What to Expect from Amazon South Africa: Insights and Opportunities

When Amazon launched its South African eCommerce marketplace in May 2024, many local shoppers were left underwhelmed. Limited product categories, missing features like Prime, and a lack of international product offerings have been common points of disappointment.

However, for those familiar with Amazon’s global expansion strategy, this slow and steady rollout comes as no surprise. At fluid/sa, we’ve participated in Amazon launches worldwide, and we know that these early stages present a rare and invaluable opportunity: the First Mover Advantage.

Amazon’s Track Record in Emerging Markets

Amazon’s global success spans both major and modest economies. From powerhouse markets like Germany, India, and Japan to developing nations like Poland and Belgium, Amazon has proven its ability to dominate local eCommerce landscapes over time.

Case Study: Amazon’s Growth in Poland

Poland offers a comparable example for South Africa. Since its launch, Amazon.pl has demonstrated steady growth and positive impacts on the local economy:

• Revenue Growth: In 2021, revenue rose by 20.2% to 4.41 billion zloty.
• Profit Increase: Net profit soared by 288% to 111.2 million zloty.
• Job Creation: Over 70,000 direct and indirect jobs have been created.
• Economic Impact: Investments totaling €7 billion (PLN 30 billion) have added PLN 24 billion to Poland’s GDP.
• Technology Advancements: A tech center in Gdańsk contributes to innovations like Alexa, Kindle, and smart home systems.
• Sustainability Initiatives: Amazon supports wind energy projects generating over 77,000 GWh annually.

Amazon.pl is not without competitors, with Allegro and OLX dominating the market. Yet, Amazon has carved a significant space with over 400 million products and continues to expand its logistics network, including seven fulfillment centers in Poland.

Learn more about the South African eComm environment here

Case Study: Amazon’s Growth in Belgium

Launched in October 2022, Amazon.com.be has also experienced significant growth:

• SME Success: In 2023, Belgian SMEs sold over 10 million products, a 75% year-on-year increase.
• Export Expansion: International sales exceeded €350 million in 2023, up 70% from 2022.
• SME Support: Initiatives include free digital training, events with VOKA Chambers of Commerce, and the launch of E-Academy for entrepreneurs.
• Job Creation: Investments contribute to job creation and regional development.

These case studies showcase Amazon’s ability to adapt and thrive, even in competitive or developing markets.

What This Means for Amazon South Africa

Amazon’s South African marketplace is following a familiar trajectory. While the initial launch may seem underwhelming, the long-term potential is immense:

• Untapped Market: The South African eCommerce market is growing rapidly, with penetration tripling in the past five years.
• Limited Competition: Amazon.co.za is currently less competitive, offering sellers the chance to gain top rankings without heavy ad spend.
• Future Growth: Based on global trends, Amazon.co.za will likely grow into a dominant eCommerce platform within a few years.

Also Read: Read: Why Amazon South Africa Will Succeed

Why Act Now?

The unique First Mover Advantage on Amazon allows sellers to establish themselves early, gain rankings organically, and build a strong sales history. As Amazon.co.za grows, early movers will reap the rewards of increased visibility, retained rankings, and higher sales.

Additionally, reviews and sales history gained on Amazon South Africa can be transferred to other marketplaces, providing sellers with algorithmic credibility when entering more competitive platforms like Amazon.com.

Check out our YouTube video for reference

Take the Next Step with fluid/sa

At fluid/sa, South Africa’s first full-service Amazon agency, we specialize in helping sellers leverage the opportunities Amazon offers. Whether you’re exploring Amazon South Africa or looking to expand globally, our team can guide you every step of the way.

Get a Free Consultation Today: Connect with us to learn more about the Amazon opportunity in South Africa and beyond.