If Amazon were to come to SA unlikely it would dislodge Takealot – Commission

There is huge speculation in South Africa at the moment about Amazon – the world’s biggest online retailer – setting up shop here.

Naspers-owned Takealot currently dominates the local market.

RELATED: Takealot poised to compete with new players in the growing e-commerce market

“There is no doubt that Takealot is the leading and dominant e-commerce retailer… and there are no serious contenders at present” says the Competition Commission in its Online Intermediation Platforms Market Inquiry.

In the chapter on e-commerce, it points out that Amazon does not have warehousing and distribution capacity in the country.

… even if that were to change, it would take a considerable period to build capacity and roll out and is still unlikely to dislodge the current leader. This is evident from many markets where Amazon was a relative new-comer unlike the US.

Competition Commission – Online Intermediation Platforms Market Inquiry

Bruce Whitfield asks how much certainty there is about the anticipated Amazon move in conversation with Simon Brown, founder of investment and trading education platform Just One Lap.

As far as I understand Amazon haven’t said, officially from their head office in the US, that ‘we are coming, this is our D-Day’, but from folks on the inside all indications are that they are certainly ready…

Simon Brown, Founder – Just One Lap

We’re not an insignificant market and they’ve gone to all the big ones… Now they’re coming to the slightly smaller markets and we are definitely one of them.

Simon Brown, Founder – Just One Lap

We’ve got the infrastructure in terms of delivery, in terms of payment and the like… We’re used to online, so while Amazon haven’t yet put their flag in the ground and given us a date, indications are that certainly they’re coming.

Simon Brown, Founder – Just One Lap

What does an Amazon entry mean for the likes of Takealot?

Takealot deliver the goods, the services decently enough… the products are good and the prices are ok, but Amazon just take it to a whole new level… and of course they’re not going to be just putting up a .co.za store and sell us goods… they will sell marketplace so people can sell through them…

Simon Brown, Founder – Just One Lap

It’s going to fundamentally raise the game, and they’ve got massive brand awareness already.

Simon Brown, Founder – Just One Lap

For more detail, listen to the conversation below:

This article first appeared on CapeTalk : If Amazon were to come to SA unlikely it would dislodge Takealot – Commission