Amazon finally arrives to take on SA players in local e-commerce jungle

It also signals the start of what will be a fascinating e-commerce battle, as established local online shopping players, led by Naspers-owned Takealot, defend their hard-won turf. Big retail groups have also built their own online shopping capability to complement their traditional bricks-and-mortar stores, and will be working to defend that as well. 

Chinese-based online retailers Shein and Temu are already in South Africa, but their presence has largely flown below the radar as public attention has focused on the imminent arrival of high-flying Amazon. 

“With a strategy that combines local offerings, swift delivery, a plethora of pickup points and convenience, the incursion into the market has the potential to redraw the retail map with implications for everyone from Massmart and Shoprite to Pick n Pay and Woolworths,” comments the Johannesburg-based newspaper, Business Day. 

Massmart is a diversified retail and wholesale group with store brands such as Game, Makro and Builder’s Warehouse. Shoprite, Pick n Pay and Woolworths are predominantly grocery retailers. 

“We are excited to launch Amazon.co.za, along with thousands of independent sellers in South Africa,” says Robert Koen, Managing Director of Amazon in sub-Saharan Africa. “We provide customers with great value, broad selection – including international and local products – and a convenient delivery experience. 

“From today, customers can count on Amazon.co.za for a stress-free shopping experience, fast and reliable delivery, access to 3,000 pickup points, 24/7 customer support, and easy returns.” 

Launch deal for local online shoppers 

The company’s initial offering to local online shoppers is free delivery on the first purchase, followed by free delivery for subsequent orders above R500 (around US$27). 

While Amazon will be selling top global brands such as Apple, Sony, HP and Lego, its lineup also includes independent South African sellers like Amanda-Jayne, King Kong Leather, Masodi and Tiger Lily. 

According to Amazon, more than 60% of the items sold in its stores globally are from independent sellers, most of which are small- and medium-sized businesses. 

“As part of its commitment to connect customers with businesses throughout the country, Amazon.co.za offers independent sellers an opportunity to rapidly launch, grow and scale, while leveraging the innovative capabilities, valuable tools, and educational content provided by Amazon,” the company says in its statement. 

“Building a strong relationship with South African brands and businesses, small or large, is incredibly important to us. We want Amazon.co.za to be the place where they can reach millions of customers,” adds Koen. 

Initially there was media speculation that Amazon would launch in SA in February 2023, followed by Nigeria in April 2023. The South African unveiling was then delayed, while any Nigerian launch was placed on hold – presumably due to the country’s economic difficulties. 

The study, published online in the International Journal of Research in Marketing, could provide manufacturers and marketers with a cost-effective way of promoting the ever-expanding range of scented products. 

Despite rising recognition of the power of scent, the researchers say that much product branding does not include an image evoking an appealing smell. Sometimes, companies even choose images that actually reduce consumer appeal. 

Examples of the latter include objects whose unpleasant odours the product is designed to disguise, such as old running shoes or ash trays. The new study confirms the negative impact of such images. 

As part of the study, participants were asked to choose between two fruit-scented hand wash products with and without pictures of the relevant fruit on packaging or advertising. As expected, the presence of an image was more important in determining consumer choice than whether the hand wash was scented with clementines or pears. 

A rose by any other name… 

Similarly, when considering products described as having a floral scent, images of yellow roses scored better with participants than sunflowers, almost certainly because the latter does not have a strong smell. 

“Marketers and their clients have sought for some time to infuse packaging, and even print advertisements, with appropriate pleasant fragrances. There is strong evidence that appealing scents can boost sales in shops,” says research paper co-author Zachary Estes, Professor of Marketing at the City University of London. 

“However, for individual products that process is costly and not always particularly practical. It also has limited impact; research suggests that just 11% of customers sniff fragranced magazine ads, for example. 

“Our study suggests there is a less expensive route to the olfactory senses – one where people’s imaginations almost do the marketer’s work.  

“It is no surprise that attractive images of flowers or fruit with pleasant smells will attract customers if they are relevant to the product. However, that impact can be magnified by using specific images (such as cut lemons rather than whole lemons) that intensify stimulation of the olfactory senses as well.” 

The research paper is co-authored by Varun Sharma, Assistant Teaching Professor at Carnegie Mellon University in Qatar. 

You can find out more about the study here.