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

tom_mai78101

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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.

“I used to use Amazon a few years ago. Amazon was one of the first online shops in China and a lot of friends told me that the things from Amazon were much more trustable. That’s why I used it, ” Liao told CNBC. “Taobao and JD have more items now.”


Her shift in attitude underscores one of the major reasons why Amazon is thought to be struggling in China. The U.S. e-commerce giant now plans to close its domestic marketplace business in China.

“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.


Read more here. (CNBC)
 
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