Loot has partnered with Volt.Africa and AYO to launch an online marketplace which allows small-to-medium enterprises to sell their goods on the platform.
Loot will create an online store for each qualifying business and aid them with stock monitoring and marketing access to a pre-existing audience.
Volt.Africa will provide marketing support to help these businesses to reach more people and create a presence for the store.
This will be achieved via multiple digital platforms, a range of integrated digital solutions, and its network of publishers.
The three companies said the partnership was concluded today and the first stores are set to go live by the end of the month.
Taking on Takealot
The new Loot marketplace will compete directly against Takealot’s marketplace which was launched in 2015.
The Takealot Marketplace accounts for a large percentage of sales on Takealot, with plans to further grow this part of the business.
Loot said there is great potential in online marketplaces in South Africa as ecommerce is set to show strong growth as more people are coming online.
Amazon and Alibaba currently generate 70% of their revenue from online marketplaces and not from direct business-to-consumer sales.
AYO CEO Howard Plaatjes said it makes commercial sense for them to develop and implement an online marketplace that is aimed at helping SMMEs grow.
Loot CEO Greg Le Roux added that providing these SMMEs with the right platforms, markets and tools can help them to become tomorrow’s super stores.