Selling on Takealot Marketplace vs CMH (Community Market Hub) for a small business in South Africa —

  

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✅ Takealot Marketplace

Advantages

1. Large customer base & strong brand trust

   • Takealot is one of the largest e-commerce marketplaces in South Africa. Sellers point out that “sales through Takealot completely dwarf other channels”. (MyBroadband)

   • Customers trust the platform; this can reduce your “unknown brand” risk. (South African Things)

2. Logistics/fulfilment support

   • Takealot offers warehousing, fulfilment services (FBL) and nationwide delivery infrastructure which you can leverage. 

   • This means you can scale more easily without building your own full logistics system.

3. Exposure / growth potential

   • Because of its size, you have the potential to reach many more buyers than a smaller marketplace. (MyBroadband)

   • There are tools and seller dashboards to manage inventory, pricing, etc. (Gometa)

4. Credibility and platform stability

   • Being on a mature and widely-used platform lends credibility to your brand. For many customers, buying through Takealot feels safer.

Disadvantages

1. High fees and cost complexity

   • There are multiple costs: monthly subscription (~R400+ in many cases) (Business Tech Africa)

   • Success / commission fees varying by category (e.g., 4%-18% or more) (Business Tech Africa)

   • Fulfilment / storage / shipping fees can be significant (e.g., if goods sit in warehouse long or are large) (Business Tech Africa)

   • One seller’s comment:

     “If you sell an item … for about R380, my transaction fees are usually around R43 … the total cost is R108, leaving me with only R12 profit.” (Reddit)

   • So margins can be tight, especially for low-ticket items.

2. Strict performance / stock / logistics requirements

   • Takealot has strict rules: e.g., you may need to have a high percentage of your stock in their distribution centres to qualify for better placement. (MyBroadband)

   • If you fail service-level agreements (SLA) for lead-time or delivery, you risk penalties or loss of privileges. (MyBroadband)

3. Reduced branding / control

   • Because you’re part of their marketplace, you may have less ability to control customer experience, branding, packaging, positioning etc. One article notes: “limited control over your brand” is a con. (South African Things)

   • You compete directly in a big market with many sellers; price competition can be fierce and visibility depends on algorithm, performance etc. (South African Things)

4. Risk of margin erosion & complexity for beginners

   • If you’re small, new, selling low value items or have weak logistics, you may struggle to make good profit after all fees and costs.

   • Some sellers complain about complexity and bureaucracy. (Reddit)

Best for…

• Businesses that have higher-ticket items (so the fees are a smaller % of margin).

• Businesses that can handle logistics, stock management, warehousing or use Takealot fulfilment.

• Businesses that want scale and are willing to invest time/money into meeting marketplace requirements.

• Brands that can leverage the large audience and are comfortable operating under more rules.

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✅ CMH (Community Market Hub)

Advantages

1. Low cost / lower entry barrier

   • CMH allows vendors to join free in many cases (free vendor tier) and pay commission only when sales occur. (Community Market Hub)

   • Commission structure is clearer: e.g., free plan + 20% commission to CMH for standard products; no or much lower monthly fixed fee. (Community Market Hub)

   • Because you aren’t forced into large stock, big warehousing or huge monthly fees, it’s less risky for small / new sellers.

2. Designed for small / local entrepreneurs

   • CMH explicitly says it’s built for “local entrepreneurs, freelancers and small businesses” with tools & support. (Community Market Hub)

   • They emphasize community support, marketing assistance, affiliate networks and safer/structured selling environment. (Community Market Hub)

3. Flexibility and control

   • With lower cost and fewer strict logistics demands, you may have more control over your brand, shipping, and pricing.

   • Good place to test items, build brand, test markets without high fixed overhead.

4. Simplicity

   • For a small business, simpler onboarding, lower risk, less complex infrastructure might be better. CMH appears to have simpler structure for novices. (Community Market Hub)

Disadvantages

1. Smaller buyer base / less scale

   • CMH is less established compared to Takealot, so your exposure / reach is likely lower. The number of buyers visiting the site is smaller, so you may need to work harder on marketing.

   • One article: “It’s newer platform—but growing fast.” (Community Market Hub)

2. Potentially lower traffic / fewer features

   • Because it’s less mature, you may not get the same logistics infrastructure, fulfilment options, or marketing boost that a big platform like Takealot offers.

   • If your product requires fast delivery, large volume shipping, or heavy logistics, CMH might not have the same capability.

3. Commission is still significant

   • While no or low monthly fees, commission rates are around 15% for standard products, 18% for high-margin product category, etc. (Community Market Hub)

   • So you still need healthy margins to make profit.

4. Marketing / visibility effort falls more on you

   • Because fewer built-in buyers, you may need to do more of your own marketing, social media, drive traffic etc. The “platform” effect is weaker than for a major marketplace.

Best for…

• Micro-businesses, side hustles, handmade goods, local niche products that may not need huge scale immediately.

• Businesses that want to test market or sell lower volume items, and want less risk.

• Sellers who value control, want to keep overheads low, and are comfortable performing more of their own marketing.

• Sellers with unique / artisanal products rather than mass-volume product categories.

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🧮 Side-by-Side Summary

Feature	Takealot Marketplace	CMH (Community Market Hub)
Buyer reach / brand trust	Very high — large audience, trusted platform	Lower — smaller platform, still building presence
Monthly fixed costs	Yes – subscription + additional fees	Very low or zero to start; mostly commission
Commission / fees	Variable but can be high: success fees, fulfilment, storage, etc. (Business Tech Africa)	Clear commission structure (e.g., 15% standard) + optional subscription for lower commission tier (Community Market Hub)
Logistics / fulfilment support	Strong infrastructure, warehousing, shipping handled	More self-managed; fewer large scale logistics built-in
Brand / control	Less control; you’re a seller on a big platform with many rules	More flexibility and control for seller brand and operations
Risk & barrier to entry	Higher risk/costs; need scale and robust operations to profit	Lower risk; better entry for small/new sellers
Suitability for small business / side-hustle	Possible, but need to manage costs and margins carefully	Very suitable for small, lower volume, or experimental sales