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Amazon reportedly plans major change to China business

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Author: Dan Berthiaume

Source: CSA The Business of Retail

Amazon will reportedly scale back its retail presence in China this summer.

According to Reuters, Amazon will shutter its domestic online marketplace in China in July. Chinese consumers will still be able to order goods from the U.S., U.K., Denmark, and Japan via the global Amazon store. The e-tail giant will also still operate its Amazon Web Services cloud computing business in China, and Amazon’s online content and Kindle e-readers will also still be available.

However, Amazon will close its Chinese distribution centers and stop supporting the sale of goods from Chinese merchants within China. Reportedly intense competition from local e-commerce players Alibaba and JD.com is the main factor in Amazon’s decision to close its Chinese marketplace. Amazon purchased Chinese e-commerce platform Joyo.com for $75 million in 2004 and relaunched it under the Amazon China banner in 2011.



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