First Mover Advantage: How Much Longer Will It Be Available?

First Mover Advantage: How Much Longer Will It Be Available?

Amazon's South African eCommerce marketplace launched in May this year and while the platform remains both undeveloped & unsaturated there is a First Mover Advantage.

See the links below for a breakdown of the First Mover Advantage, or consider the nutshell:

  • Amazon marketplaces are Pay-to-Play which means sellers have to allocate significant budgets for pay-per-click (PPC) Ads.
  • High Ad spending is necessary to enter Amazon marketplaces because they are very competitive. In the USA alone there are ~4000 new sellers joining every day...
  • To generate sales on Amazon your product must rank on the first page.
  • Amazon's algorithm considers sales history and reviews to establish rankings.
  • Thus, the chicken-egg problem (causality dilemma) where in order to get sales - by ranking on page 1 - your products require a sales history!
  • This is why Amazon is a pay-to-play platform. New sellers need to 'buy' sales via Ads in order to rank well and generate organic sales.


Learn more about the First Mover Opportunity offered by Amazon’s fresh launch in SA:

Read: What does it mean that Amazon is pay-to-play? {https://www.fluidsa.co.za/blog/what-does-pay-to-play-mean-on-amazon}


Amazon South Africa is the only Amazon marketplace that is not (yet) Pay-to-Play. This is simply because it is not yet very competitive, which makes it possible to generate sales without ads and secure rankings on the first page.

fluid/sa has helped many of its selling partners achieve the #1 selling spot without spending 1 cent on ads!

This is a truly unique opportunity: The chance to rank on the top of an Amazon marketplace by "simply" optimizing your product keywords, back-end, content, and account health is awesome. Those are the basic services of any Full-Service Amazon Agency.


The chance to rank on top of Amazon.co.za is only interesting to sellers if it can generate them great sales. Currently, Amazon ZA does not generate fantastic sales for its sellers, however, this is how every Amazon marketplace starts... Amazon has launched in far bigger countries, with signifcantly heavier competition than Takealot, and Amazon has succeeded every time!

Amazon dominates in the USA and they adopt a patient strategy of long term investment to echo this success globally. From Japan, UK, Spain, France, to Germany, Brazil, Egypt and Poland, Amazon's eComm platform ends up as a massive marketplace each time.

South Africa will be no different.

Amazon has done its research! South Africa's eCommerce market is growing rapidly. Consider the fact that eComm penetration (eComm sales as a ratio to retail sales) has trippled in the past 5 years.

Learn more about the South African eComm environment:

https://www.fluidsa.co.za/blog/south-african-ecommerce-the-amazon-opportunity


When you look at Amazon's global track record it becomes very clear that in a couple years Amazon.co.za will also be a success. There are more reasons that speak to this result than Amazon's global success. Consider this blog: Why Amazon South Africa Will Succeed {https://www.fluidsa.co.za/blog/looking-back-at-one-month-of-amazon-south-africa}

“Amazon’s deep pockets, technological leadership, global presence, brand recognition, and eComm leadership suggest that it is just a matter of time until they lead the South African marketplace!”


To recap:

  • Sellers can achieve top rankings on Amazon.co.za far easier (cheaper) than any other Amazon marketplace.
  • As Amazon.co.za grows then the early sellers will retain their top rankings and enjoy great sales growth.


And this is where the biggest opportunity starts. While South Africa offers great sales potential, Amazon's American and Eurasian marketplaces are far bigger and will remain bigger for years to come.

The reviews that your products gain on Amazon.co.za can be transferred across to global Amazon marketplaces. This means you will not be entering these competitive (pay-to-play) marketplaces as a new seller, rather, you will join the ranks of sellers with algorithmic credibility and save significantly on otherwise necessary Ad spend.

And it all starts by listing on Amazon.co.za as soon as possible. Take the First Mover Advantage! fluid/sa, South Africa's First Full-Service Amazon Agency, connects sellers to this future.

Connect with us - connect with the future.

WhatsApp fluid/sa here.


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