New happy news for India as Amazon has decided to shut the shops in China and giving up on the Chinese market and decided to retreat from China.
From 18 July Amazon.cn will not be available Amazon said, “We are notifying sellers we will no longer operate a marketplace on Amazon.cn and we will no longer be providing seller services on Amazon.cn effective July 18.”
Another Company such as Walmart and eBay has already shut up in China. Walmart too struggled with its e-commerce operations there, before selling the division to JD.com in 2016. eBay exited China in 2006.
The company took this step as shares decrease below 1% and could not compete with the local market. The good news for India is that it is only a major market in Asia. Bloomberg says, “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 India reportedly had higher gross sales than Flipkart in the financial year 2018 According to iResearch report, Amazon India had higher gross sales than Flipkart in the financial year 2018. But new FDI rules for Flipkart and Amazon in India. Moreover, Mukesh Ambani entry into the market for increasing competition.