Tech prices on Takealot vs Amazon

[Pak Fa Fui]

Yes but Amazon SOUTH AFRICA isn't going to be magically cheaper, and likely you'll find Amazon US will still beat them.

Local licensing, distribution, support channels and warranties all cost money.

Why should they increase their prices, not saying amazon is an ethical company at all, but their prices are already cheaper than in SA, if they keep their current pricing they will still make whatever profits they are making anyway.

 

[BBSA]

Where talking Amazon here ...against Takelot.... competition? Amazon will simply buy Takelot, why spend exstra to create a distribution center ect....it's already been done....thanks Takelot, we will be taking it from here....

I will eat your shorts if that happens.

 

[ToxicBunny]

Why should they increase their prices, not saying amazon is an ethical company at all, but their prices are already cheaper than in SA, if they keep their current pricing they will still make whatever profits they are making anyway.

You are aware that Amazon's prices vary in the different locations they operate in, as each location has its own cost structures.

Amazon won't be able to magically avoid the Customs duties and VAT that is levied in this country and the expensive shipping either.

 

[Okty]

Should also do a comparison against Wantitall, should be good for a laugh.

That Samsung 870 Evo Sata III 1TB SSD I see is R5 460 on their site, with a discount nogal.

 

[quovadis]

Yes but Amazon SOUTH AFRICA isn't going to be magically cheaper, and likely you'll find Amazon US will still beat them.

Local licensing, distribution, support channels and warranties all cost money.

And yet they are cheaper in some markets than the US market. The local licensing etc is just an obstacle that can be corrected by manufacturer rebates or discounts at higher levels. Buying power worldwide is a heck of a bargaining chip.

 

[quovadis]

You are aware that Amazon's prices vary in the different locations they operate in, as each location has its own cost structures.

Amazon won't be able to magically avoid the Customs duties and VAT that is levied in this country and the expensive shipping either.

Everyone has to consider customs duties and VAT - pretty sure the rest is logistics and buying power.

 

[Arthur]

Why should they increase their prices, not saying amazon is an ethical company at all, but their prices are already cheaper than in SA, if they keep their current pricing they will still make whatever profits they are making anyway.

Just to add to the reply by @ToxicBunny:

In most geographies retailers source their product from local distributors, not from some central global warehouse. For various obvious reasons (shipping, volume discounts, duties, local taxes, employment laws and costs, etc) those distributors have different prices.

So, Amazon in SA will typically source the bulk of its items from the already-established SA distis.

Mainly because order and shipping volumes in SA are much smaller than in larger markets such as the US, landed costs before duties and taxes in SA are higher than in the US. That waterfalls down through the channel to the retail customer.

Also, vendors and regional distributors often run regional and market-specific specials with deep discounts in order to rebalance inventory. Those promotional special prices are not available worldwide but are limited to certain geographies.

I spend about six months a year in the US, and Amazon here is absolutely flippen amazing. They never cease to astonish me with speed, price, service and value.

But I wouldn't hold my breath that prices in SA will match those in the US, or that deliveries will be any quicker. For a start, our market is too small and too far away from manufacturers to get comparable pricing for bulk purchases and shipping.

 

[SauRoNZA]

Why should they increase their prices, not saying amazon is an ethical company at all, but their prices are already cheaper than in SA, if they keep their current pricing they will still make whatever profits they are making anyway.

They wouldn’t just increase it, their cost of delivering said products would be higher and therefore would have localised pricing in place to make margins.