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SPEEDRUN – SA’s ever-evolving ecommerce environment

For this morning’s SPEEDRUN roundup we’re highlighting two stories regarding South Africa’s ecommerce sector, which has been evolving at a rapid pace over the past year.

The first involves the recent entry into the country of Chinese outfits Shein and Temu, both of which will have new 45 percent VAT applied to purchases that are under R500. Both ecommerce platforms have found quick success locally thanks to aggressive pricing and rapid deliveries, as the launch of Amazon in SA has not had a similar impact.

Whether the momentum will swing the way of the US online retailer following this crucial VAT change, remains to be seen.

The other piece of news is focused on several recent reports and surveys on ecommerce in South Africa, and why SMEs need to be taking advantage of this booming segment.

“The entrance of international ecommerce giants like Amazon, Temu and Shein into the local market is expected to drive rapid growth in the years to come. SME retailers may need to focus on sharpening their in-store experience, leveraging community connections and investing in their own digital commerce offerings to remain relevant,” highlighted Steven Heilbron, CEO of Capital Connect.

“Last-mile delivery services have set consumer’s expectations for rapid fulfillment of fast-food and grocery orders. Now, we’re seeing logistics providers and ecommerce companies work together to ship nearly any product on-demand. Takealot offers an on-demand, 60-minute delivery service in selected Cape Town suburbs,” he added.

The rest of the stories curated in this roundup run a wide gamut, with a new initiative for BRICS nations, an MoU between MTN SA and Huawei, 10 LEGO-inspired gifts for Father’s Day, and a preview of Luigi’s Mansion 2 HD.

Keep an eye out for a full review of the latter later this month too.

[Image – Photo by Bastian Riccardi on Unsplash]

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