There was much jubilation and excitement last year when it was announced that Amazon would be rolling out its services in South Africa early in 2023. A number of South Africans were over the moon about the great possibilities offered by Amazon’s online offerings, but so far there has been no joy.
AMAZON’S SA LAUNCH
It was reported last year that Amazon had secured warehousing in South Africa and that it was also working with local courier companies and fast-moving consumer goods retailers in the country.
Amazon said it would launch a marketplace, as well as Amazon Prime services in South Africa, under the codename “Project Fela”.
The South African project includes the launching of a marketplace in the country as well as plans to launch a “Fulfilment by Amazon” service for third-party sellers.
Amazon was initially also set to launch its services in Nigeria in April this year, after the launch of its services in South Africa
WORSENING ECONOMIC CONDITIONS
The deteriorating economic climate has led to a number of global companies having to trim expenses and apply cost-cutting measures. Amazon’s launching in new markets appeared to have been put on ice with the cost-saving measures having been implemented by the company.
Amazon CEO Andy Jassy announced last week that the company would be laying off more than 18 000 employees as part of its annual planning process.
“These changes will help us pursue our long-term opportunities with a stronger cost structure.” Jassy said, per BusinessTech.
SA PROJECT ROLLS AHEAD
Doubts over the launch of South Africa’s Amazon.com have emerged after the company started to cut costs due to weakening economic conditions across the world.
Amazon has not yet officially commented on its plans for South Africa.
According to BusinessTech, a source close to the project says that Amazon has halted its plans for a Nigerian launch but that it is continuing with its plans for South Africa.
“Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” Jassy said.
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