Amazon China will no longer sell Chinese products



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It will close its market in China in the coming months, which means that Amazon's customers in the country will no longer be able to buy products from Chinese merchants.
Amazon (AMZN) He did not explain why he was withdrawing his service from the market, claiming only that he would rather focus on selling goods shipped to China by other countries.

"We are informing vendors that we will no longer operate a market on Amazon.cn and that we will no longer provide vendor services on Amazon.cn as of July 18," the company said in a statement.

Amazon's platform is competing with Chinese sellers with Tmall, which belongs to the country's online trading leader. Ali Baba (Baba).
Amazon entered the Chinese market 15 years ago, when it acquired an online book retailer, but had to face fierce competition. Research suggests that the company's market share in China was minimal compared to local competitors.
China's online retail market is huge, recording annual sales of about $ 2 trillion, according to a firmer researcher, eMarketer. The US market accounts for just over a quarter.
The Chinese market is dominated by Alibaba, which accounts for more than half of transactions, and its local competitor JD.com (JD), the eMarketer data shows.

"There is too much competition in the domestic market and Amazon does not have the kind of brand awareness that Tmall or JD.com," said Ben Cavender, an analyst at China Market Research Group. "This leaves Amazon in a position where it has to spend a lot of money to acquire customers while competing aggressively with several powerful price players."

Singles Day, Alibaba's annual online spending blitz, consistently has larger sales than Black Friday and Cyber ​​Monday combined.

Users who connect to Amazon's Chinese site after July 18 will see products sold in its global store, the company said.

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"In recent years, we have expanded our online retail business in China to put more emphasis on cross-border sales, and in return we have been very well received by Chinese customers," he said. said Amazon.

It will keep its other activities in China, such as cloud computing services. It will also continue to sell its Kindle electronic readers and content in the country.

"Amazon's commitment to China remains strong, we have built a solid foundation here in several successful companies and we will continue to invest and grow in China," the company added.

Michelle Toh contributed to this report.

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