A new era for online shopping as Amazon expands product range in South Africa

Just more than a year after landing on South African shores with a .co.za domain, Amazon has expended its product range to take on entrenched retailers who have had a virtual presence since the COVID-19 lockdown spurred online and app-based shopping.

Amazon.com started as a bookseller in 1995 out of founder Jeff Bezos’s garage and, at launch last May, was set to compete with Takealot, Loot.co.za, and Makro. And now it’s playing in the food and over-the-counter medicinal product space.

In what the company said on Wednesday is a “major milestone in Amazon's growth in South Africa,” it stated that it had added groceries, pet food, vitamins, and supplements to its offerings. Adding these categories, it said, “brings thousands of new non-perishable food items, pet food products, and health supplements to customers across the country”.

Amazon’s new selection includes both international favourites like Nestle, Red Bull, and Starbucks, and beloved local brands like Beacon, Simba, and Koo, catering to the diverse needs of South African households.

The e-tailer, which is globally the fourth most valuable company with a market capitalisation of $2.18 trillion, operates local websites in various countries, including Australia, Canada, India, and Mexico.

The 2024 World Wide Worx report, sponsored by Peach Payments, Mastercard and AskAfrika, shows that South Africa’s online retail surged to R71bn in 2023, with projections that it will surpass R100bn by 2026.

Robert Koen, Amazon MD for sub-Saharan Africa, said, “since our launch, we've been listening closely to customer feedback, and groceries, pet supplies, and health supplements have consistently been among their top requests”.

Early data indicates strong customer interest across all three categories. In groceries, coffee, tea, cereals, pasta, cooking oils, and canned goods are emerging as top sellers. The pet food selection, which includes options for dogs, cats, birds, fish, and small animals, has seen particular demand for premium pet nutrition brands and specialty formulations, said Amazon.

Amazon added that the vitamins and supplements category has attracted health-conscious consumers with its comprehensive range of multivitamins, minerals, sports nutrition, and specialty supplements.

On launch, the e-tailer said it sought to support local independent companies and, to this end, hosted its inaugural Seller Summit, bringing together over 300 local entrepreneurs at its Cape Town headquarters last month. More than 60% of global Amazon sales stemming from independent sellers. This was preceded, last September, by ‘Shop Mzansi’, a curated storefront on Amazon.co.za showcasing unique local products that reflect South Africa’s rich and diverse cultures.

‘Shop Mzansi’ features thousands of products across different categories – including toys, home and kitchen appliances, outdoor and braai, baby, luggage, and beauty. 

“Shop Mzansi showcases more than 160 brands from new, emerging, and established South African businesses, each with their own unique story,” Keon said at the time. He added that it will continue adding to the Shop Mzansi selection as it onboard more sellers and helps them list their products. 

More than 60% of sales in Amazon’s stores globally are from independent sellers – most of which are small- and medium-sized businesses.

IOL