Amazon’s Arrival Shakes Up South Africa’s E-Commerce and Courier Industry

When Amazon officially launched its South African online marketplace in May 2024, it didn’t just turn heads — it turned up the heat. The arrival of Amazon.co.za has brought long-awaited disruption to local e-commerce players and courier companies, raising the bar for what South African online shoppers can expect.

According to Garry Marshall, chairman of the South African Express Parcel Association (Saepa), Amazon’s presence is already benefiting consumers — even if its product range and pricing haven’t blown Takealot out of the water yet.

“From my own observations, the service is absolutely excellent,” said Marshall. “I order on a Saturday night, and on Monday morning around 08:00, the delivery is waiting at my gate.”

A Quiet but Calculated Launch

Though the fanfare around Amazon’s launch saw Google searches for “Amazon” briefly surpass Takealot, some local shoppers were underwhelmed by its initial offering. The lack of an Amazon Prime subscription — which bundles entertainment, free delivery, and lifestyle perks — was especially noticeable for fans familiar with the brand abroad.

But two seasoned e-commerce experts recently told MyBroadband that Amazon’s slow start shouldn’t be mistaken for failure. It’s a strategic move, they say — one that allows Amazon to build infrastructure, partnerships, and trust with local users before scaling up.

Delivering on the Basics

Where Amazon is truly excelling is in last-mile logistics — the crucial final stretch of a delivery journey. By teaming up with reliable local courier firms like DPD Laser and The Courier Guy, Amazon has hit the ground running in urban areas, often exceeding delivery promises.

“Amazon is very explicit in what they do. There are no second chances there,” said Marshall, who noted the high expectations Amazon places on its logistics partners.

And those standards are already inspiring local competition to step it up.

Takealot’s Response: Innovation and Adaptation

Marshall believes Amazon’s entry has lit a fire under Takealot and other local platforms. Case in point: the launch of TakealotMore, Takealot’s answer to Prime, just days after Amazon’s debut.

In addition, Takealot has boosted its TakealotNow service to improve on-demand deliveries — all signs that local players are evolving to stay competitive.

“All of these developments, to some extent, are Takealot upping their game,” Marshall said. “That is no doubt in anticipation of fierce competition from Amazon.”

Will Amazon Go Fully Local with Its Own Fleet?

Looking ahead, Marshall says it’s likely Amazon will eventually build its own delivery fleet in South Africa — but only if demand reaches a tipping point.

“They may get to a point where the cost of doing it yourself is better than outsourcing,” he explained.

That said, South Africa’s vast geography and limited rural delivery volume make full independence a challenge. For now, the hybrid model — like Takealot’s mix of in-house and third-party couriers — remains the most feasible.

The Bigger Picture: A Boost for the Whole Industry

Amazon may not have redefined e-commerce overnight, but its impact is being felt across the board. Delivery standards are improving. Local platforms are innovating. And shoppers are reaping the benefits.

“Not only do they have a positive impact on couriers, they also uplift the entire standards of the broader supply chain industry,” Marshall concluded.

As Amazon builds its footprint and possibly introduces services like Prime, South African consumers can expect even more improvements — and competition — in the online shopping space.

{Source: My Broad Band}

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