Amazon Gives Up in China
Amazon (NASDAQ:AMZN) will close its domestic marketplace in China in July, ending a tough 15-year battle against Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD) in the world’s most populous country. Amazon China will stay online, but the marketplace will only sell products from third-party merchants from other countries.
Amazon will also keep selling its Kindle e-readers, online content, and AWS (Amazon Web Services) cloud services in China. Amazon isn’t completely giving up on China, but its attempt to build a first-party marketplace — which requires it to take possession of chinese products and fulfill orders with its own logistics network — no longer seems worthwhile.