Over the past year, news about Amazon's layoffs and business contraction has long occupied the headlines, showing that the e-commerce giant has tried various methods to reduce costs.
But according to people familiar with the matter, Amazon still plans to enter the South African market and promote its Amazon Prime service this year.
Last year, it was reported that Amazon planned to launch a shopping platform in South Africa in February 2023. The project is code-named "Project Fela" and also plans to provide FBA services for third-party sellers .
Amazon’s Prime membership program will also reportedly be available to South Africans soon after the platform launches. Amazon is also preparing to launch a new project in Nigeria under the same code name , expected shortly after the South African platform launches in April 2023 .
However, there are doubts about Amazon's plans to launch in South Africa amid weak economic conditions, which have seen the company undertake major cost- cutting moves . Last week, Amazon CEO Andy Jassy announced that the company would lay off more than 18,000 employees. Jassy said : "Amazon has withstood the impact of the bad economic environment in the past year , and we will continue to do so in the new year . "
As Amazon braces for an economic downturn in the new year , many stakeholders are questioning whether the Fela project will go ahead as originally envisioned.
The good news for South Africans is that Amazon has not stopped its plans to launch its shopping platform in South Africa . A source close to the project said that Amazon has paused the launch of the platform in Nigeria but is still continuing its project in South Africa .
Amazon has not yet officially commented on the South African project , but has invested heavily in it .
It is understood that the e-commerce giant has already deployed sufficient warehouse space in South Africa and is negotiating future cooperation with local express companies and fast-moving consumer goods retailers .
Some people have even discovered that the Amazon.co.za domain name has appeared in the country/region drop-down list on the Amazon.com website.
According to insiders, Amazon has begun recruiting relevant personnel in South Africa to advance the progress of its platform entry . Last year, Amazon released a large number of recruitment advertisements, including management positions related to its South African market .
Amid the cries of layoffs and warehouse closures, Amazon is still obsessed with the South African market, which shows how much importance it attaches to the South African market. If the platform can be opened normally in the future, it will naturally be good news for cross-border sellers. Amazon South Africa |
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