135th Day Of Lockdown

Maharashtra46826530552116476 Tamil Nadu2734602148154461 Andhra Pradesh1864611043541681 Karnataka151449746792804 Delhi1402321261164044 Uttar Pradesh104388605581857 West Bengal83800589621846 Telangana7095850814576 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
Business Companies 18 Apr 2019 Amazon to close dome ...

Amazon to close domestic marketplace business in China: sources

REUTERS
Published Apr 18, 2019, 8:35 am IST
Updated Apr 18, 2019, 8:35 am IST
Amazon shoppers in China will no longer be able to buy goods from third-party merchants in the country.
Amazon expects to close fulfilment centres and wind down support for domestic-selling merchants in China in the next 90 days.
 Amazon expects to close fulfilment centres and wind down support for domestic-selling merchants in China in the next 90 days.

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

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, Denmark and Japan via the firm’s global store. Amazon expects to close fulfilment centres and wind down support for domestic-selling merchants in China in the next 90 days, one of the people said.

 

The move underscores how entrenched, home-grown e-commerce rivals have made it difficult for Amazon’s marketplace to gain a foothold. Consumer insights firm iResearch Global said Alibaba Group Holding Ltd’s Tmall marketplace and JD.com Inc controlled 81.9 per cent of the Chinese market last year.

“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.

Amazon’s customers in China will still be able to purchase the firm’s Kindle e-readers and online content, said the sources, who spoke on condition of anonymity. Amazon Web Services, the company’s cloud computing unit that sells data storage and computing power to enterprises, will remain as well.

 

The 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.

US RETREAT

The withdrawal of the world’s largest online retailer - founded by the world’s richest person - comes amid a broader e-commerce slowdown in China. Alibaba in January reported its lowest 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. Wal-Mart Stores 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 US tech majors Netflix Inc, Facebook Inc and Alphabet Inc’s Google, Pachter said.

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

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

 

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT