Amazon is making strategic moves to engage Chinese sellers in a bid to compete with low-cost online marketplaces like Temu and Shein, aiming to expand its affordable product offerings in the U.S. and beyond.
Amazon has been actively courting Chinese sellers, according to Nikkei Asia. The company held an event in Shenzhen, Guangdong province, in late July, where it expressed its support for online sellers’ efforts to penetrate the global market. This move comes as Amazon reevaluates China as a source of goods for selling outside the country, despite scaling back its consumer-oriented businesses in China in recent years.
Amazon’s Presence in China
Amazon ended its domestic e-commerce service in China in 2019 and recently discontinued its Kindle e-book service. Its business selling overseas products to Chinese consumers has not established a strong presence in the country. However, the e-commerce giant is now focusing on cultivating sellers in China to source goods for selling internationally.
Amazon’s Expansion in China
In a strategic move, Amazon opened new offices in the inland cities of Wuhan, Hubei province, and Zhengzhou, Henan province, this year. These offices aim to support sellers in nearby cities and surrounding areas, seeking to do new business with small and medium-sized sellers, including factories in rural areas.
During an earnings briefing on August 8, Amazon CEO Andy Jassy acknowledged that consumers continue to seek low-priced goods, reinforcing the company’s strategy to engage Chinese sellers to compete with low-cost online marketplaces.
Amazon’s move to engage Chinese sellers marks a significant strategic shift as the company aims to compete more effectively with low-cost online marketplaces like Temu and Shein. By focusing on cultivating sellers in China, Amazon seeks to expand its product offerings and reach a broader audience with affordable goods.
