Renowned economist Dawie Roodt predicts that the competition between Takealot and Amazon in South Africa will ultimately benefit consumers.
Following the long-anticipated launch of Amazon’s marketplace in South Africa, Roodt emphasized that local consumers will emerge as the big winners in this battle for dominance.
Amazon’s marketplace in South Africa can be accessed through www.amazon.co.za or by downloading the Amazon Shopping mobile app. The platform offers a wide array of local and international brands across 20 product categories.
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It pledges competitive pricing and efficient delivery services through its courier partners, DPD Laser and The Courier Guy. Additionally, customers can enjoy free delivery on their first order for products fulfilled by Amazon, followed by subsequent free deliveries for orders above R500.
Contrary to expectations, economist Dawie Roodt believes that Amazon will face a tough battle against established local online retailers such as Takealot.
Takealot’s strong market presence, in-depth understanding of the local market, robust logistics, and expanding user base position it as a formidable competitor.
Roodt predicts a fierce competition for dominance between Takealot and Amazon, which will ultimately lead to lower prices and enhanced services for consumers.
Andy Higgins, the Managing Director of Bob Group, echoes Roodt’s sentiments by emphasizing the difficulty Amazon will encounter in South Africa’s e-commerce landscape.
Unlike other American tech giants, Amazon’s operations in South Africa will be significantly challenged due to the intricate logistics involved.
While Amazon relies on third-party logistics providers, local e-commerce players like Takealot have a competitive edge by owning and controlling their logistics. Higgins emphasizes that Amazon’s success in South Africa is far from guaranteed.
Furthermore, Arthur Goldstuck, the Managing Director of World Wide Worx, highlights the positive impact of Amazon’s entry on the e-commerce industry in South Africa.
He anticipates increased investment in courier logistics, which will elevate the overall standard of courier services in the country to be on par with global benchmarks.
Takealot swiftly responded to Amazon’s entry by introducing lower prices and enhanced services. In response to Amazon’s launch, Takealot unveiled a monthly subscription service called TakealotMore.
This service offers free deliveries and order collections on Takealot.com and Mr D, with two subscription tiers: TakealotMore Standard at R39 per month and TakealotMore Premium at R99 per month.
The Standard plan provides two free same-day deliveries per month for orders over R500 along with unlimited free next-day deliveries and collections. On the other hand, the Premium plan offers unlimited same-day, next-day, and standard deliveries and collections for Takealot orders.
Frederik Zietsman, the CEO of Takealot Group, expressed confidence that TakealotMore would redefine convenience and value for millions of South African consumers.
He emphasized that the subscription service has been designed with a budget-friendly tiered approach to ensure an enhanced shopping experience for every customer. Zietsman also hinted at the continuous evolution of TakealotMore, with additional perks set to be introduced in the near future.
Takealot also slashed the prices of numerous products by up to 50% in response to Amazon’s local launch, cleverly branding it as ‘Amazin Deals’. This strategic move indicates Takealot’s determination to compete directly with Amazon in the South African market.
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