The company's market share in the e-commerce sector is relatively small compared to Alibaba and JD.com.
https://www.asiatimes.com/2019/04/article/amazon-may-close-e-commerce-cloud-business/
Looking back
Amazon will likely announce the closure of its e-commerce and cloud businesses in China, Beijing Business Today reported.
The report stated that there is speculation that the U.S. tech giant has decided to close its main businesses in China, with the exception of Kindle and cross-border e-commerce, adding that the announcement will be made sometime this week. Amazon did not immediately respond to the newspapers' request for comment.
Currently, Amazon has four main business units in China: cross-border e-commerce, Amazon Read, logistics, and cloud computing services.
The news comes as no surprise, an industry source said. Amazon's market share in the Chinese e-commerce sector is relatively small compared to its competitors Alibaba and JD.com, and for cross-border e-commerce in China, Amazon had only a 5.9% share in the second quarter of 2018, while Tmall International accounted for 29.1%, NetEase Kaola 22.6%, and JD Global 13.7%.
Reasons
The main reason Amazon has not grown in China relative to other markets is the fierce competition from well-capitalized, modern companies with deep ties to the Chinese government.
In addition to competition, culture is a major barrier, and local companies have been able to read the market and consumers to develop solutions better suited to the market. This is very similar to what we have in Brazil.
Future
While shareholders complain that Amazon's global dominance will be hampered by the Chinese, the world's largest company is expected to explore other emerging markets such as Brazil. What we should expect to see here in Brazil in the coming years is the entry of Chinese companies offering their services to a consumer market very similar to their homeland: complex logistics, limited reach, and mobile connectivity.
