Amazon strikes deal in China to offer more imported goods

Amazon had signed an agreement with a free trade zone in Shanghai

Amazon.com is hoping to attract more consumers from China, with a new agreement that will let the US e-commerce company bring millions of products from its international sites to the country as imported goods.

The company's China business made the announcement on Wednesday, with the signing of an agreement to establish its own "cross-border e-commerce platform" in Shanghai's new free trade zone.

Amazon's imported goods will be shipped to and stored at the free trade zone, where the company plans to build a logistics and warehouse center, it said in a statement. In addition, the U.S. e-commerce giant wants to help local Chinese businesses export their goods to Amazon's international customers via the trade zone.

Although a big name in the U.S., Amazon is a smaller e-commerce player in China. In this year's first quarter, it had a 2.9 percent share of the country's business-to-consumer online retail market, trailing far behind Alibaba Group's Tmall.com site, which had 48.4 per cent share, according to research firm Analysys International.

Despite the small market share, the company has been in China for ten years, and already expanded its logistics so that it can deliver to 3000 cities and counties in the country.

China's e-commerce sector is crowded, and Amazon has struggled to stand out, said Vanessa Zeng, an analyst with Forrester Research. Domestic e-commerce sites from Alibaba Group have long dominated the market, but other local players such as JD.com have also managed to gain a major following through promotional deals, she added.

"Amazon's services are fine, but they haven't been different enough to attract more consumers," Zeng said.

That could change with the company's new effort to bring in more imported goods. Chinese consumers like to buy foreign products, with the expectation that they are of a better quality, Zeng said. But in Amazon's case, the company will have to price its imported products low enough, and ensure shipment is fast, otherwise Chinese consumers won't buy, she added.

"A lot of Chinese travel outside the country to buy foreign goods. So if Amazon can open up its inventory, then I think the company will be able to address some of the customer demand," Zeng said.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags amazon.come-commercegovernmentinternettrade

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?