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 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.
Chilly temperatures and rain returns Friday and Saturday
The bulk of the rain looks to fall during the second part of the day Saturday and then start tapering off early Sunday . The temperature will reach its peak of 17C by around 1pm and remain so throughout the rest of the afternoon.
Amazon still has less than 1 percent market share in China, according to iResearch.
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.
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.