Amazon Storms Into South Africa: Makes Waves With Local And International Brands

E-commerce giant Amazon.com Inc AMZN has launched Amazon.co.za, its online shopping service in South Africa.

Customers in South Africa will be able to shop from a selection of local and international brands across 20 different product categories.

The categories span Consumer Electronics, Sporting Equipment, Toys, Home, and small Kitchen Appliances, including international brands. 

Amazon.co.za offers same-day and next-day delivery, aiming at over 3,000 pickup points. Initial orders receive free delivery, with subsequent ones above 500 rand ($27) also eligible for free shipping. 

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Amazon.co.za will offer hassle-free returns within 30 days through options, including home pickup and self-drop. Customers will also receive status updates via WhatsApp, so they can track their order.

“We are excited to launch Amazon.co.za, along with thousands of independent sellers in South Africa. We provide customers with great value, broad selection—including international and local products—and a convenient delivery experience,” said Robert Koen, managing director of Sub-Saharan Africa, Amazon.

The pandemic accelerated South Africa’s online shopping trend, prompting retailers to bolster e-commerce investments. Amazon’s entry aligns with analysts’ views of South Africa as a strategic entry point into Africa’s market, reported Reuters.

Besides Amazon, other fast-fashion e-commerce giants like Shein and Temu have also entered South Africa.

Amazon stock has gained more than 78% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund XLY and Vanguard Consumer Discretionary ETF VCR.

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Price Action: AMZN shares are trading lower by 0.47% at $187.81 in premarket at the last check Tuesday.

Photo by Sergei Elagin on Shutterstock