Date: April 13, 2023
South Africa’s largest online retailer, Takealot, welcomes the news of Amazon’s plans to launch its e-commerce business in the country, indicating a rapidly growing market ready for expansion. Takealot, with around 2000 employees , is currently the biggest online store in South Africa, offering a wide range of consumer products across numerous categories and exceptional delivery services .
The online retail sector in South Africa, while small compared to developed international markets, has experienced rapid growth in scope and value in recent years . According to a study conducted by World Wide Worx and Mastercard, in 2022, total retail sales in South Africa reached R1.16 trillion, with online retail accounting for 4.7% of that total . This figure highlights the significant value that can be unlocked in South Africa’s online retail market.
Takealot’s dominance in the South African online retail space is further evident in their recent construction of a new distribution center in Cape Town, expected to launch in August 2022 . The company’s willingness to invest in infrastructure demonstrates their confidence in the market’s potential for growth.
The arrival of Amazon, a global e-commerce giant, in South Africa is a testament to the country’s burgeoning online retail industry . Takealot’s CEO has expressed a positive outlook on Amazon’s entry into the market, believing it will only strengthen South Africa’s e-commerce sector and create more opportunities for businesses and consumers alike .
As South Africa’s online retail market continues to grow, both local and international brands will likely seize the opportunity to expand their presence in the country. With Takealot leading the way and Amazon’s imminent entry, the future of e-commerce in South Africa looks promising.