📈 Initial Surge in Interest
Amazon's South African online marketplace launch on May 7, 2024, initially generated significant interest. Google searches for "Amazon.co.za," "Amazon South Africa," and "Amazon" spiked, peaking on launch day. However, by May 11, 2024, search traffic returned to pre-launch levels. Despite a brief spike on May 15, 2024, searches have remained low. Comparing the average daily searches from May 2 to June 2, 2024, Amazon averaged 23 searches, Amazon.co.za 1, and Amazon South Africa 10, while Takealot averaged 34 searches.
🛒 Product and Pricing Issues
Amazon South Africa's product selection at launch disappointed many users. Key Amazon products, such as TVs, Ring security devices, and Kindle e-readers, were missing. Moreover, MyBroadband's price comparison revealed that many items were similarly priced or cheaper on Takealot. Additionally, Amazon's US site often offered better deals, even after accounting for import taxes and shipping. The absence of Amazon Prime's popular delivery and service bundle further hindered Amazon's appeal.
🏢 Market Challenges
Experts like Bob Group CEO Andy Higgins warned that Amazon would face significant challenges in South Africa. Higgins emphasized that local skills and expertise might outperform Amazon's international resources, making it difficult for Amazon to surpass Takealot. MyBroadband's tests confirmed that while Amazon's service was efficient, Takealot's performance was comparable or better, particularly in terms of delivery speed and reliability.
🚚 Competition Heats Up
Takealot responded swiftly to Amazon's entry, launching its own delivery subscription service, TakealotMore, just two days after Amazon.co.za's debut. This service offers similar same-day and next-day delivery perks as Amazon Prime. South African consumers, already accustomed to reliable services from Takealot, Game, and Makro, might find little reason to switch to Amazon. As Amazon navigates these challenges, its ability to compete effectively in the South African market remains uncertain.
Will Amazon overtake Takealot in South Africa?
