What online retailers can expect once Amazon launches in South Africa
Category Commercial and Industrial News
2024 has gotten off to a challenging start for many online retailers, with Temu's aggressive marketing campaign dominating many online advertising platforms globally. With Amazon set to launch in South Africa later this year, there is a further shake up on the cards for the South African market. 3Cube Property Solutions has applied a magnifying glass to the upcoming Amazon launch and everything that local retailers can expect.
What makes Amazon stand out from the crowd?
According to Statista as quoted by TechCentral, Amazon Prime has 167 million subscribers in the US - which equates to roughly half the population. For US$14.99 per month (the South African price has not yet been confirmed), subscribers get free two-day shipping on qualifying items. With no minimum purchase price, this will be music to the ears of South Africans who currently order regularly from the likes of Takealot. Amazon's appeal comes from the sheer variety of products on offer and from their slick logistics and processes. As an added drawcard, Amazon Prime subscribers get free access to Amazon Prime Video and other assorted benefits.
The potential advantages on offer for small businesses and entrepreneurs
ITWeb reports that local e-commerce players had their say at the Insaka e-commerce virtual summit roundtable. Attendees highlighted the fact that Amazon provides local sellers and entrepreneurs with opportunities to expand their businesses. Particular mention was made of job opportunities that will be created in township communities. It is hoped that Amazon will provide significant opportunities for delivery people, as well as a new way for township entrepreneurs to take their products to market.
The effects may not be felt immediately
In an article penned for BizCommunity by senior equity analyst Damon Buss, the example of Amazon's entry into Australia is referenced. While the brand only offered Australian consumers 7.5 million products at unremarkable prices when the brand first launched on Aussie shores, they embarked on an expansion drive after about three years. The product range was exponentially included and free one-day delivery was offered to Australian Amazon Prime members. The takeaway here is that local retailers should not be lulled into a false sense of security if they don't feel the impact upon Amazon's initial launch.
So what can smaller players do?
How do you, as a small business, compete with a global conglomerate? One of the best ways to do this is by creating brand loyalty - and one of the best ways to achieve this is through personalised customer experiences. Providing personalised and responsive customer service, tailored product recommendations and customised promotions to your opted-in email database are great examples of how you can make your service personal.
Just as is the case with Takealot and Temu, consumers will be able to buy just about anything on Amazon. Ways to make your product offering stand out include quality, craftsmanship and authenticity. By selling items that are not mass-produced, you can stand out from the crowd. Similarly, focusing on niche markets or specialised products that appeal to a specific customer segment is an ideal way to become known as an expert or preferred provider of a specific set of products.
As the old adage goes, "If you can't beat them, join them". There are many reasons to sell your products through Amazon, including the fact that the brand is globally recognised and trusted. There is a straightforward process to follow to start selling your products through Amazon South Africa and they have provided a helpful guide to get you started.
3Cube Property Solutions has its finger on the pulse of developments in the South African business landscape. They are also experts in finding businesses like yours the ideal premises in Gauteng and the Western Cape. Contact us for more information.
Author: 3Cube Property Solutions
