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Amazon expands in South Africa, the next hot market is South Africa

09/06/2022
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Amazon expands in South Africa, the next hot market is South Africa

In June, it was reported that Amazon would expand its online business market in South Africa, and made a series of preparations for this. Looking at it now, Amazon does have an interest in entering the South African market. It is reported that Amazon may launch the South African market by February 2023, and is now deploying recruiting horses in South Africa.

Amazon's foray into South Africa will open up opportunities for local entrepreneurs. Seller's Marketplace will be part of Amazon's launch in South Africa. This will enable South African businesses to upload their products to one of the largest global markets. In the post-epidemic era, online shopping is still booming, and the number of online consumers is gradually increasing. Data shows that e-commerce sales in South Africa reached R30.2 billion in 2020, compared to R14.1 billion in 2018. E-commerce sales in 2020 increased by 66%. By 2022, this figure is estimated to exceed R42 billion. From this point of view, online shopping in South Africa is developing very rapidly , and the South African market may become the next blue ocean market.

According to the analysis, the strongest online shopping group among consumers in the South African online market is traditionally the 25-40 age group , with the 18-24 Gen Z group being the fastest growing group of consumers. The data shows that Gen Z incomes will grow the fastest, growing by 140% in the five years after 2021, reaching $17 trillion by 2025.

With the popularity of the Internet and smartphones, most South African consumers have learned to shop online, and research has found that younger buyers are using smartphones and social media to shop. Generation Z has lived in the Internet age since childhood, and is greatly influenced by instant communication and social media. Gen Zers are driving a new wave of South Africa’s e-commerce boom, preferring the convenience of online shopping over brick-and- mortar stores .

The boom in e-commerce in South Africa has seen a fundamental shift in retail. According to the survey, although online sales in South Africa have tripled in the past two years, they still only account for 5% of total sales , indicating that there is still a lot of room for development in the South African online market.

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