South Africa eCommerce and Takealot face threats

In South Africa, international companies have been dominating with people using them to buy and ship products to their doors.

International companies such as AliExpress, Wish and Shein are slowly taking over South African eCommerce posing a threat to South Africa’s eCommerce companies such as Takealot, Bash, Bob Shop and Makro.

According to Daily Investor’s report, in a presentation in 2021, Parcelninja founder Justin Drennan emphasized on the threat of changing the online shopping landscape in South Africa.

Drennan said that most eCommerce apps in South Africa are international services, with Chinese shops dominating.

The Competition Commission launched a Digital Markets Inquiry aiming at Takealot.

With international eCommerce companies not adhering to local laws or paying local taxes, it created an advantage for them to dominate South Africa.

However, with the shipping and waiting for products may have created an advantage for South Africa’s eCommerce companies but that changed due to Buffalo International Logistics which created an easy way for Chinese eCommerce companies to ship their products to South Africa.

The Shipping company have helped Chinese-based online stores like Shein to gain more attraction in South Africa. The Shein mobile app had been positively received in South Africa as it received the highest number of downloads beating popular apps like TikTok and WhatsApp.

According to Daily Investor, Shein, Wish and AliExpress may be one of the biggest eCommerce companies for years to come in South Africa.