most instances it's just makes a small profit. Maybe if they allow the seller to fulfil orders it might be better but they insist that anything ordered on their platform must be fulfilled by them.

Thanks to efficient delivery options from The Courier Guy, there are number of small online stores able to offer much better service than takealot. I sometimes get orders before 9am and it's delivered same day if its in the greater Cape Town area without it costing the customer extra.

Takealot is the last place I look to use for any online purchases. If the seller has their own online store with card payment facilities I would rather order there and the price is normally cheaper than the price on takealot as they don't have to jack up the price to recover the takealot fees.

 

[neoprema]

Have you looked at what it costs to sell on takealot. I was on there for all of one month and to sell a single jar of of honey on their platform world have cost me up to 35%. So a R100 jar of Honey I only end up with R65 after paying their fees and I still need to pay the courier to get the stock to their warehouse. Most of what I sell I cannot sell on takealot without first creating a bundle of products and selling them as a bundle at over R350 and in most instances it's just makes a small profit. Maybe if they allow the seller to fulfil orders it might be better but they insist that anything ordered on their platform must be fulfilled by them.

Thanks to efficient delivery options from The Courier Guy, there are number of small online stores able to offer much better service than takealot. I sometimes get orders before 9am and it's delivered same day if its in the greater Cape Town area without it costing the customer extra.

Takealot is the last place I look to use for any online purchases. If the seller has their own online store with card payment facilities I would rather order there and the price is normally cheaper than the price on takealot as they don't have to jack up the price to recover the takealot fees.

But does this speak to other platforms internationally too? Or is it a Takealot problem?

 

[quovadis]

If a big corporate wipes out some smaller mom-and-pop stores. its unfortunate. But its also progress. I would rather order from Amazon with their technology, relatively no-questions-asked-returns, large stock options and embracing self-driving and AI delivery vehicles than support some little online store with slow service, low stock levers and an irritating website. Besides, Amazon and others allow smaller stores to sell through them and benefit from what they do so well anyway.

Even Amazon was profitable in under a decade and they weren’t winning market share on price and incentives alone. As much as competition is good there is a fine line especially when you open your platform and compete with the very same sellers. Amazon will likely destroy Takealot on all fronts though so at least Takealot will have some competition.

 

[AchmatK]

But does this speak to other platforms internationally too? Or is it a Takealot problem?

Amazon allows sellers to fulfil orders directly.

The seller fees are also less than takealot. I have registered as a seller on amazon but it's limited as I'm not based in the US or a market where they officially sell in. Hopefully when they do launch seller accounts for local sellers my seller account will be fully activated.

 

[konfab]

No, I have a problem with a company being characterized as a success while being unprofitable year after year.

Edit: Just to add - it’s hardly a bunch of ordinary people. Takealot is wholly owned by Naspers.

Takealot is making a loss. Therefore it is a direct transfer of wealth from Naspers to either Takealot’s suppliers or to their employees.

 

[Swa]

If a big corporate wipes out some smaller mom-and-pop stores. its unfortunate. But its also progress. I would rather order from Amazon with their technology, relatively no-questions-asked-returns, large stock options and embracing self-driving and AI delivery vehicles than support some little online store with slow service, low stock levers and an irritating website. Besides, Amazon and others allow smaller stores to sell through them and benefit from what they do so well anyway.

Maybe I wasn't clear. Takealot did not become a big corporate success by competing, they competed through the funds of another big corporate. That is completely different and while you may think it's progress it's worse now for everyone. Takealot isn't competing with a number of smaller guys but only squashed a number of smaller guys. They're also not a success so nobody is benefitting.

Yeah Amazon is better though I don't know how their returns are for Saffers but you're measuring them against a short stick. In the U.S. they're not held in such high regard either by their buyers, sellers or staff.