Amazon South Africa launched three months ago, and so far, they have been following their blueprint of global expansion, whereby the eCommerce giant slowly establishes itself in new countries and eventually dominates. fluid/sa is a full-service Amazon agency, the first Amazon Agency in South Africa; helping businesses sell on Amazon. 

Many South Africans have been disappointed by Amazon’s launch because they expected Amazon.co.za to be like Amazon.com, filled with international offerings and exceptional service immediately. However, that is not how it works. If you research Amazon’s expansions into any new marketplace (such as Brazil, France, Netherlands, Poland, and many more), you will see that its blueprint is built on patience and long-term growth. In the years to come, Amazon.co.za will expand towards the wide product offerings available in its flagship marketplaces (mainly the USA, but also the UK, Germany, and Japan), and it will secure its dominance ahead of local eCommerce competition like Takealot.

Why Did Amazon Choose South Africa?

Amazon chose South Africa as its latest country to launch in for several reasons:

1. Rapid eCommerce Growth: 

South Africa’s eCommerce revenue is growing faster than the international average, and the market is expected to double in size within the next five years. This growth is supported by South Africa’s relatively low eCommerce penetration (eCommerce sales in ratio to retail sales), which is also expected to double within the next four years or sooner.

2. Market Knowledge: 

Amazon has been in South Africa for over a decade with its Web Services (AWS), tech centers, and customer service centers. This presence has given them the chance to learn the Rainbow Nation’s ways and understand the South African market and its people. This deeper understanding enables them to curate their eCommerce launch to South Africa and ensure they satisfy its people.

3. South Africa’s Economy: 

As Africa’s most industrialized country, South Africa is a reasonable choice for launch. Besides its booming eCommerce market, SA has been poised for explosive economic growth for many years. Amazon’s opening here has assisted in this economic growth, and we all try to remain optimistic for our Rainbow Nation’s future!

fluid/sa – proudly the first South African Amazon agency – has the goal of educating business owners to ensure that they realize the opportunity offered. Keep reading to learn more.

Skepticism and Optimism

Many South African businesses remain skeptical about whether Amazon will experience success here, perhaps holding onto the belief that Takealot is too strong or that there is no place for the global tech company’s footprint here.

However, those people are stubborn and myopic, clearly gamblers, since they are betting against one of the most successful companies ever. Amazon generates more revenue in one year than the entire GDP of South Africa. Amazon has successfully launched its eCommerce platform in dozens of countries in Europe, the Americas, and Asia. They are experts at expansion and best of all, the expansion into South Africa is actually positive for our economy at large!

Increased competition among eCommerce marketplaces (Takealot, Temu, Makro) means more product offerings and lower prices for South African shoppers. Moreover, Amazon has employed thousands of South Africans across all skill levels: technical experts for software development, construction workers, delivery drivers, warehouse managers and staff, etc.

The well-being of the average South African is improved by Amazon’s opening here. Based on their track record of international expansion, it is foolish to bet against them in South Africa, which is poised for explosive growth.

Amazon’s Blueprint for Success

Their blueprint for eCommerce success is based on a wide product selection, competitive prices, and convenient delivery. This is the schema that they invented in the USA nearly 30 years ago, and the same one that eCommerce companies (including Takealot) have attempted to duplicate since.

From our own experiences of helping South African businesses and sellers of all kinds launch on Amazon, it is clear that most of South Africa is not under this misconception (of predicting Amazon’s failure here). These business owners are astutely taking the early-mover advantage on offer, whereby they can cement themselves on an unsaturated Amazon, secure a strong ranking in its algorithm, and grow globally, reaching millions of new customers.

Amazon’s deep pockets ensure that they do not mind being unprofitable for several years after they launch in a new country. They are expert strategists on a macro scale and are confident that South Africa is a viable market for their long-term growth.

Clever sellers should jump on this opportunity to grow with Amazon South Africa.

fluid/sa is a full-service Amazon agency, that expanded from Europe and the USA to offer its expert services to South African businesses. Consult with us today to start your Amazon journey.

You can learn more about this on our YouTube channel, where we offer free education to Amazon sellers, or contact us directly for an entirely free consultation.

About fluid/sa

fluid/sa, an expert and the first Amazon Agency in South Africa with roots in Europe and the USA is ready to assist South African businesses in navigating this new landscape. As Amazon prepares to launch in South Africa, Fluid/SA is poised to provide the necessary guidance and support for local businesses to succeed on this global platform. Contact Fluid/SA today to start your Amazon journey and take advantage of the opportunities presented by this landmark e-commerce launch.

For more information, one can reach fluid/sa at https://fluidsa.co.za/contact-us/.