Increasing competition from domestic rivals – JD.com and Alibaba’s Tmall entrenched Amazon in China. The world’s largest e-commerce retailer- Amazon failed to impress Chinese users through its online store. Amazon will cease its online store operations in China by July 18th. It will keep focusing on selling overseas goods and cloud services in the country.
The Chinese e-commerce market majorly relies on domestic players which constitute 82 percent of the total market. Alibaba’s Tmall and JD.com are the biggest online e-commerce portals of China.
The buyers won’t be able to place orders on Amazon China online store. Whereas they can keep enjoying overseas shipments from Amazon’s global stores in the United States, Britain, Germany, and Japan. Within the next 90 days, Amazon.cn will cool off support for all its domestic dealers.
“We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible,” the spokeswoman said in a statement.
The company will keep investing in the country through its Global Stores, Global Selling, Kindle-e-readers, and other online content. Amazon Web Services and other businesses will remain unaffected with the Amazon.cn shutdown.
The sudden announcement from Amazon, made shares of Alibaba and JD.com rose 1 percent.
The multinational companies are facing stiff competition from Chinese retailers. In 2016, Walmart sold its entire online shopping platform to JD.com in China. On the other hand, Xiaomi and Huawei are trending with the increasing shares in the electronics market. Google, Netflix, Facebook, Google all are struggling to get into China’s increasing economy to reap some benefits.
(source)
