Amazon China's Marketplace Is Shutting Down
The company will cease the E-commerce business this summer.
As CNBC reports, Amazon is shutting down its e-commerce business in the China market. Amazon will officially close the domestic marketplace this summer as the tech giant shifts its focus to cross-border sales.
“We are notifying sellers we will no longer operate a marketplace on Amazon.cn and we will no longer be providing seller services on Amazon.cn effective July 18,” the company stated, according to a report by the Financial Times.
“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 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.”
Amazon debuted in China in 2004 after acquiring domestic web retailer Joyo, reaching up to 15 percent of the market share at its pinnacle. That number has since diminished to one percent, as growing pressure from other in-region platforms such as Alibaba and JD have shoved the company aside.
While customers will no longer have access to product from third-party Amazon sellers in China, they will still be able to use Amazon.cn to make purchases from the U.S., U.K., Germany and Japan sectors.
As the brand continues to evolve, Amazon also recently rolled out its “Project Zero” initiative, a program intended to stop counterfeit goods.
