The real winner in Amazon and Takealot’s war

The launch of Amazon’s Prime offering in South Africa is set to put pressure on Takealot and other local e-commerce players, forcing them to improve their offerings and reach.

However, the real winner in this battle will be South African consumers and businesses, as increased market activity and the launch of initiatives that drive consumer interest will benefit the industry as a whole.

This is according to Bob Group managing director and e-commerce expert Andy Higgins, who believes that the launch of Amazon Prime will have a positive impact on the local e-commerce market.

Amazon announced the launch of its Prime membership offering in South Africa on Wednesday, 3 June.

For R59 a month or R399 a year, Amazon Prime members will get free same-day and next-day delivery on a wide range of items with no minimum spend.

A Prime membership will also include a subscription to Amazon’s streaming service, Prime Video, and a gaming subscription with Amazon Luna, along with other benefits.

This comes around two years after Amazon first launched in South Africa, and about a year after Takealot launched its version of Prime – TakealotMore.

Takealot’s service, which is divided into a Standard and Premium tier, also offers free same-day and next-day delivery, with no minimum spend for Premium members.

TakealotMore’s standard tier will set members back R39 per month, while Premium members pay R99 a month.

There are other perks that come along with a TakealotMore subscription, including a News24 subscription for Premium members.

Higgins believes that the launch of Amazon Prime will have a positive impact on the local market, as South Africa still lags many of its emerging-market peers when it comes to e-commerce adoption.

“Initiatives that drive consumer interest are beneficial for the industry as a whole. As the saying goes, ‘A rising tide lifts all ships’,” Higgins told Daily Investor.

E-commerce battle heats up

Higgins described Amazon’s Prime offering as “highly competitive”, particularly because it includes a subscription to its streaming service, Amazon Prime Video.

While Amazon’s e-commerce offering launched in South Africa only in 2024, South Africans have been able to subscribe to Amazon Prime Video since 2016.

As of June 2026, this subscription set South Africans back R79 a month – more than Amazon is now charging for a Prime membership. This is set to attract many existing Prime Video subscribers to Amazon’s Prime offering. 

While its current subscriber numbers in South Africa are not publicly available, Digital TV’s research projected that Amazon Prime Video would reach 3.14 million subscribers by 2029 across Africa.

Higgins pointed out that Amazon’s launch of its Prime service came roughly a month after the e-commerce giant removed its generous free shipping option for all orders.

Amazon initially launched free shipping on all orders as a Christmas promotion in 2024, but kept the offering active afterwards to drive uptake.

However, as of May 2026, this promotion was no longer available, with standard delivery now costing R75 for orders below R500.

Higgins explained that this offering was simply not sustainable in the long term.

“One assumes that the latest Prime offering is sustainable, but considering there is still a cost to it, it is not more generous when it comes to free shipping than what Amazon was offering just a month ago,” Higgins said.

Since its launch in South Africa, Amazon has presented a notable threat to local players like Takealot, as the e-commerce giant has a far greater capacity to absorb losses and could, therefore, offer much lower prices on certain items.

To compete against the international giant, Higgins said local players should continue to strengthen their individual brand presence through their own websites while simultaneously embracing marketplaces. 

“By utilising platforms like Amazon, Takealot, and Bob Shop, businesses can build their own brands while benefiting from broader marketplace reach,” he said. 

“For example, while Takealot and Amazon have invested heavily in their platforms, Bob Shop has also experienced unprecedented growth, further demonstrating that increased market activity benefits all participants.”