Amazon is shutting down its domestic e-commerce marketplace business in China that allows Chinese consumers to buy from Chinese merchants, after the difficulties encountered in competing with Alibaba and JD.com.
“We are notifying sellers we will no longer operate a marketplace on Amazon.cn and we will no longer be providing seller services on Amazon.cn effective July 18,” the US e-commerce company said in a statement.
Amazon said it will focus on “cross-border” selling to Chinese consumers, based on increased customer demand for products from abroad.
“Over the past few years, we have been evolving our China online retail business to increasingly emphasize cross-border sales, and in return we’ve seen very strong response from Chinese customers. Their demand for high-quality, authentic goods from around the world continues to grow rapidly, and given our global presence, Amazon is well-positioned to serve them,” the company added.
The closure of the store will affect some jobs in China, even though the company refused to say how many.
Customers in China will still be able to buy items from the United States, Germany, Japan, and the United Kingdom through Amazon’s global website.
Amazon’s cloud business will continue to operate in China.