The focus of this edition of Business Day Spotlight is Amazon’s move to corner the online grocery market as the company refines its SA strategy one year after launching locally.
Host Mudiwa Gavaza is joined by Robert Koen, MD of Amazon Sub-Saharan Africa.
In June, Amazon SA announced the expansion of its product offering with the launch of three popular categories: groceries; pet food; and vitamins and supplements.
Last year, the company found that everyday consumable items proved to be popular on its site in SA. Koen says the retailer’s latest expansion adds to this as the company considers capitalising on items that have proven popular for traditional retailers.
The Amazon executive says early data indicates strong customer interest across all three categories. In groceries, coffee, tea, cereals, pasta, cooking oils and canned goods are emerging as top sellers.
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There has been particular demand for premium pet nutrition brands and specialty formulations in the pet food section. The vitamins and supplements category has attracted health-conscious consumers.
Koen also discusses trends in SA consumer shopping behaviour, with online shopping is becoming more popular.
In places like the US, Amazon’s home country, online grocery shopping has become a mainstay with customers having regular and repeat orders of certain items each week or month, depending on consumption.
Through the discussion, Koen highlights Amazon’s progress since launching locally last year; the growth of its everyday items business; and buying patterns and trends among SA consumers.
Koen also discusses the place of suppliers and businesses selling on its platform, the company’s recent first local summit for this group. He says more than 60% of Amazon’s business, globally, is driven through third-party sellers, making this an important group that the company needs to cater for.
Business Day Spotlight is a MultimediaLIVE Production.
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