Amazon ceases operations in China

By 18 July Amazon will cease operation of its online store in China (Amazon.cn), which allowed Chinese consumers to purchase goods from local sellers.

The business was considered unprofitable due to strong competition from domestic rivals Tmall (Alibaba group) and JD.com, which alone control 82% of the local e-commerce market. Sellers interested in continuing to sell on Amazon outside China are able to do so through Amazon Global Selling.

The company owned by Jeff Bezos will however continue to run its other businesses in China, including Amazon Web Services and e-book Kindle, as well as cross-border operations which have proved very popular with Chinese customers.

According to figures published on the online statistics portal Statista, China is the world’s largest e-commerce market with a total of 722.4 million users who spend on average $899 each per year, making a total of $584 billion.

The number of users is expected to grow to 931.8 million by 2022 with annual per capita expenditure reaching $984.91, corresponding to total annual sales of $917.7 billion.