×
102 795
Fashion Jobs
TAPESTRY
Associate Manager, Site Merchandising Lifestyle
Permanent · New York
TAPESTRY
Manager, Materials Development & Sourcing
Permanent · New York
JOCKEY
Area Manager - Pacific Northwest
Permanent · Woodburn
MICHAEL KORS RETAIL INC
Part Time Sales Supervisor, Crabtree Valley Mall, Raleigh, nc
Permanent · Raleigh
MICHAEL KORS RETAIL INC
Full-Time Sales Supervisor Streets at Southpoint Mall; Durham, nc
Permanent · Durham
BANANA REPUBLIC
General Manager- Outlets of Maui
Permanent · Lahaina
BANANA REPUBLIC
General Manager- Colorado Mills
Permanent · Lakewood
NORDSTROM INC
2nd Shift Wrap Area Manager Warehouse - West Coast Omni Center, Riverside, ca
Permanent · Riverside
NORDSTROM
Asset Protection - Security Ambassador - Riverwalk Outlets Rack
Permanent · New Orleans
NORDSTROM
Asset Protection - Security Ambassador - Mission Valley Rack
Permanent · San Diego
NORDSTROM INC
Business Analyst -Inventory Integrity And Quality-Wcoc-Riverside, ca
Permanent · Riverside
OLD NAVY
Assistant General Manager, Merchandise - Regency Square
Permanent · Brandon
OLD NAVY
Asset Protection Agent - Warwick Mall
Permanent · Warwick
ADIDAS
Senior Manager Global Procurement
Permanent · Portland
ADIDAS
Senior Product Owner - Digital Observability
Permanent · Portland
ADIDAS
Manager Ctc Global Merchandising
Permanent · Carlsbad
ABERCROMBIE AND FITCH CO.
Financial Analyst, Inventory Control
Permanent · Columbus
ABERCROMBIE AND FITCH CO.
Enterprise Business Solutions Analyst
Permanent · Columbus
ABERCROMBIE AND FITCH CO.
Manager - Digital Product Management (Remote)
Permanent · Columbus
BLOOMINGDALE'S
Asset Protection Visual Security Officer, Part Time: Huntington
Permanent · Huntington Station
BLOOMINGDALE'S
Art Director - Photo
Permanent · New York
RALPH LAUREN
Associate Manager Merchandise
Permanent · Bluffton
By
Reuters API
Published
Apr 18, 2019
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Amazon to shutter Chinese marketplace business in face of steep local competition

By
Reuters API
Published
Apr 18, 2019

Amazon.com Inc plans to close its domestic marketplace business in China by mid-July, people familiar with the matter told Reuters on Wednesday, focusing efforts on its more lucrative businesses selling overseas goods and cloud services in the world’s most populous nation.


Amazon expects to close fulfillment centers and wind down its support for domestic-selling merchants in China in the next 90 days - Reuters


The move underscores how entrenched, home-grown e-commerce rivals have made it difficult for Amazon’s marketplace to gain traction in China. Consumer research firm iResearch Global said Alibaba Group Holding’s Tmall marketplace and JD.com controlled 82 percent of the Chinese e-commerce market last year.

An Amazon spokeswoman told Reuters on Thursday that it is notifying sellers that it will no longer operate a marketplace, nor provide seller services on Amazon.cn.

Sources familiar with its plans had told Reuters a day before that the company had planned to make such a move.

“We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible,” the spokeswoman said in a statement.

“Sellers interested in continuing to sell on Amazon outside of China are able to do so through Amazon Global Selling.”

The sources said that Amazon shoppers in China will no longer be able to buy goods from third-party merchants in the country, but they still will be able to order from the United States, Britain, Germany and Japan via the firm’s global store.

Amazon will wind down support for domestic-selling merchants in China in the next 90 days and review the impact on its fulfilment centres in the country, some of which it may close, one of the people said.

“They’re pulling out because it’s not profitable and not growing,” said analyst Michael Pachter at Wedbush Securities.

Ker Zheng, marketing specialist at Shenzhen-based e-commerce consultancy Azoya, said Amazon had no major competitive advantage in China over its domestic rivals.

Unless someone is searching for a very specific imported good that can’t be found elsewhere, “there’s no reason for a consumer to pick Amazon because they’re not going to be able to ship things as fast as Tmall or JD,” he said.

The Amazon spokeswoman said that the company would continue to invest and grow in China through its Amazon Global Store, Global Selling, Kindle e-readers and online content. Amazon Web Services, the company’s cloud computing unit that sells data storage and computing power to enterprises, will also remain.

U.S.-listed shares of Alibaba and JD.com rose 1 percent on Wednesday after Reuters first reported the move, before paring gains later in the day. Amazon’s shares closed flat.

E-COMMERCE SLOWDOWN

The withdrawal of the world’s largest online retailer - founded by Jeff Bezos, who later became the world’s richest person - comes amid a broader e-commerce slowdown in China. Alibaba in January reported its slowest quarterly earnings growth since 2016, while JD.com is responding to the changing business environment with staff cuts.

It also follows the Chinese e-commerce retreat of other big-name Western retailers. Walmart Inc sold its Chinese online shopping platform to JD.com in 2016 in return for a stake in JD.com to focus on its bricks-and-mortar stores.

Similarly, the country appears to factor less in the global aspirations of fellow U.S. tech majors Netflix Inc, Facebook Inc and Alphabet Inc’s Google, Wedbush Securities’ Pachter said.

Amazon bought Chinese online shopping website Joyo.com in 2004 for $75 million, rebranding the business in 2011 as Amazon China. But in a sign of Tmall’s dominance, Amazon opened an online store on the Alibaba site in 2015.

Amazon is still expanding aggressively in other countries, notably India, where it is contending with local rival Flipkart.

© Thomson Reuters 2021 All rights reserved.