• Expansion of successful logistics cooperation to foster growth for SMEs in both established and new markets
• Focus on logistical efficiency and compliant trade to drive mutual market expansion
• DHL to support Temu’s local-to-local initiative, which expects to eventually account for 80% of its sales in Europe

DHL Group, the world’s leading logistics company, has signed a Memorandum of Understanding (MoU) with the e-commerce marketplace Temu to deepen their cooperation and to further expand their successful partnership.

The agreement aims to enhance collaboration to better support local small and medium-sized enterprises (SMEs) in established markets as well as in growth markets, such as Eastern Europe and the Middle East.

Both parties are committed to fostering compliant trade and sustainable practices.

DHL Group will support Temu through its logistics expertise, including multimodal transportation solutions, to provide more efficient and sustainable supply chain services.

With its dense network and global presence, DHL Group is the ideal partner to support Temu’s growth in both established and new markets.

“Through our various DHL divisions, we are already providing a wide range of logistics services and solutions, including air freight and last-mile delivery. We are excited to elevate our partnership with Temu to the next level. By combining our logistics capabilities with Temu’s innovative platform, we can create more efficient, compliant and convenient solutions that benefit both consumers and local businesses in the markets we serve,” states Katja Busch, CCO and head of DHL Customer Solutions & Innovation.

As part of the Memorandum of Understanding, DHL Group will utilize its logistics expertise to support Temu’s operations in Europe, including its local-to-local model, which enables local merchandise partners to sell on its platform and supports local fulfillment.

Temu expects up to 80% of its total sales in Europe to come from this local-to-local model. Additionally, the e-commerce platform will enable European-based sellers to reach global markets in the future.

This allows, in particular, SMEs to scale and expand their businesses. DHL will also assist Temu in growing its presence in e-commerce markets, including the Europe, Middle East, and Africa (EMEA) regions.

“This letter of intent marks a significant step in our partnership with DHL Group. Its extensive network and logistics capabilities will help support our mission to increase consumer access to affordable products and help increase growth opportunities for sellers,” states Qin Sun, co-founder of Temu.

The post DHL Group, Temu sign MoU to Drive eCommerce Delivery appeared first on Tech | Business | Economy.

Being the first Amazon marketplace on the continent, the platform will face competition from established local players like Takealot and bidorbuy.

The South African e-commerce market is estimated to be worth $3 billion annually, attracting Amazon despite the absence of its popular Prime membership program at launch. 

This means no access to Prime’s media services, free shipping perks, or other features that encourage repeat business on Amazon’s platform.

Amazon plans to entice customers with a wide selection of products, including both international brands and locally sourced goods across 20 categories. 

The company is offering same-day and next-day delivery alongside a network of 3,000 pickup points. To further incentivize purchases, Amazon is providing free delivery on all first orders and subsequent orders exceeding R500 (around $27).

Local entrepreneurs view Amazon’s arrival as a positive sign for the overall strength of South Africa’s e-commerce market, which has seen some fluctuations after a pandemic-driven boom. “Competition is good news,” said Francis Dufay, CEO of Jumia, another e-commerce player in Africa. “It validates the opportunity of African e-commerce and helps grow the market.”

However, Amazon’s entry has been a long time coming. The company initially announced its African expansion plans two years ago, targeting both Nigeria and South Africa. 

The launch has been repeatedly delayed, with the South African debut originally planned for April 2023. While independent seller onboarding began in October 2023, the full marketplace launch only materialized this week. The planned Nigerian launch also remains on hold.

Despite the delays, Africa presents a huge growth opportunity for Amazon. The continent’s digital commerce sector is still in its early stages, offering extensive potential for future expansion.

While challenges in supply chain logistics and consumer behaviour conversion exist, Africa’s untapped market holds more promise than saturated markets elsewhere.

“We are excited to launch Amazon.co.za alongside thousands of South African sellers,” said Robert Koen, managing director of Sub-Saharan Africa for Amazon. “We aim to provide South Africans with great value, a broad product selection, and a convenient delivery experience.” 

Amazon is placing a strong emphasis on building relationships with South African businesses of all sizes, aiming to make Amazon.co.za a platform for them to reach millions of customers.

The arrival of Amazon adds another competitor to South Africa’s R55 billion e-commerce space, currently dominated by Naspers-owned Takealot. 

Walmart-owned Massmart is also preparing to enter the online market, further heating up competition. With the pandemic driving a surge in online shopping, Amazon’s launch coincides with a prime opportunity to capture a share of this growing market in South Africa.

The post Amazon Launches E-commerce Marketplace in South Africa, Vying for Share of $3 Billion Market appeared first on Tech | Business | Economy.