Amazon responded that it will stop providing seller services to third-party sellers on Amazon's China website on July 18, 2019. Now that the e-commerce environment has accumulated competition, Amazon is justifiable to withdraw.
Is Amazon going to quit China
In addition, Amazon said that sellers affected by the adjustment who want to continue to cooperate with Amazon and expand the global market can contact Amazon's global store team for help. 'Amazon has always made a long-term commitment to the Chinese market. On the basis of the existing good business, we will continue to invest in and vigorously promote the steady development of various businesses in China, including Amazon offshore outsourcing, Amazon global stores, Kindle and Amazon cloud computing. 'Amazon wrote in a statement.
Amazon's closure of China's local e-commerce business means that Chinese consumers can't buy products from third-party sellers on Amazon platform in the future, but they can still buy products from the United States, Britain, Denmark, Japan and other places through Amazon's overseas shopping platform.
Earlier in the day, the reporter called a number of Amazon third-party sellers, but the feedback was that they had not been informed by Amazon. A book seller who has worked with Amazon for seven to eight years said that the cooperation with Amazon has been very good, with an annual revenue of more than 1 million. "Except for the high points, everything else is very good.".
With the fierce competition in China's local e-commerce environment, it is difficult for Amazon to find a foothold in the Chinese market
However, a number of businesses have said that their sales performance on Amazon is not as good as tmall, Jingdong and other platforms. A third-party mobile phone shell seller pointed out that after six years of cooperation with Amazon, he is "a soy sauce maker on Amazon's local e-commerce platform and sells better all over the world.". It is understood that the global store belongs to Amazon e-commerce service, which aims to provide overseas services for Chinese sellers' goods. Through Amazon's outsourcing platform, Chinese sellers can introduce their products to other countries. For the end of cooperation with Amazon in the future, the company said it was "good at gathering and good at scattering".
Reuters has previously reported that China's domestic e-commerce environment is highly competitive, and it is difficult for Amazon to find a foothold in the Chinese market. According to a report by iResearch global, a consumer research company, the e-commerce businesses of tmall and Jingdong accounted for 81.9% of the Chinese market in 2018.
Amazon says it will not quit China
However, Amazon told reporters on April 18 that "it is clear that it will not withdraw from China.". At the same time, Amazon stressed that Amazon always has a long-term commitment to the Chinese market. 'on the basis of the existing good business, we will continue to invest in and vigorously promote the steady development of various businesses in China, including Amazon offshore outsourcing, Amazon global stores, Kindle and Amazon cloud computing. '
According to Amazon, since 2014, Amazon China has continued to focus on cross-border online shopping, creating a unique cross-border business model with the core of 'Amazon overseas outsourcing' and 'prime member service', which not only meets the growing demand of Chinese consumers for high-quality overseas authentic products, but also establishes Amazon's differentiation advantage in China's cross-border online shopping industry. In order to deepen this strategic transformation, 'we continue to make use of Amazon's global resources, optimize operation efficiency, improve customer experience, and promote the rapid development of overseas shopping business by concentrating resources. '