Takealot denies Chinese counterfeit product surge
Takealot has denied that its e-commerce marketplace has become a hotbed for counterfeit goods from Chinese merchants exploiting tax loopholes and “hijacking” the listings of South African sellers.
Over the last few months, MyBroadband has received numerous reports from local Takealot merchants alleging that their sales on the platform are suffering due to an influx of Chinese sellers.
In many cases, merchants claimed that a foreign seller had cloned their product, with a similar design and function, and was selling it at a lower price.
One major contributing factor to this issue was the changes Takealot was forced to make to its Buy Box, which highlights offers of one or two sellers for the same product.
In its inquiry into online marketplaces, the Competition Commission found 90% of shoppers purchased the listing that “won” the Buy Box.
Although Takealot initially programmed the box to favour products with the shortest delivery times, the Competition Commission ordered the company to change this to also show the offer with the best price.
The Commission argued that favouring short delivery times advantaged Takealot’s own listings over those of its sellers, as products it sold were more likely to be in its warehouse.
However, the forced change has tipped the scales in favour of Chinese sellers, who can win the Buy Box by simply undercutting the best price by R1, while having weeks-long delivery lead-times.
A South African Takealot seller previously told MyBroadband that many of the foreign sellers appeared to be using underhanded tactics to stay below thresholds for registering for value-added tax (VAT).
By recruiting local intermediaries and rotating bank accounts, they allegedly avoid taxes that apply to local sellers, enabling them to undercut South African product prices.
Sellers have also stated that they are only allowed a maximum lead time of 5 days for deliveries, while foreign sellers are permitted up to 3 weeks.
The merchant directed us to a Facebook group for sellers on Takealot and other South African e-commerce marketplaces.
We found dozens of complaints about the issue in the last three months, including one seller who posted a video in which a Chinese shipping agent expressed surprise about how well his items have performed.
Another seller commenting on the post said Takealot should change its name to AliExpress, China’s largest e-commerce marketplace.
“That’s the problem with South Africa, always letting foreign money fill their pockets up instead of looking after our own first,” they said.
MyBroadband has also observed several products shown in the Buy Box with long lead times despite Takealot being the seller.
Takealot says “no increase” in counterfeit product reports
Local sellers have also complained about reputational damage, as Chinese sellers sometimes manufacture products of inferior quality.
Sellers also pointed out the irony of Takealot speaking out against the negative impact that Shein and Temu had on local retail while also supporting Chinese sellers.
Another source of frustration was an increase in Takealot’s fulfilment commission, which is being increased to 7% from April 2026.
In response to MyBroadband’s questions about local sellers’ allegations, Takealot said it had observed no increase in customer or seller complaints related to counterfeit goods.
“We respectfully dispute the characterisation of a ‘proliferation of counterfeit products’ on our platform,” Takealot said.
The company said it had a strict zero-tolerance policy against counterfeit goods, with immediate account termination for any sellers found violating this policy.
“Our robust anti-counterfeit measures include proactive monitoring, rapid response protocols, and comprehensive seller verification,” the company said.
Takealot said its brand programme is protecting 1,500 brands with registered Companies and Intellectual Property Commission trademarks.
It also highlighted that many of its established local sellers were themselves importing international products to remain competitive.
“The expansion of international sourcing reflects the natural maturation of South Africa’s e-commerce landscape,” Takealot said.
Takealot said its approach followed global best practices, in which leading platforms operating hybrid marketplaces combine local and international suppliers.
Takealot said all sellers are treated equally regardless of origin. The company said that lead time variations reflected legitimate international logistics realities, not preferential treatment.
Takealot also said its recent increase to a 7% fulfilment fee was the first adjustment since March 2023 and reflected substantial three-year investments in logistics infrastructure.
These have enabled faster delivery capabilities, expanded distribution centres, and improved returns processing.
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