Amazon is shutting down its China marketplace business. Here's why it has struggled

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Amazon said it will 'no longer operate a marketplace on Amazon.cn' and 'will no longer be providing seller services on Amazon.cn effective July 18.'

Queenie Liao, an office worker in Guangzhou, China, shops online several times a week. Alibaba's Taobao and JD.com are her go-to platforms, but it wasn't always that way.

"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 company said in a statement, referring to its Chinese-language site, according to the Financial Times. Amazon entered the Chinese market in 2004 through the acquisition of Joyo, a domestic online shopping market. Joyo was rebranded to Amazon China in 2011. It enjoyed success in the early days with market share of over 15 percent in 2011 to 2012, according to China-based analyst Choi Chun of iResearch. That has now plummeted to less than 1 percent, according to another China-based market research firm, Analysys.

The U.S. giant has also not been as aggressive on the marketing front as some of its rivals. Alibaba and JD both do huge sales promotions and big advertising campaigns on Nov.11 each year, known in China as Singles Day.

 

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Lebok

This is surprising. I would have thought JeffBezos would have been more aggressive in this space considering it's size. The article mentions 'The U.S. giant has also not been as aggressive on the marketing front as some of its rivals.' I wonder why this was. Possible MorA?

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