Amazon has confirmed it will be closing its marketplace service in China, meaning that customers in the country will no longer be able to purchase goods from Chinese merchants.
In a statement, Amazon said: “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. 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. Amazon’s commitment to China remains strong. We have built a solid foundation here in a number of successful businesses and we will continue to invest and grow in China”.
China’s online market is valued at around $2 trillion a year, yet Amazon despite being in the market for 15 years, has struggled against competition in the form of Alibaba-owned Tmall and JD.com.