Amazon’s South Africa Launch Could Lead to Collapse of Local Online Retail

A week ago, Amazon launched its e-commerce service in South Africa. Given the company’s sheer size, there is no denying that it will have an outsized impact on the country’s e-commerce industry. While the development bodes well for the consumer, local retailers will most likely have a different experience. According to a recent DW report, Amazon’s launch could leave local online retailers without a job. For one, the company’s resources and finances dwarves those of its competitors and, as a result, will allow it to offer items at a fraction of the price, among other things. However, it is not all doom and gloom for local online retailers. Among other things, some of the largest ecommerce companies can merge and thus improve their chances of providing meaningful competition to Amazon.

SOURCE: DW