Why Takealot beats out Makro

Takealot is South Africa’s largest online shopping platform, with over 2 000 employees and sales of around R1 billion per month, according to MyBroadband.

Where Takealot succeeded: 

• Takealot’s dominance is due to its logistics – the acquisition of Mr Delivery in 2014 gave the business ownership over its own logistics network through the Takealot Delivery Team division (formerly Mr D Courier).
• Takealot offers unrivalled service levels and support
• Takealot centralised its marketplace logistics, which means shoppers who purchase a product through its platform receive a consistent experience, independent of the seller.

Where Makro falls short:

• Makro is a trusted brand with a national network of stores, exceptional buying power, and established logistics partnerships
• Makro’s logistics fell apart – many online shoppers wait for weeks for their Makro orders to be delivered, and their support channels are a mess
• Makro has a decentralised model which leaves it up to third-party sellers to send packages to shoppers.