Amazon Shutting Down Its Online Store

Amazon

Due to tough competition in China with JD and Alibaba, Amazon has planned to remove its online store from the country.

According to reports, the company has decided to concentrate more on other business to stand against two giants JD and Alibaba in China.

Till 18th July 2019, the customers of Amazon in China will be able to order imported goods, books in electronic format and the services in the cloud.

In a statement, the e-commerce online store clarified that it will not completely quit from the Chinese market. Amazon stated that customers who want to use their online portal can easily use its cross border sales platforms.

Amazon proclaimed that:

“Over the past few years, we have evolved our online retail business in China simply to focus more and more on cross-country sales, hence, we work hand-in-hand with our sellers to ensure smooth development. Hence, our commitment to China remains strong,”

According to reports, numerous local online portals including Tmall, which is being controlled by JD and Alibaba, gain 81.9% of market share.

Due to this, Amazon is finding difficulty in getting some market share while other companies like Chinese Pinduoduo are also giving tough competition to Amazon.

Back in 2004, Amazon bought a well-known online store named Joyo.com. The e-commerce store bought it for 75 million dollars and made it easy to debut its services in China.

In 2016, Amazon decided to launch Amazon Prime in the region with its free of charge program to attract more customers.

But, it did not help the company to gain some profit as it is unaware of consumers’ need in China.

The main edge of Amazon over its competitors is the availability of international products. Apparently, Alibaba is planning to develop new strategies for improving its cross border trading platforms, which will reduce Amazon’s sales by a margin.

However, the online store did not receive much success but it did triple its net profit in 2018 to 10,073 million dollars.

Moreover, the company’s turnover also increases by almost 31% and jumped to 232887 million dollars.