Sunday , January 17 2021

Amazon plans to close its market for Chinese consumers



Amazon founder and Washington Post poster Geoff Bezos speaks during a ceremony to open the new location of the media company.

Chip Somodevilla | Getty Images News Getty Images

Amazon founder and Washington Post poster Geoff Bezos speaks during a ceremony to open the new location of the media company.

Amazon is planning to close its business on the domestic market in China by mid-July, people familiar with the issue told Reuters on Wednesday, focusing efforts on its most profitable overseas-based businesses and cloud services in the world's most populous country.

Buyers in China will no longer be able to buy goods from other third-party traders in the country, but they will still be able to order from the United States, the United Kingdom, Denmark and Japan through the Amazon global store. Amazon expects to close the fulfillment centers and stop supporting domestic vendors in China over the next 90 days, one of the people said.

Consumers in China will still be able to buy remarkable e-readers and online content, sources said on condition of anonymity. Amazon Web Services, its cloud unit that sells data storage and computing power to businesses, will remain as well.

China's market of the company, which has procured goods from Chinese as well as foreign merchants, struggled to gain ground in the country's fierce competitive e-commerce market. The company iResearch Global, a consumer insight company, said Alibaba and JD.com's Tmall market held up 81.9% of the Chinese market last year.

Amazon, the world's largest online retailer, bought the local online shopping website Joyo.com in 2004 for $ 75 million and re-branded it as Amazon China in 2011.

Subscribe to YouTube's CNBC.

See: As Amazon paid a federal income tax of $ 0 in 2018


Source link