Amazon, Checkers and Pick n Pay under threat in South Africa

Amazon.co.za has announced a significant expansion of its product offering with the launch of three new everyday essentials categories — groceries, pet food, and vitamins and supplements.

The new products are available on the Amazon.co.za website and Amazon mobile app, which offer thousands of items available with free standard same-day or next-day delivery.

The online retailer

The online retailer said the selection enhancement has brought thousands of new non-perishable food items to customers nationwide.

“The multi-category introduction marks a major milestone in Amazon’s growth in South Africa, addressing some of the most frequently requested product types,” Amazon said.

The grocery selection includes products from Nestle, Red Bull, and Starbucks and well-known local brands like Beacon, Simba, and Koo.

Amazon managing director for Sub-Saharan Africa Robert Koen said the expansion was part of the retailer’s plan to become a one-stop shopping destination for South Africans.

“Early data indicates strong customer interest across all three categories. “Groceries, coffee, tea, cereals, pasta, cooking oils, and canned goods are emerging as top sellers,” Koen said.

“The pet food selection, which includes options for dogs, cats, birds, fish, and small animals, has seen particular demand for premium pet nutrition brands and specialty formulations.”

Amazon South Africa’s retail head

Amazon South Africa’s retail head for consumables, Philile Mabolloane, said the company would continue to grow its product selection.

“Our goal is to simplify shopping for busy South Africans while offering excellent value across our selection,” said Mabolloane

“The initial customer response has been extremely positive, particularly for our bulk buying options and multipack savings across all three categories.”

Amazon recently told Tech Brunch that its top-selling products in the first year of availability were primarily everyday essentials.

That included toilet paper, dishwashing tablets, shampoo, hand wash, nappies, and general home cleaning liquids.

South Africa’s biggest online retailer — Takealot — has also frequently told MyBroadband that these types of items are among its top sellers.

Online grocery shopping boom

Online grocery shopping boom

With online shopping showing growth in South Africa in recent years, e-commerce retailers could start taking a chunk out of the revenues that established physical retailers make from groceries.

It has become more common for South Africans to hunt for bargains on so-called fast-moving consumer goods (FMCG) and groceries, especially during sales promotions like Black Friday.

Amazon and Takealot could capitalize on South African shoppers being increasingly intentional with their purchasing decisions.

According to Nielsen IQ South Africa client strategy director Gareth Paterson, the focus on saving on ticket items like TVs and appliances has extended to finding deals in groceries and FMCG.

” We expect to see a similar appetite among grocery shoppers for finding value and convenience on digital platforms,” Paterson said.

“Items like personal care, diapers, and fragrances are poised to grow faster, while fresh produce may continue to lag due to higher barriers to entry.”

Amazon and Takealot have several advantages

Amazon and Takealot have several advantages over conventional retailers like Shoprite and Pick n Pay that could extend into their grocery offerings.

Firstly, they play host to numerous resellers that are continuously competing on pricing, often giving consumers multiple choices.

Secondly, they don’t have physical stores to staff and maintain, lowering their overall operating costs substantially.

That could enable them to have lower profit margins and undercut the conventional retailers in pricing on their own grocery and FMCG listings.

Both retailers are also backed by international tech giants with deep pockets. Amazon is in a good financial position globally, so it could comfortably run Amazon.co.za at a loss to gain market share.

While on-demand services like Sixty60, Pick n Pay Asap, or Woolies Dash generally perform well for impulsive low-volume shopping, Amazon and Takealot could have an edge in bulk deliveries.

Consumers may have less of an issue with waiting a day or two for delivery for the best prices on products bought on periodic orders, rather than the speed and convenience preferred for impulse buys.


Read More: Woolworths taking on South Africa’s best tech retailers in 2025.


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