Amazon plans to shutter a portion of its e-commerce operations in China to concentrate on cross-border sales
Amazon is said to make some adjustments to their operations in China. Their focus right now is to handle mostly cross-border sales as they have a lot of competition inland right now. They are actively stopping the provision of any services to third party merchants on the Chinese market starting with July 18 at this time.
They actually released a statement about this. They state that they evolved their Chinese business to focus on cross border sales and now they are getting a very good response from Chinese customers. This is a client base that requires authentic and very high quality, and
Amazon is here to fulfill their needs and requirements.
Reuters already talked about this and they shared the info from people close to the Amazon company in China. They are set to make this change until mid-July. Instead of that they will focus on selling goods overseas. They are also about getting cloud services and overseas goods in China, which is quite exciting to say the least.
But a spokesperson from Amazon doesn’t confirm the full withdrawal, but they did agree that support for the third party merchants is removed at this time. There is a catch however. You will not be able to purchase goods from third parties but you can use the ecommerce platform to acquire goods from Japan, Germany, UK and the US, which is interesting.
iiMedia Research has data which states that Amazon managed to accrue around 1.2% of the business to consumer e-commerce in the country for the first half of 2018. That being said, Alibaba’s Tmall is way popular and it has 83.8%, which is a whole lot more. Yet despite that Amazon states that they are committed to China and they are growing the Kindle devices, content, global store and so on.
During November 2015 the Chinese side of Amazon started the global store service that allow people to acquire items from outside China. According to Doug Gurr Amazon is wanting to help Chinese customers acquire international products at prices that are very affordable and easy to enjoy by everyone. They are also delivering some astonishing ideas and some great benefits, which really matter in a situation like this.
Amazon China also has Prime, that was launched in October 2016 and that includes cross-border shipping from other Amazon stores, not to mention free shipping locally. The Prime price is 388 yuan (US$57.23) per year and the first year is even cheaper than that. They are trying to compete with the Alibaba group. And it’s great because you can access a marketplace that’s even more comprehensive and full of features while also getting items from outside the country, all of which are great benefits for Chinese customers!Source