Takealot, a major eCommerce platform in South Africa, is reportedly dealing with issues of counterfeit products being sold by dishonest merchants. These sellers are allegedly misusing the platform’s features to offer fake items as if they were genuine.
An investigative journalism program recently highlighted several cases of counterfeit sales on Takealot. One notable example involved the LifeVac anti-choking device, which is exclusively distributed in South Africa by medical device importer Ventria. The LifeVac is known for its effectiveness in removing objects from a person’s airway.
According to the report, a buyer who ordered LifeVac from Takealot received a counterfeit version that lacked branding, packaging, and instructions. Nicolette Grace, Ventria’s director, confirmed this was not the first time they had encountered such issues.
Counterfeit sellers on Takealot often disguise their products as “parallel” goods, which are similar to the genuine items but sold by different merchants. This tactic allows them to appear in the same listing and “Buy Box” as the authentic product. The Buy Box is designed to highlight the best offer based on price and delivery time.
By manipulating the Buy Box algorithm, these sellers deceive customers into purchasing counterfeit items instead of the genuine product.
In a separate complaint from September 2023, a customer accused Takealot of failing to clearly communicate a minimum purchase requirement of R500 for free next-day delivery, leading the customer to file a complaint with the Advertising Regulatory Board (ARB).
Despite these issues, Takealot’s parent company, Naspers, reported a trading loss of R252 million ($14 million) for the eCommerce sector in its fiscal year ending March 31, 2024. This was an improvement compared to the R400 million ($22.2 million) loss recorded in 2023.
Takealot faces competition from other eCommerce platforms in South Africa, including Jumia, Amazon, and Shoprite. Shoprite entered the eCommerce market in early July with a new online shopping and bulk delivery service for small businesses and tuck shops. Amazon also launched its online marketplace in May 2024, offering free delivery on customers’ first orders. In response, Takealot is enhancing its services as Naspers continues to invest in the platform.
