Overseas Purchase Or Withdrawal Of China'S Amazon Pays A "Slow Price"

International Electricity giant may pay the price for China's "slow".

In the afternoon of April 17th, there was news that "Amazon will announce its withdrawal from China this week. The final announcement time has not yet been determined, and the exact time is to be determined.

In the future, Amazon will retain only two businesses in China, one is Kindle, the other two is cross-border trade, and other businesses will be completely abolished.

To be exact, it should be: Amazon's main business e-commerce will be withdrawn from China.

The news was confirmed to Amazon China, and no reply has been received as of press time.

Analysts believe that if the news is true, it is not surprising that the operation of Amazon China is subject to the headquarters of the United States, the pace of response to the Chinese market has been relatively slow, and exit the market is also expected.

Business sector "storage or discarding" into doubt

According to Amazon China official website information: at present, the core strategic business of Amazon's layout in China includes: cross-border e-commerce based on Amazon's overseas purchase and Amazon's global open shop; Amazon reading covering paper books, Kindle e-book readers and e-books; four parts of Amazon's logistics operation and Amazon's cloud computing service (AWS).

If the media's "only two businesses in China are retained, one is Kindle and two is cross border trade", the accuracy is true. This means that the abolition of Amazon China not only includes the "Amazon China Sea outsourcing" business, which is cross-border e-commerce import business, but also includes logistics and cloud computing (AWS).

There are indications that Amazon's "overseas stores", cloud computing and logistics businesses are still operating normally.

In April 17th, Amazon's global cross-border electric business park opened in Ningbo.

In April 10th, Amazon opened the world's "Hangzhou cross border electricity supplier park". In April 9th, AWS CloudFront was officially launched in China. Three new network service providers, POP, Point Of Presence, were located in Beijing, Shanghai and central Wei respectively. In April 13th, a graduating master student received an oral offer from the Amazon China FBA team on social media.

Or indirectly participate in the Chinese sea market.

Amazon's offshore outsourcing business has been in a "marginalized" position in the market competition in recent years.

According to Analysys data, in the 2 quarter of 2018, the proportion of cross-border importing retail electricity suppliers accounted for about 5.9%.

Tmall international accounted for 29.1%, NetEase koala 22.6%, Jingdong global purchase (now renamed "Jingdong sea hoarding") 13.7%.

From the perspective of the entire B2C business, the proportion of Amazon China is even more insignificant: according to AI media consulting data, Amazon China's market share in the domestic B2C market is less than 1.2% in the first half of 2018.

The data show that Tmall and Jingdong occupy 83.8% of the B2C network retail platform market share, leading edge continues to be stable.

Vip.com and suning.com continued to stabilize in the second tier respectively, with a share of 5.7% and 3.7% respectively.

Recently, as a result of a cooperative rumor, the future of the Amazon's China Sea is going to be a topic of concern.

Two months ago, the media had heard that Amazon China's overseas purchase business will cooperate with NetEase koala.

The news said that the two sides signed a contract at the end of 2018 or took the form of stock exchange, which lasted for several months and was initiated and promoted by NetEase koala.

The message stressed that Amazon is a strong big company, not a pure buyer or a seller's identity, so both sides have experienced all the difficulties that can arise in business negotiations.

At that time, NetEase koalas and Amazon China executives responded by saying "no comment". In April 17th, they asked NetEase Cora responsible person again and responded: "no comment."

He Guangfeng, an investment industry analyst, said that according to the information, Amazon could spin off Amazon's China business and hand it to NetEase koala. Amazon will hold shares in NetEase koala and get the proceeds from NetEase koala's operation in Amazon China.

This means that Amazon is optimistic about China's business, but it can't get a good operation result. It hopes to be operated by companies that are better at it.

A cross-border electricity supplier with anonymity said: "cooperation with NetEase koala is an option for Amazon China to buy overseas, completely withdraw from the first line competition, continue to participate in the Chinese market from the capital level, and take the advantage of its global supply chain as the NetEase Kola energy."

Reflection arcs of international giants

In 2014, Amazon China formally launched Amazon's overseas shopping store. At present, consumers can buy more than 20 million of the products from Amazon's us, UK, Japan and Germany websites.

Commodities are sent directly to Chinese consumers from overseas operations centers through Amazon's global logistics system.

Amazon Prime membership service was launched in China in October 2016.

Analysts believe that even if Amazon's overseas purchase and withdrawal from China is true, it is not surprising.

The head of a cross-border electric business enterprise told the Beijing daily news reporter: "it is expected.

Amazon, which is a big international company, is not in touch with China and its headquarters are in the US, so its response is slow.

Amazon's performance in China has been step-by-step.

In 2004, Amazon acquired excellence.

More than a year after the completion of the acquisition, Amazon's database system began to replace the previous system of the excellent network, which took three years.

In 2007, excellence was renamed "Amazon".

In 2011, it was renamed "Amazon China" again. It took seven years to erase the mark of excellence.

Wang Jian, director of University of International Business and Economics and director of the international business center, said: "if the rumors are true, it is logical.

It's better to switch off directly than to lose money. "

Wang Jian thinks that Amazon's China offshore B2C business is likely to fail like eBay's business in China.

"Their adaptability and competitiveness in China are relatively poor."

Wang Jian also mentioned that Amazon's operation in China is subject to the US headquarters and cannot be changed according to the Chinese market.