Amazon China is going to offer overseas products shipped directly to China as part of its strategy to boost sales during China's upcoming Single's Day (or Double 11) online shopping festival on November 11th. It will be competing with China's e-commerce giant Alibaba Group, which has started offering cross-border ecommerce and is expecting a sales of 50 billion yuan ($8.2 billion) on the day.
Supported by Amazon's global network
Amazon's extensive network globally is a key enabler. Six Amazon platforms in the US, Germany, Spain, France, the United Kingdom and Italy have officially opened for sales to Chinese consumers, who have shown growing appetite for overseas brands and products.
According to Amazon China, customers from China can choose from around 80 million items on the six overseas platforms. The purchased goods would be delivered to China within three days by an express delivery service after completing the necessary customs procedures.
Enabled by established local supply chain
Amazon has built 13 fulfillment centers which enables the company to deliver to 3,000 cities and counties across China. Over 100 cities will get same-day or next-day delivery. It has also set up four customer service centers in China. The new logistics and warehouse center in Shanghai Free Trade Zone will give Amazon price advantages and help shorten total delivery time for overseas purchase.
Cross-border ecommerce could be Amazon China's new growth opportunity in the competitive ecommerce market. After 10 years of operating in China, Amazon has yet to build a strong presence, due to the dominance of domestic players, like Alibaba and JD. With the competitive advantages in global supplier network and experience in supply chain and fulfillment, Amazon is on the right track to boost its market share in China.
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For more insight on Single's Day shopping festival: click here.
|Shirley Zhu leads IGD’s China research programme, and is based in Shanghai. Shirley has extensive research experience in the Chinese FMCG industry – feel free to contact her directly by email - at [email protected] - for more insight on China.|