Is it Worth Selling on Takealot in South Africa?

Yes, it is worth selling on Takealot in South Africa. However, there's a catch. It may or may not be suitable for your business, thanks to certain factors that may make you take a step back from considering the platform. What are these factors? What makes Takealot a high-risk high-reward platform in South Africa? Let's find out if Takealot is a platform worth selling on in South Africa.

Takealot - The Biggest E-Commerce Platform in South Africa

Takealot is the biggest e-commerce presence in South Africa and has a strong foothold in the market. It is so strong that even Amazon, a global e-commerce giant is struggling to compete with Takealot. This is despite the fact Amazon has lower product prices and dirt-cheap onboarding merchant fees at merely R1 (yearly). We are not going to see Takealot being dominated by any other e-commerce platform in South Africa for a while, that's for sure.

Takealot is a South Africa-exclusive e-commerce platform. This translates into Takealot having a better understanding of the market and the wants and needs of the customers. According to Semrush, Takealot had around 21 million visits in May 2024 alone.

Of course, being on the number one platform in South Africa means the competition will be extremely gruesome. This brings us to our next topic: Takealot seller fees that may turn you away from considering Takealot to make sales in South Africa.

High Seller Fees on Takealot - A Dilemma for Sellers in South Africa

As the name suggests, Takealot 'takes a lot' of fees from you as a seller. The LOLs aside, this may be understandable.

Takealot is a brand of trust and quality in South Africa. Whatever comes out of Takealot, South Africans expect it to be of high quality and also expect good customer service if something goes awry. To maintain the quality, Takealot wants its sellers to put skin in the game. The higher investment costs mean subconsciously sellers will also be critical of the product quality and packaging as they would not want to waste their investment.

However, while that is true, this creates a dilemma for sellers with a weaker budget. If you do not have backup finances to recover from losses, Takealot may not be a solid option for you. It may turn out to be a gamble for you; you may find success and recover better if you manage to attract the right customers to your products, or you may find yourself at a loss if the business does not work out on Takealot. And not to mention, Takealot seller fees can make this worse for you.

We have extensively talked about the Takealot Seller Fees in our Takealot Seller Course. It is free for a limited time, so feel free to take a look. (If it is paid, then you were late to the offer, we're sorry!)

We also have an article about the Takealot Seller Fees in South Africa. Make sure to give it a read.

So, is it Worth Selling on Takealot in South Africa?

Absolutely! You have a product that may fare well on Takealot; or you may have an extensive budget and looking to expand your business in South Africa. In such cases, Takealot is your next step in the game. You can rest assured that your business will grow with Takealot and generate profit despite all the fees eating into your profit margin. Also, the fact that Takealot does care and helps you grow your business with its infrastructure. Let's talk about some pros of selling on Takealot.

Extensive customer base

As Takealot is the #1 platform in South Africa, the platform boasts an extensive customer base. If you are a small business that is doing well locally and looking forward to expanding your reach, Takealot can provide a solid foundation for your growth. With visitors from all over South Africa, Takealot provides you with an extensive reach with different potentials.

Logistics Infrastructure

Takealot boasts an extensive infrastructure of logistics and seller support. Retail businesses or even dropship businesses can benefit from Takealot in South Africa if you are looking forward to expanding your reach and exploring new corners of the country. As a seller, you get access to Takealot's logistics and other tools to streamline the selling process. Takealot can help you with stock storage, order fulfilment, customer service, and much more.

Transparency

Takealot is a transparent platform. All the prices are displayed without any hidden fees. When you take a look at a product on Takealot, you may see different product prices for that one product. The competitive prices are never hidden on Takealot. Of course, on the display, however, will be the cheapest price of the product.

In terms of Seller Fees, Takealot maintains complete transparency. You may see some reviews stating how they faced unexpected fees from Takealot. However, that is not the case. We highly advise you to thoroughly understand and keep track of the Seller Fees to avoid unexpected expenses. If you do not understand nor agree with the fee structure, please consider avoiding Takealot.

Summing up, Takealot can be a great platform for you if you are an already established business looking for a nationwide outreach. On the other hand, if you are just a startup, we strongly advise you to gain a foothold in your local markets before playing the big game.

Conclusion

Takealot is a great platform if you are an established business. Of course, several other factors may help you consider Takealot. These factors are profit margins, the type of products, and understanding and managing the fees. We must note that Takealot does not have any hidden fees. Again, we have explained extensively about Takealot Fees in our Takealot Seller Course.

If you have any questions regarding the Takealot Seller Course, feel free to reach out to us.