- 18 August 2016
- Transport / Logistics Services
Amazon has seen 10 million cross border orders from customers in China, and plans to expand in cross border e-commerce through its global networks and resources. It is also planning to open a new luxury store in China, taking the e-commerce giant’s sales to China’s malls.
Amazon is one of the most successful Western companies in terms of trade into China, though it faces stiff competition from local rivals such as JD.com, Alibaba and NetEase that all trade in cross border e-commerce now.
“Global supply and logistic systems are unique advantages of Amazon. It aims to bridge connection between qualified goods and Chinese consumers,” said Zhang Wenyi, president of Amazon China.
Wenyi’s confidence stems from the fact that Amazon’s revenue from overseas goods bought by Chinese customers surged in the first half of 2016.
Customers can buy products ranging from German milk powders to Japanese cosmetics and US fashion items that are delivered within 2-3 days of making their orders.
Amazon China is holding a festival on Friday where a total of 50,000 international brands will participate including 1000 exclusive offers. The online giant has recently launched a luxury store to satisfy Chinese consumers’ hunger for luxury goods, and this sells products from Prada, Chanel and Jimmy Choo among a wide range of other top end brands.
Across the market as a whole, Chinese customers are expected to spend $86bn on overseas products through corss border e-commerce, a 48% year on year growth according to Analysys International, a Beijing based research company.
Cross border e-commerce is a major market for Chinese companies, with the likes of Alibaba’s Tmail, JD.com, and startups such as Ymatou.com trading in goods from other countries. It is one of the fastest growing sectors in the Chinese e-commerce market.