Amazon to pull plug on China retail operations: report



Shanghai (AFP) - Amazon plans to close down its online retail operations that cater to consumers in China in an apparent admission of defeat to local e-commerce rivals such as Alibaba and JD.com, a report said on Thursday.


The US e-commerce pioneer will maintain other operations in China such as Amazon Web Services (AWS), Kindle e-books and cross-border teams that help ship goods from Chinese merchants to customers abroad, Bloomberg News said, citing unidentified people familiar with the plans.


An Amazon spokesperson did not explicitly confirm plans to throw in the towel on domestic e-commerce, but said the company was looking to focus more on cross-border sales.


"Over the past few years, we have been evolving our China online retail business to increasingly emphasise cross-border sales, and in return we’ve seen a very strong response from Chinese customers," the spokesperson said in a statement emailed to AFP.


The company was making "operational adjustments to focus our efforts on cross-border sales in China", the statement said.


Founded by Jeff Bezos 25 years ago, Amazon in January became the world's biggest publicly traded company by market value and dominates in the United States and other markets.


But Amazon has struggled to make headway in China, where a host of nimble rivals led by Alibaba and JD.com have capitalised on domestic supplier networks and a deeper understanding of Chinese consumers to gobble up market share before Amazon could gain a foothold.


Amazon has tried to make a go of it on China retail, investing in logistics and acquiring Chinese online book seller Joyo in 2004.


But it has barely made a dent.


The firm occupied just 0.6 percent of Chinese business-to-consumer online retail in the fourth quarter of 2018, with Alibaba's Tmall taking 61.5 percent, and JD.com 24.2 percent, according to China-based Internet consultancy Analysys.


Li Cheng, founder of the Beig-based internet financial research house Dolphin Think Tank, said Amazon was hurt by not adapting to what works in China.


"Amazon has been unwilling to localise in China, which feels kind of arrogant," Li said.

"They still insist on American-style web pages and do not prome merchandise during the 'Double 11' shop season, in which Chinese e-commerce companies Alibaba and JD put a lot of effort."


"Double 11", also called "Singles' Day" refers to an annual shop extravaganza that takes place each November 11 and in which tens of billions of dollars worth of merchandise is bought, in China's answer to the US "Black Friday" shop day.


The Amazon statement said that "we will continue to invest and grow in China across Amazon Global Store, Global Selling, AWS, Kindle devices and content".


Bloomberg News called the move the latest sign that Amazon, due to the difficulty competing with Chinese rivals, would focus its overseas attention on India's growing market.


Amazon opened an India website in 2013 and has invested healy in logistical infrastructure.



译文来源:三泰虎 http://www.santaihu.com/47429.html    译者:Jessica.Wu


alex15 hours ago

15% seller fees plus 20% advertising cost to market your product on Amazon, most of sellers are not making money. And consumer can find cheaper products from other websites. That is why Amazon fail in China.



cup of tea15 hours ago

After all, majority of Amazon's products came from China. How can it compete with bigger companies like Alibaba in China?

Alibaba is 8 times bigger talking about total sales online. 2+ trillion vs 230 billion.

毕竟,亚马逊的大部分产品来自中国。它如何在中国与阿里巴巴这样的大公司竞争? 阿里巴巴销售额大8倍。2万亿VS 2300亿。


eeyaw9 hours ago

If you think China market is difficult wait till you deal with india?



Blue Light Special15 hours ago

Are we not able to outsource manufacturing of a lot of the products that are currently being made in China and sold to US consumers by looking at other countries?




They need to start promoting American products more and deal less with China. China has dominated the market to long. We need to start producing our own products again.



Keyser Sozeyesterday

Alibaba is actually closer to EBay while jd.com is the Amazon knockoff.



cup of tea14 hours ago

Alibaba is actually closer to EBay while jd.com is the Amazon knockoff.

Alibaba and JD are much bigger than Amazon and EBayfor the annual sales online.

JD's singlesday sales alone is 25B dollars. Alibaba is time bigger.




ABC5 hours ago

Amazon did not develop Chinese market. They bought it and the their share was 15% of total Chinese market. They failed to expand since then. Now Amazon China is now only 2%. Well, pulling the plug is an honorary way to say we are retreating.



KissedOffCanuck12 hours ago

First, eBay had its teeth knocked out by Alibaba. Now Amazon ran away from China with tails between legs.

They will blame China's go nment policy which discriminates foreign investment instead of admitting they do not understand the Chinese market.




zho4 hours ago

the competition in China is brutal. everything is ship free. you buy a 50 cents item, it's ship free. the ship alone is at least 70 cents. Amazon can't compete with taobao and jd. now the late comer duoduo is here. there's no place for zon.zon is light years behind in terms of customer experience.



Harry B. Furr4 hours ago

they're tired of the counterfeit knock-offs. it can't be stopped.



Nick15 hours ago

In addition Amazon should stop selling products for Chinese sellers.



Anonymous13 hours ago

You can't out cheap the Chinese in China.



David5 hours ago

do you think Alibaba and JD.com will do good in USA, it is the same reason why Amazon will not work in China. Stay in your own turf.



blue12 hours ago

zon first fail bigbusines



Gino9 hours ago

American Companies in China are not meant to be successful.



Mario/Matt14 hours ago

Amazon is the first company to fold in China. Soon others will follow if they don't learn their lesson. China is out to replace the USA as the dominant country in the world. China makes you believe that they want to be your partner in the end all they want is to steal your product and technology. Once they dont have use for you, you are out off luck!!!!



Sueno8 hours ago

China pushes out all foreign competition. China, without a doubt, runs the world!



KissedOffCanuck12 hours ago

If you buy a Chinese product on Amazon North Amerca website, the price is up to 10x more expensive from little things like glues to thermometers than what they are selling on Alibaba in China.

The profit margin for Amazon is incredibly large! If you think you could save money by buying online, then you are a big sucker, especially you buy from Amazon.




Pylon2 hours ago

Nothing new. Just another foreign company unable to make inroads into China since China will only support their homegrown Chinese companies after they have stolen and hacked from Western companies. There never was free trade with China and there never will be.



wei3 hours ago

It will be even harder than in China to do business in India.



Marisa9 hours ago

I'm happy if China kicks all US companies out of China and the US kicks all Chinese massage parlors out of the US.



tri13 hours ago

I'm so sick and tired of buying Made in China stuffs.



Malibu15 hours ago

Chinese products are cheap. It is actually a GOOD thing. Who wants to buy cheap #$%$ and then have to wait 10 years to get it? No more Cheap Chinese products. QUALITY AMERICAN!



**Stars In The Sky**5 hours ago

so zon got screwed by chinese, yet it still hires a lot of them here in the US?

similarly, just wait until india screw zon. it'll come, soon




j13 hours ago

They don't want USA over priced junk.....



Mark3 hours ago

Time to end all trade with China-they steal too many of our secrets.



S5 hours ago

I urge all Americans to stop buying anything made in china.



Stevens12 hours ago

I hate receiving an Amazon product shipped directly from China. Unfortunately, this action probably won't stop that.



YourDad5 hours ago

Amazon bankrupt in CHina ! HAHAHAHAHAHA what a loser ! As stupid as Apple !


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