Amazon is preparing to close a Chinese online store that caters to mainland consumers, according to people familiar with the matter.
Amazon’s other Chinese operations, such Amazon Web Services, Kindle e-books, and cross-border teams that help ship goods from Chinese merchants to customers abroad, will continue to operate, said the people, who asked not to be identified because the matter is private.
Pulling out of Chinese e-commerce represents a significant setback for the company and Chief Executive Officer Jeff Bezos, known for his willingness to weather losses to achieve long-term gains. (AMZN)Amazon has struggled to win customers from Alibaba Group Holding and JD.com even after investing in warehouses, data centers, and acquiring online book seller Joyo in 2004. The pullback is the latest sign that Amazon is ceding China so it can focus on India, where it stands a better chance of becoming a dominant player.
Amazon didn’t immediately respond to requests for comment.
News about the closing of its China store was reported earlier by Reuters.