Latest in Tomorrow

Image credit: SIPA USA/PA Images

Amazon will close its Chinese platform for third-party sellers in July

The Chinese market is tough for Western competition.
207 Shares
Share
Tweet
Share
Save

Sponsored Links

SIPA USA/PA Images

Amazon is pulling the plug on its e-commerce marketplace for third-party sellers in China. The decision follows a long struggle by American e-commerce companies in the country, who have fallen behind China's faster shopping rivals.

According to a statement from Amazon, it will no longer operate its third-party online marketplace or provide seller services on Amazon.cn from July 18th. As such, domestic companies will no longer be able to sell products to Chinese consumers on the platform. However, the company did say it remains "committed to China" through its Amazon International Shopping platform, Amazon Global program, Kindle business and web services.

Further, The Wall Street Journal reports that Amazon is in merger talks with Chinese competitor, NetEase Inc's Kaola. A potential deal could see a stock-for-stock transaction, although neither company would comment on the status of those talks.

Amazon arrived in China in 2004 with the purchase of Joyo.com, where it was initially the largest vendor of books, music and video. But over time the platform came to be used predominantly for imported international goods, and despite its booming presence elsewhere, Amazon is now a very small player in China's e-commerce market. In quarter four 2018, the company accounted for just six percent of gross merchandise volume in the cross-border e-commerce market, while NetEase Kaola and Alibaba commanded 25 percent and 32 percent respectively.

While it would be feasible for Amazon to continue its operations there, getting ahead would mean spending big to unseat its competitors, or dropping prices even further -- evidently its executives have made the decision to quite while its ahead.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
207 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
Samsung asks users to be extra careful with the Galaxy Fold

Samsung asks users to be extra careful with the Galaxy Fold

View
Uber sues NYC over vehicle caps

Uber sues NYC over vehicle caps

View
Australia will help NASA go to the Moon and Mars

Australia will help NASA go to the Moon and Mars

View
Apple gets US approval for Mac Pro tariff exemptions

Apple gets US approval for Mac Pro tariff exemptions

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr