Reports say Amazon is delaying its African marketplace launches

Amazon’s entry is long-awaited by consumers and marketers in these two key African markets, although there has also been concern at the potential impact this may have on homegrown e-commerce players such as Takealot and Jumia.

Originally, Amazon was apparently planning to begin operating in South Africa this month (February 2023) and has already recruited staff and secured warehouse space. The Amazon.co.za domain has also previously appeared in the country drop-down list on the Amazon.com website.

The Nigerian launch was said to be earmarked for late 2023, but is now on pause for the foreseeable future.

Multiple Amazon offerings were planned

The Daily Investor says the e-commerce giant’s Africa plans also included the launch of its ‘Fulfillment by Amazon’ service for third-party sellers, as well as the Amazon Prime membership programme.

Market speculation is that the African decisions have been caused by an increasingly tough operating environment for e-commerce and technology companies worldwide. Amazon, for example, is laying off around 18,000 workers in a process that started late last year.

Amazon CEO, Andy Jassy, is on record as saying that the company is focused on saving costs at the moment.

“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said. “These changes will help us pursue our long-term opportunities with a stronger cost structure.”

Comments the retail industry website, Shop SA: “Retailers … would be advised to position themselves very strongly in the marketplace over the next two or three quarters, depending on when Amazon eventually launches. Improving the offering to customers and improving the customer experience whilst playing the patriotic card, may be enough to convince consumers to remain loyal when the giant comes to town.”