Why Amazon in South Africa made the news, the end of Small Street?

South African-based sellers will get the chance to reach a wide range of customers across the country, but many other changes are near, and with change comes resistance and a possible and unintended war.

The challenges

We look at some of the possible scuffles in the market that will be an indirect result of a global giant stepping into a new territory.

With Amazon launching in the country in 2024, small, medium, and other retail outlets may see massive growth in sales due to Amazon’s step to sail south.

The brand in numerous reports said: “We look forward to launching Amazon.co.za in South Africa, providing local sellers, brand owners, and entrepreneurs—small and large—the opportunity to grow their business with Amazon, and delivering great value and a convenient shopping experience for customers across South Africa,” said Robert Koen, general manager of the Sub-Saharan Africa region for Amazon.

There will be a vast selection of products in the market and competitive prices, and while there will be competition, the entry by Amazon into South Africa may cause an internal scuffle for market share.

The deeper challenges

Let’s imagine the Johannesburg craft market which stands to gain in terms of reach to grow it’s footprint.  Access to Amazon’s tools seems appetizing and possibly comes with some rewards, but let’s look at the indirect impact of Amazon in the country.

Amazon’s impact

Amazon’s overall impact in South Africa will be complex and multifaceted. Yes South Africa stands to gain on one side with possible job creation, a wider range of products circulating  to customers, not to mention convenient shopping, but Amazon’s dominance inn the e-commerce sector can lead to a lack of competition.

It can also lead to higher prices for consumers in the long run.

Innovation may also be under threat in the e-commerce space and this will most likely make small competitors loose drive.

The counterfeit shadow

Amazon has been linked to intellectual property disputes. Currently, it faces criticism for its apparent role in facilitating the sale of counterfeit products to other markets.

There is also a cultural negative whisper as e-commerce platforms like Amazon often contribute to a shift in consumer preferences which often ultimately leads to the shit in cultural heritage and the way people shop.

There will be an impact on the economy

There are informal business sectors in the Johannesburg area and other city hubs that may feel the impact  Business hubs such as “small street” in Johannesburg may feel the pinch due to their being a more direct line of securing products, should Amazon solidify its position in the market.

The may be logistical challenges that Amazon may face such as inadequate road infrastructure and load shedding. Still, it should be exciting to see the overall strides forward that the e-commerce giant will take in an effort to solidify itself in the country.

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