- Takealot, a South African eCommerce platform, is reportedly being exploited by duplicitous merchants taking advantage of some of the platform’s features to sell replicas and counterfeit goods under the guise of genuine products.
- A report featured an investigative journalism programme, highlighting various cases, including one involving the LifeVac anti-choking device. Exclusively distributed in South Africa by medical device importer Ventria, LifeVac is known for its life-saving ability to dislodge objects from a patient’s airway.
- The report narrated an incident where a buyer ordered Ventria’s LifeVac from a listing on Takealot but received a counterfeit version without branding, packaging, or instructions. Nicolette Grace, Ventria’s director, stated that this is not the first time they have received such a report.
On Takealot, sellers of counterfeit products often claim they are selling parallel products, which are items that are the same as another but sold by a different merchant. This allows these sellers to share the same listing and “Buy Box” as the genuine product. The Buy Box is designed to show customers the best offer for a listing, displaying price and delivery time.
By exploiting the algorithm behind the Buy Box, sellers of counterfeit products trick shoppers into ordering their items instead of the genuine product.
In another complaint in September 2023, a customer alleged that Takealot failed to adequately inform them about the minimum purchase requirement of R500 for free next-day delivery, hence the customer complained to the Advertising Regulatory Board (ARB).
Amidst these complaints, Takealot’s parent company, Naspers' financial report for the fiscal year ending on 31 March 2024, showed a trading loss of R252 million ($14 million) for the eCommerce, though an improvement from the R400 million ($22.2 million) loss recorded in 2023.
Takealot is not the only eCommerce player in South Africa, other platforms such as Jumia, Amazon, and Shoprite play alongside Takealot. In early July, Shoprite made its first move into eCommerce and introduced an online shopping and bulk delivery service for small businesses and tuck shops in South Africa.
In May 2024, Amazon launched its online marketplace with free delivery on customers' first order. However, Takealot is stepping up its game as Naspers boosts its investment in the platform.
