Amazon, a global marketplace and logistics company, is looking to attract more South African small businesses to its marketplace as it targets a bigger share of the country’s growing e-commerce market
The Small Business Digital Adoption Report, a new study of 1,400 South African small and medium-sized businesses by World Wide Worx, an independent technology market research firm commissioned by Amazon, found that 86% of respondents generate sales online. Yet only 32% of businesses selling online use major marketplaces, while logistics, delivery and returns remain significant obstacles to growth.
The findings, released on Tuesday, show that South African small businesses have moved beyond getting online. Their bigger challenge is managing the costs, deliveries and customer expectations that come with growth. Amazon is positioning its marketplace and logistics network as a way to help them scale locally and reach international markets.
“We expected to find a market that was still wrestling with the basics of getting online. Instead, we found a market that has moved past that stage and is confronting an entirely different set of challenges,” Arthur Goldstuck, chief executive (CEO) of World Wide Worx, said at the launch on Tuesday.
The research found that 62% of active online sellers identify logistics and delivery as a major challenge, while 46% struggle with returns management.
