Amazon has decided to close its domestic marketplace in China amid intense competition from local rivals in one of the most lucrative e-commerce markets on the planet. The shutdown of the marketplace will mean that its customers in the country will no longer be able to buy goods from third-party merchants that were selling on Amazon.cn.
“We are working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible,” a spokesperson for the company confirmed to TechCrunch. The local marketplace is going to shut down on July 18th this year.
Chinese internet companies are known to fiercely compete with international companies looking for a piece of the pie. Uber was driven out of China for essentially the same reason and it seems that the dominant position of Alibaba and JD.com has forced Amazon to reconsider its strategy.
While Amazon.cn users won’t be able to purchase items from third-party sellers in the country, they will be able to order products from the United States, United Kingdom, Japan, and Germany through Amazon’s global store. They will also be able to purchase Amazon’s Kindle e-readers and online content. Amazon will continue to work to grow its other businesses in China which include its cloud-based services, Global Selling, and more.
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