Bidorbuy has held the title of South Africa’s largest online marketplace for years, but is facing a challenge from the country’s largest online shopping website, Takealot.
Armed with R960 million in new funding and a drive to dominate online shopping, Takealot is an 800-pound gorilla nobody can ignore.
Several online shopping sites, like Makro, have also launched marketplaces, but it will take time for these platforms to gain momentum.
The battle between Takealot and Bidorbuy can be compared to Amazon and eBay in the United States, which are fighting for market share.
While Amazon is much larger than eBay, the latter still serves millions of users each month.
Many commentators predict that Amazon and eBay will continue to coexist as competitors for the foreseeable future.
The same may happen in South Africa, with Takealot and Bidorbuy – but it will depend on how each company reacts to changes in the market.
Takealot vs Bidorbuy – Finances
When looking at the market position and financial situation of Takealot and Bidorbuy, there are several differences.
While Takealot has deeper pockets than Bidorbuy, it is burning through cash and still has to prove that it can turn a profit.
Takealot’s major shareholders – Naspers and Tiger Global Management – may stop funding the company in future.
When this happens, Takealot will be under financial pressure, which may remove some of the competitive advantage it currently enjoys.
While Bidorbuy’s finances are not public, it is believed it is not losing money and is more financially stable than Takealot.
Bidorbuy has also used much less money to establish itself in the market, which means it faces less pressure from shareholders to deliver massive profits.
Takealot vs Bidorbuy – Delivery
One of the biggest advantages which Takealot’s marketplace offers is the experience it provides buyers.
Takealot holds all sellers’ products in its warehouses, which means shipping is done through a trusted network.
Takealot’s controlled environment is typically preferred by buyers, who often have to deal with Post Office deliveries when dealing with Bidorbuy sellers.
While Takealot’s system guarantees better delivery times, it does create inefficiencies and additional costs for sellers.
Takealot vs Bidorbuy – Fees
One of the biggest benefits to sellers on Bidorbuy is the lower fees charged by the platform.
Takealot vs Bidorbuy – Services and products
While standard “buy now” services are more popular than online auctions, many people still enjoy the latter.
Takealot does not offer auctions, and Bidorbuy is the dominant player in the South African online auction market.
Bidorbuy is also the preferred platform for sellers who deal in collectables – like stamps, coins, antiques, and art.
While Takealot is likely to dominate Bidorbuy on products like computers, electronics, books, movies, and games, it will not be as strong when it comes to niche products.
Takealot vs Bidorbuy – eCommerce experts comment
MyBroadband asked two of South Africa’s prominent eCommerce experts – who asked to remain anonymous – about the battle.
The first commentator said Takealot and Bidorbuy are two different businesses, and both businesses are likely to be successful.
The second commentator said Takealot is going to be the likely victor, especially with its latest round of funding, which will enable it to strengthen its marketplace.
He said many sellers who migrated from Bidorbuy to Takealot have seen a dramatic increase in sales, which does not bode well for Bidorbuy.
He said the erratic experience, especially related to delivery, associated with Bidorbuy will hurt the platform in the long term.
Takealot and Bidorbuy – No comment
Takealot was asked for feedback regarding its market position and plans, but it did not provide a reply.
Bidorbuy said it would prefer not to comment on the matter.