US e-commerce giant Amazon has inaugurated a walk-in centre in South Africa, aimed at helping its independent sellers attract more customers and expand their businesses. This move is also part of Amazon’s strategy to gain market share in the region.
Amazon, which is striving to catch up with market leader Takealot, owned by Naspers, sees the new centre as a way to increase its product range and, consequently, its potential revenue. “The biggest thing is product breadth for our customers. We just want to have loads of products that people can buy,” said Robert Koen, Managing Director of Amazon sub-Saharan Africa, in an interview.
Globally, more than 60% of sales in Amazon’s stores come from independent sellers, most of which are small and medium-sized businesses. The new centre, located at Amazon’s head office in Cape Town, offers local sellers a variety of services. These include on-the-spot registration to sell on Amazon.co.za, training, product imaging and cataloguing assistance, as well as shipping and logistics support.
Amazon launched its operations in South Africa in May of last year, marking its first venture into a sub-Saharan African country. Reflecting on the company’s performance during the holiday season, Koen remarked, “I think Q4 (the fourth quarter) was actually very encouraging. We exceeded all the goals that we set for ourselves.”
He also noted that first-time shoppers were returning to Amazon’s online store and had provided positive feedback regarding the speed of delivery. This indicates a growing customer base and satisfaction with Amazon’s services in the region.
