Amazon to downsize operations in China as Alibaba and strengthen hold

Amazon is downsizing its operations in China with plans to shut the online platform it hosts that allows shoppers to buy from local sellers.

The online giant has stated that it would no longer run the domestic marketplace from July this year, but added that Chinese shoppers will still be able to order goods from Amazon’s global store.

The move arrives as Amazon continues to face tough competition from rivals local to the region in Alibaba and

As first reported by Reuters, Amazon will shift its focus in the region to the more lucrative business of selling overseas goods and cloud services. It will continue to operate its cloud business in China, a system that hosts ‘swathes of the corporate world on its data servers.’

An Amazon spokesperson stated that it “was working closely with our sellers to ensure a smooth transition and to continue to deliver the best customer experience possible.”

China is currently the world’s second largest economy to the US and is poised to take the number one position within the next few years. Amazon appears to be looking to supplement its market loss with ‘huge investment in India.’

The retail giant has committed to spending $5.5bn on e-commerce in India, where it competes with the local rival Flipkart.

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