Jeff Bezos’ Amazon, an international e-commerce technology company, has commenced plans to expand to African countries such as South Africa and Nigeria in 2023.
The African e-commerce market will be impacted by this action. Amazon will face off against Konga and Jumia, the two major companies in Nigeria’s e-commerce market, when it launches there.
A report claims that Amazon would remain its United States headquarters while growing to five new nations in South America, Europe, and Africa. These countries are Belgium, Chile, Colombia, Nigeria, and South Africa.
While expanding its US-based outlet, Amazon, which presently operates in 20 other countries, is investing in long-term growth.
For its activities in Africa, Jeff Bezos’ Amazon is also constructing a headquarters in South Africa. However, when some indigenous groups in the nation complained that the IT giant had not used the proper channels to acquire the land on which it was to be built, the project experienced delays.
“Project Fela, codenamed South Africa, is also set to launch in February 2023. Nigeria’s marketplace is set to open in April 2023,,” according to a leaked document.
It also reported that the countries intend to create their own markets and employ Amazon’s fulfilment service.
Can Jeff Bezos’ Amazon crack the e-commerce challenge in these African countries?
Before now, the e-commerce behemoth has maintained tremendous influence across Africa.
Customers in 17 African nations can order products from Amazon to be delivered everywhere.
Cape Town was the beginning of Amazon’s web services division. One of the most used streaming services in the region is Prime Video.
Additionally, Jeff Bezos, the founder of Amazon, has had a big impact on African companies and entrepreneurs.
This does not, however, change the fact that operating an online business in Africa differs from doing it in the West.
Amazon is regarded as the leading e-commerce platform. But will it be able to meet the challenges present in Africa?
Most of the challenges in African e-commerce are logistics, fragmented markets, and the wide range of open markets in the continent.
Many entrepreneurs have been inspired by Amazon’s focus on customers and same or next-day delivery options to deal with these problems, but it has been to no avail.
African entrepreneurs, however, are still trying to crack this challenge.
Most are getting inspiration from how Amazon has also balanced the variety of its operations and offerings while continuing to provide a simple and dependable consumer experience.
By establishing a very high bar for customer service and a generally high standard of service, especially with regard to logistics.
Amazon, however, experienced losses in its first 17 quarters of operation as a public corporation. Due to the numerous flaws the continent has, this may also be an expected result in the initial stages of the giant’s entry into Africa.