Amazon plans to shut down its e-commerce business in China

Inc To Shut China Online Store

Amazon plans to shut online store in China

The firm occupied just 0.6 percent of Chinese business-to-consumer online retail in the fourth quarter of 2018, with Alibaba's Tmall taking 61.5 percent, and JD.com 24.2 percent, according to China-based Internet consultancy Analysys.

The rumour that this might happen first started circulating when Reuters reported that Amazon was eyeing more lucrative businesses, such as imported goods and cloud services.

The company said it is working closely with sellers to ensure a smooth transition.

Amazon entered China in 2004, when it bought a local online book seller for $75 million.

Amazon said it is informing sellers that it will no longer operate a marketplace from July, but Chinese consumers will still be able to order products from Amazon's global store.

"Amazon's commitment to China remains strong", said the company. Amazon.com Inc.is concentrating on India and its competition, Flipkart.

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Amazon still has less than 1 percent market share in China, according to iResearch.

Alibaba's Tmall and JD.com are the biggest online e-commerce portals of China.

Bloomberg called the move the latest sign that Amazon, due to the difficulty competing with Chinese rivals, would focus its overseas attention on India's growing market. Amazon's shares closed flat. Since then, it's invested in warehouses, data centers, and programs to teach Chinese sellers how to get their goods to Amazon customers.

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

Global e-commerce giant Amazon has denied it is leaving China, after reports it was dropping third-party vendors from its Chinese platform sparked concerns it was preparing to exit the fiercely competitive market.

Nonetheless, the company said it still considers China a priority.

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