As the peak shopping season approaches, South African companies are actively seeking ways to expand their customer reach and maximize online demand. One such entrepreneur is Somizi, who has already listed his products on the Amazon platform.
This step raises a practical question for other brand owners and entrepreneurs: can an established online marketplace contribute to business growth, and what needs to be done to get started?
Selling on Amazon provides companies with an alternative path to customers without necessarily replacing their existing website, physical store, or social media sales channels. The marketplace showcases products from South African sellers, including its own South African storefront, giving local brands a chance to be noticed by online buyers.
For businesses preparing for the busy shopping season, this opportunity should be considered alongside practical aspects. Several questions need to be answered: do you have sufficient stock? Are your product prices competitive? Can you process orders and manage delivery without disrupting current operations?
One aspect to consider is the order fulfillment mechanism. Amazon offers various options depending on the level of responsibility the seller wishes to retain. When using Fulfillment by Amazon (FBA), sellers send suitable goods to an Amazon warehouse. Amazon then manages storage, packing, shipping, customer service, and returns. This can free up time for the business to focus on products and growth, although attention must still be paid to commissions, inventory planning, and product availability.
Another option is Amazon Easy Ship, designed for sellers who manage their own inventory and packaging but require shipping support from Amazon. Alternatively, Self Ship allows companies to organize delivery independently. Choosing the best option depends on the product range, order volumes, available resources, and margin. Before making a decision, potential costs should be calculated, and how each option will work during the peak sales period should be thought through.
Currently, Amazon.co.za offers advertising commissions and incentives for eligible sellers. Under the Professional Selling Plan, the monthly fee is 1 Rand instead of the usual 400 Rand, and this offer is valid until March 31, 2027. The shipping commission is fixed at 5% for all product categories until March 31, 2027.
Furthermore, there are FBA incentives: zero storage fees and waived assembly and packing fees in applicable categories, as well as waived removal and disposal fees until March 31, 2027 (excluding clothing from assembly and packing, removal, and disposal benefits). A 90% discount is provided on inbound shipments for relevant FBA supplies until December 31, 2026. It should be noted that promotions are subject to conditions and may change. Generally, commissions are quoted excluding VAT unless otherwise stated. Before registering, it is necessary to check the current terms and compliance requirements.
Although promotional rates can help reduce initial costs, businesses must factor in the cost of products, packaging, shipping, advertising, and other applicable fees when calculating profitability.
The onboarding process involves registering on the Amazon seller site and providing necessary information about the business, identity, payments, and taxes. After this, product listings can be created with detailed descriptions, clear photos, prices, and availability information. Amazon provides registration guides, educational resources for sellers, webinars, and supporting materials to help companies understand the process and choose suitable selling and fulfillment options.
For entrepreneurs considering their first online marketplace, or for existing brands looking to expand their presence, the next step is to evaluate this opportunity against business goals and operational capabilities. Somizi's experience draws attention to this option. Whether it is viable for your business depends on your products, pricing, and growth plans.
Suzelle Abe, Head of South Africa Markets, stated: 'For sellers, the question is not whether they can afford to sell on Amazon. It is whether they can afford not to sell. We have intentionally lowered barriers so that entrepreneurs can test, learn, and grow. We invest together with our sellers.' She added: 'When sellers succeed, buyers win—and we all grow together.'