Amazon 'throws in the towel' in China in the face of the strength of Alibaba and other local online trading rivals

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The US company Amazon announced on Thursday that its platform will no longer be available to third-party vendors in China starting next July 18, which means its defeat in the Asian country before e-commerce giants such as Alibaba and JD.com, reports The Verge.

However, the company founded by Jeff Bezos plans to allow Chinese customers to buy in international versions of their website, including the US, UK, Germany and Japan markets. Also, Amazon says that is revaluing its strategy compliance in the Asian country to meet the needs of this nation.

"In recent years we have been evolving in our online retail business in China to increasingly emphasize cross-border sales," Amazon explained to The Verge, stressing that they got a great response from Chinese customers. "Their demand for authentic and high-quality products from around the world continues to grow rapidly and, given our global presence, Amazon is well positioned to serve them," added the US firm.

Possible merger with Kaola

On the other hand, Amazon emphasizes that it will maintain its sales services through the Amazon Web Services cloud, as well as Kindle and e-book content. In addition, it will remain accessible to third-party vendors in China who want to supply buyers from all over the world. At the moment, the Bezos company intends to continue operating with a more limited and economical 'Prime' version that excludes advantages in ordering videos.

Amazon, which has been operating in China since the beginning of the last decade, It represents 6% of the Chinese market in terms of electronic commerce. However, after almost two decades of services he sees that he can not compete with some of his local rivals, whose shipping costs are very low, sometimes even free. The US company does not charge shipping costs only when the price of the order ranges between 8.79 and 29.81 dollars, and depending on whether the item is included in the 'Prime' service.

According to The Wall Street Journal, Amazon could merge in China with Kaola from NetEase, an e-commerce platform that sells all kinds of products, from diapers to headphones. Although if the merger is specified, the US company would have to operate in the Asian giant under the name of Kaola.

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