Amazon says it is curtailing business operations in China, the world's biggest retail market, after struggling against better entrenched local players for more than a decade.
The company announced recently that as of July 18, it will no longer provide services through its Chinese website, Amazon.cn. The decision means Amazon will stop selling goods from China-based vendors to domestic consumers on the portal.
Although it is moving out of the e-retail business in China, Amazon will continue with its cross-border business, bringing foreign brands and goods to China, the company said.
"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 said.
The announcement has raised questions about the extremely thin presence of foreign companies in internet-related businesses in China, while Chinese companies like Alibaba create market space for themselves across the world.
Amazon's market share in China has fallen from about 15 percent a decade ago to about 6 percent. Alibaba and another local company, jd.com, account for nearly 75 percent of the Chinese market. Online shopping site eBay earlier moved out of China as it could not make a profit.
Source : VOA