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News → Amazon to pull Chinese ecommerce arm due to pressure from rivals

As reported by Reuters, the move underscores how home-grown e-commerce rivals have made it difficult for Amazon’s marketplace to gain traction in China. Consumer research firm iResearch Global said Alibaba Group Holding’s Tmall marketplace and JD.com controlled 82% of the Chinese e-commerce market last year.

Amazon shoppers in China will no longer be able to buy goods from third-party merchants in the country, but they still will be able to order from the United States, Britain, Germany and Japan via the firm’s global store. Amazon will wind down support for domestic-selling merchants in China in the next 90 days and review the impact on itsfulfilment centres in the country, some of which it may close.

An Amazon spokeswoman said that the company would continue to invest and grow in Chinathrough its Amazon Global Store, Global Selling, Kindle e-readers and online content. Amazon Web Services, the company’s cloud computing unit that sells data storage and computing power to enterprises, will also remain.





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