Why is Amazon stopping the online store in China?
The company is making this decision as part of the process of reducing its activities in the country.
Customers from China’s online store will be able to buy products from local vendors.
Amazon said they will not offer internal sales service in China since July. However, Chinese customers can order products from Amazon or Global Store. Moreover, Amazon’s cloud business in China is said to be the same as before.
It is thought that the decision to bring back the Amazon retail business from the country in the face of stiff competition from China’s local rival Alibaba and JD.com.
However, Amazon said that the importance of selling foreign products and making cloud services relatively more profitable is mainly reducing the internal sales market in China. Especially the Amazon is the most economical of its Cloud Computing Division, which has a great impact on the corporate world through server service.
In an official statement, the BBC said, “We are working closely with vendors to ensure the process is done nicely and to ensure the best possible service to buyers.”
In 2004, Amazon purchased a local retailer, Music and Video retailer Joo.com for a video, music and video, for a total of seven billion US dollars. In 2007, its name was changed to Amazon.cn.
Customers entering this website after July 18 will only see the products selected in the Global Store, not the local product.