Amazon is closing its online marketplace in China for the upcoming summer. As of July 18th, Chinese companies are no longer able to sell items through Amazon.cn. Chinese consumers can still purchase imported goods via Amazon.
The online giant does not give a reason for the departure, but international media suggests that Amazon was struggling with fierce competition from Alibaba’s Tmall and JD.com. According to research agency iResearch Global, those companies have a joint market share of 82%.
Amazon in China claims to have focussed more on cross-border sales during the past couple of years. Chinese customers would frequently purchase products from the US, the UK, Germany and Japan, among others, via the global website. Amazon wants to fix their focus on this.
According to The Wall Street Journal, Amazon is talking to its competitor NetEase about merging their e-commerce businesses for the import of goods in China.