Amazon is shutting its Chinese marketplace

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The Chinese will soon no longer be able to use Amazon to buy from local sellers, the company confirmed earlier.

The retail giant is slowly pulling out of the country, with its local sellers business being the first one to pay the price, so to speak. As of July, the Chinese will be able to use Amazon only to buy goods from international sellers. The company’s cloud business will continue to operate as usual in China, it was added.

The rumour that this might happen first started circulating when Reuters reported that Amazon was eyeing more lucrative businesses, such as imported goods and cloud services.

A spokesperson for the company told the BBC that it was "working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible".

The same source believes Amazon was actually pushed out of the local Chinese market by domestic players, such as Alibaba and JD.com.

Back in 2004, Amazon bought Joyo.com for $75 million, which sold books, music and videos at the time. It later rebranded into Amazon, but allegedly, it has ‘struggled’ to maintain ground with local competitors.

It also seems that Amazon will be looking to make up lost ground in India, where it has committed to spending $5.5 billion on e-commerce. There, too, it will have to compete with the locals. This time it’s going to be Flipkart.

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