Amazon closes its online sales site in China

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AMAZON CLOSES ITS SALES ONLINE IN CHINA

by Jeffrey Dastin, Cate Cadell and Kane Wu

SAN FRANCISCO / PEKIN / HONG KONG (Reuters) – Amazon announced its intention to close its Chinese market by July 18, the US online trading giant has decided to focus on its profitable business and its dematerialized services in the country the populated world.

The decision of the US group highlights its difficulties in the Chinese market in the face of strong local competitors. According to research firm iResearch Global, Tmall, the market of Alibaba Group Holding and JD.com, last year they held 82% of the e-commerce market in China.

An Amazon spokesman told Reuters Thursday that the group has begun to inform retailers of its intention to close its market and will no longer be able to offer their services on Amazon.cn

Sources familiar with the case told Reuters the day before Amazon made such a decision.

"We are working closely with our suppliers to ensure a smooth transition and continue to offer the best possible customer experience," the spokesman said in a statement.

"Sellers who want to continue selling on Amazon outside of China can do it through Amazon Global Selling."

According to sources, Chinese consumers will no longer be able to buy products from third-party retailers on Amazon in China, but will still have access to the group's market in the United States, Great Britain, Germany and Japan via their website. world.

AMAZON WAS NOT COMPETITIVE

"This (Amazon) is retreating because it is neither profitable nor growing," said Michael Pachter, an analyst at Wedbush Securities.

For Ker Zheng, marketing specialist at Azoya, an e-commerce consulting firm, Amazon has not had a major competitive advantage in China compared to its local competitors.

Unless you're looking for a very specific imported product that can't be found elsewhere, "it's no reason for a consumer to choose Amazon because they can't ship the goods as quickly as Tmall or JD." he has declared.

The US group will continue to invest and expand in China through the Amazon Global Store, Global Selling, Kindle readers and digital content, Amazon spokeswoman said. Amazon Web Services, the cloud computing division of the group that sells data storage and computing power to businesses, will also continue to operate in China.

Before Amazon, other western groups withdrew from China. In 2016 Walmart sold its Chinese online sales platform to JD.com in exchange for a stake in the Chinese group to focus again on its hard-core stores.

(Jeffrey Dastin in SAN FRANCISCO, Cate Cadell and Pei Li in PEKIN, Kane Wu in HONG KONG and Josh Horwitz and Brenda Goh in SHANGHAI, Claude Chendjou for the French service, edited by Benoît Van Overstraeten)

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