The impact of Amazon’s recent entry into South Africa on the local industry

In May, Amazon launched in South Africa, offering 20 product categories, including pet supplies and accessories.

While pet food is not yet available, the platform provides items like apparel, leashes, grooming tools, health care products, litter supplies, training tools, toys, beds, feeding supplies and habitats for various pets, including cats and dogs.

“We’ve had a fantastic response from sellers,” Robert Koen, Managing Director of Amazon Sub-Saharan Africa, tells GlobalPETS.

The e-commerce giant is currently selling 31 local and international pet brands to the South African market, such as Benebone, Furhaven, Jolly Pets, Petmate and Purina Tidy Cats.

The logistics

Amazon has opened 2 distribution centers in Johannesburg and Cape Town and partnered with goods carrier service Pargo and other courier companies to streamline the delivery process.

Koen states that new product listings are increasing daily, signaling Amazon’s commitment to long-term growth in the market.

Is the local pet industry under pressure?

The local industry is closely following Amazon’s new entry into the South African market.

“Amazon is most certainly seen as a serious entrant into the space, and one would assume that their entry will introduce considerable competition for the existing independent and e-commerce retailers,” Johan van Jaarsveld, Managing Director of pet food manufacturer Montego Pet Nutrition, tells GlobalPETS.

The manufacturer, which has seen “healthy growth” in its online sales, is expecting this to increase with the launch of Amazon.

Despite the pressure of competing with an e-commerce giant, van Jaarsveld attests to the strength of specialty pet retail channels in the country. “Most people are of the opinion that Amazon would first take business from existing e-commerce players before it will have an impact on brick and mortar.”