Amazon is closing its domestic marketplace in China due to its intense competition from its rival in its local marketplace. The competitors being business like Alibaba and JD.com being so dominated and china being one of the most lucrative markets of the planet forced Amazon to work on better strategies to improve its business.
A spokesperson from Amazon confirmed to TechCrunch about the shutdown “We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible”. The shutdown means that customers in the country will no longer be able to buy goods from third-party merchants that were selling on Amazon.cn. The amazon.cn is going to shut down on the 18th of July this year.
Chinese businesses are known fiercely to compete with international companies and thereby marking their place. Uber and eBay are examples of companies that could not essentially mark its place in the Chinese market.
What can Amazon China do now?
Amazon in a statement tells The Verge, “Over the past few years, we have been evolving our China online retail business to increasingly emphasize cross-border sales, and in return, we’ve seen a very strong response from Chinese customers. Their demand for high-quality, authentic goods from around the world continues to grow rapidly, and given our global presence, Amazon is well-positioned to serve them.”
Although the Amazon.in users won’t be able to make purchases from third-party seller from China, the users will still be able to order products from other countries like United States, United Kingdom, Japan, and Germany through Amazon’s global store. The users can purchase Amazon’s online content on Kindle as well.
More Insight –
Amazon isn’t just an e-commerce website, it also offers cloud computing services to several Chinese enterprises. Although Amazon is not the only monopoly and has direct competition from Alibaba Cloud which is the dominant player in China. The company has its own market.
Amazon might merge its China operations with NetEase’s Kaola, according to the WSJ. NetEase which is already known for its partnership with Blizzard Entertainment to operate its local versions of World of Warcraft and Overwatch in China and along with that which also runs Kaola.com, an e-commerce platform that sells assorted goods, including diapers, beauty products, and Beats headphones. If at all Amazon merges then it would lose its name but it could at least reap the profits from the region.