Apr 19, 2019 12:00:00

Amazon struggles with Chinese companies such as Alibaba to withdraw from online shopping business for China

by

Stephen Woods

Amazon is, has been reported to be planning to withdraw to the prospect of mid-July 2019 from China's online shopping market. Amazon plans to close its Chinese fulfillment center in the next 90 days and reduce its support for domestic distributors in China. If Amazon completely withdraws, Chinese users will not be able to purchase goods through Amazon from domestic merchants.

Amazon, facing entrenched rivals, says to shut China online store-Reuters
https://www.reuters.com/article/us-amazon-com-china/amazon-facing-entrenched-rivals-says-to-shut-china-online-store-idUSKCN1RT2A7

Amazon Gives Up on Chinese Domestic Shopping Business-The New York Times
https://www.nytimes.com/2019/04/18/technology/amazon-china.html

An Amazon spokeswoman told Reuters that Amazon is thinking of not expanding its online shopping market in China, and offers its distributors with Amazon.cn, the Chinese version of Amazon. Having told the trader not to do. A spokesman commented, 'A business that wants to sell through Amazon outside of China can sell through Amazon Global Selling .'

Amazon acquired China's online shopping site Joyo.com in 2004 for $ 75 million, and rebranded it in 2011 as Amazon.cn. However, according to iResearch Global , a consumer research firm, the online shopping market in China is strongly supported by Chinese companies such as Alibaba ( Ari Ling Group ) and JD.com ( Gyeongdong Shangcheng ), and by 2018 Alibaba and Two JD.com companies accounted for 81.9% of the Chinese market share. Although it is Amazon, which offers the world's largest online shopping site, it seems that China has had a considerable struggle.

by Felipe Spina

In addition, according to the information provider, Chinese Amazon users will not be able to purchase products from merchants in China. However, online content such as Kindle electronic books and music can be purchased, and it is possible to order products from the United States, United Kingdom, Germany, and Japan through the Amazon Global Store.

An Amazon spokeswoman told Reuters, 'We will continue to invest and grow in China through Amazon Global Store, Amazon Global Selling, Kindle, and Online Content.' In addition, Amazon Web Services, a cloud computing service provided by Amazon, will continue to be deployed in China.