Amazon China Powers Up With Cross-Border eCommerce
On August 20, Amazon announced a strategic cooperation with the Shanghai Free Trade Zone (SFTZ) and the Shanghai Information Investment Limited (SII) when the company just celebrated its 10th anniversary in China. The agreement ensures the direct delivery of millions of products from Amazon sites across the globe to Chinese customers and will allow small and medium-size Chinese enterprises to conveniently export their products to Amazon customers around the world.
With the already fierce competition in China’s eCommerce market ramping up, eCommerce players are scrambling to find ways to increase their competitiveness. After 10 years of operating in China, Amazon has found its new growth opportunity:cross-border eCommerce. The overabundance of middlemen in China’s traditional retail industry has driven up retail prices, especially for imports — so online retailing of imported goods via a large-scale eCommerce platform confers tremendous price advantages. Amazon aims to provide the best cross-border shopping experience for all of its customers — both in China and around the world. Amazon will invest and locate its cross-border eCommerce platform in the SFTZ and establish a logistics and warehouse center there;goods from Amazon’s overseas sites and vendors will enter China through the SFTZ. Amazon has a few key competitive advantages over other cross-border eCommerce vendors by offering: