On May 7th, Amazon expanded its global footprint by launching in South Africa, marking its first entry into sub-Saharan Africa. This move increases Amazon’s active markets to 22 worldwide. The launch was significantly delayed, coming over a year later than initially planned, due to shifting priorities within Amazon. Notably, 2023 marked a year without expansion as plans for new marketplaces in Colombia, Chile, and Nigeria were put on hold. Before this, Belgium was the latest addition in October 2022. South Africa, alongside Nigeria, represents one of the largest e-commerce markets in the region.
Amazon is essentially starting from scratch in South Africa, although it had previously garnered a significant online presence with the U.S. version of Amazon.com. Unlike its entry into Egypt, where it replaced the localized Souq.com store after acquiring it in 2017, South Africa presents a fresh slate with no foundational marketplace or Prime membership initially available. However, Amazon has been actively preparing by recruiting local sellers for over six months, boasting over a thousand at launch, yet no international sellers have joined yet. This strategy resembles Amazon’s approach when it entered Australia in 2017, slowly building its presence in a market with established competitors, such as Takealot in South Africa. Amazon’s long-term strategy suggests a cautious but persistent expansion, betting on gradual growth to eventually dominate new markets.
