Takealot disaster

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Daily Investor

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Takealot disaster

Over the year, the Takealot group incurred a loss of US$22 million (R407 million), significantly higher than the US$7 million (R129 million) a year earlier.
 
Excellent & fast delivery reputation used to be the differentiating factor why we shopped at Takelot alot, now they're just another sometimes convenient often expensive online store that delivers sometime after next Tuesday.
 
I always wondered how they are able to sometimes price their products below the market value. It would be interesting to see their gross profit since we will be able to see how much their cost of sales will be. Do they just operate on razor thin margins or do they actually receive it a costs below their competitors.
 
Avbob se stoep said:
I always wondered how they are able to sometimes price their products below the market value.
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They often tell suppliers the price they'll pay AND get rebates from the vendors (manufacturers) or distributors of many products. Their gross margin must be sickeningly large.
 
Avbob se stoep said:
I always wondered how they are able to sometimes price their products below the market value. It would be interesting to see their gross profit since we will be able to see how much their cost of sales will be. Do they just operate on razor thin margins or do they actually receive it a costs below their competitors.
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Marketing support from the retailer/manufacturer to support the margin with selling it on their platform.
 
If I can add my 2c.

I mainly prefer using brick and mortar stores now even if I have to drive a rather long distance to get something as the delivery times on Takealot these days are just idiotic. Things used to be next day no matter what you ordered. Now it's next day if in stock and if in X location. I think they rely heavy on suppliers needing to fill orders, not keeping stock no more and it's affecting their delivery times.

I just can't be arsed any more. That being said, bought a phone case and screen protector yesterday as my local didn't have it. Only reason I opted to get it from Takealot is I would have it today at the drop point in Pretoria. Else I would have found it somewhere else. But at a "Priority" fee ofc...
 
Pitbull said:
If I can add my 2c.

I mainly prefer using brick and mortar stores now even if I have to drive a rather long distance to get something as the delivery times on Takealot these days are just idiotic. Thing used to be next day no matter what you ordered. Now it's next day if in stock and if in X location. I think they rely heavy on suppliers needing to fill orders, not keeping stock no more and it's affecting their delivery times.

I just can't be arsed any more. That being said, bought a phone case and screen protector yesterday as my local didn't have it. Only reason I opted to get it from Takealot is I would have it today and the drop point in Pretoria. Else I would have found it somewhere else. But at a "Priority" fee ofc...
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Nevermind the aditional R200 surcharge randomly applied.
 
Look I asked why do they quote $ amounts? Am I missing something?
Last time I looked I earned Rands. And I purchased **** from TA in Rands. Why tune us how many $ million TA lost?
 
W@P said:
Look I asked why do they quote $ amounts? Am I missing something?
Last time I looked I earned Rands. And I purchased **** from TA in Rands. Why tune us how many $ million TA lost?
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tiny weeny brigade has taken over .
 
I used takealot for a small item earlier this year. Got something completely different to what was advertised. Asked for a refund. They refunded, but I never got a refund on the delivery fee. Decided to avoid them as best I could from then on.

There are so many third party suppliers' products on there nowadays that you just can't be sure are going to be what you've actually ordered when they arrive at the door.
 
porchrat said:
I used takealot for a small item earlier this year. Got something completely different to what was advertised. Asked for a refund. They refunded, but I never got a refund on the delivery fee. Decided to avoid them as best I could from then on.

There are so many third party suppliers' products on there nowadays that you just can't be sure are going to be what you've actually ordered when they arrive at the door.
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This is another dirty trick. I asked for the collection fee (I don't have things delivered) back, and they paid it back. Why did I have to ask.
 
W@P said:
Look I asked why do they quote $ amounts? Am I missing something?
Last time I looked I earned Rands. And I purchased **** from TA in Rands. Why tune us how many $ million TA lost?
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Good question but to be fair the amounts are provided in USD and ZAR
 
I know that they have been investing heavily in their distribution capability with 2 new warehouses going up in Cape Town (not sure about elsewhere), and those are not cheap. The article doesnt say where the losses come from especially if those are increasing at a much higher rate than the GMV is increasing. So I'm not sure this is telling us the whole story. Still though, takealot are not as competitive today as they used to be and the long-tail stock situation is pretty bad - its pointless trying to buy a lot of tech from them as they dont hold it and delivery lead-times are 5-7 days. Often you can get better pricing and much faster delivery elsewhere.
 
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