On April 17th, Amazon announces that it’s China marketplace business will be shut down from July 18th, 2019. “We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible,” the spokeswoman said in a statement. It means Amazon will quit the battle with Alibaba & JD.com in China. However, its Amazon Web Services (AWS), Kindle, Amazon Prime, and a few fulfillment centers are still supported.
Third-party sellers or merchants in the Chinese mainland can no longer operate their business on Amazon, while customers can still shop from the overseas market including America, England, Denmark, Japan, Germany, etc.
Even Amazon has promoted its online business in China in recent years, it doesn’t work well. It seems that Amazon has lost its major competitive advantage in China than its rivals. According to iResearch Global, Amazon only takes 0.6% of the China market share in 2018, while Alibaba & JD.com take 81.9%. And this has been going on for several years.
Amazon China, formerly known as joyo.com, is launched on Jan 3rd, 1999. This is the 20th year in China. But if it’s not profitable and growing, it’s reasonable to pull themselves out. The end of domestic online shopping service in China doesn’t equal to the end of its exploration in China. It allows them to centralize the resource and focus on other services, like AWS, import business, Amazon International, Kindle, Amazon Prime, etc. It’s said that Amazon is working with NetEase about merging its import business with Kaola. But both of them haven’t said anything about it. We believe the next step of Amazon will affect its business in the Chinese market to a great extent.
No matter what happens, Trackingmore will keep providing the best tracking solutions to empower all the merchants and benefit all the customers. Let’s look forward to the promising development of the eCommerce market both in China and the world.