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"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.
"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.
"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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