Amazon.com Inc. will open a store on China’s e-commerce platform PinDuoDuo on Monday (November 25), according to people familiar with the matter, who said Amazon’s Multi-Store store will be purchased from overseas. The sign is how the US company’s China strategy is changing after closing its online store in China.
In July, Amazon closed its online store in China after finding it difficult to gain traction in the face of stiff competition from deep-rooted local rivals such as Ali Baba and JD.com.
The company said at the time that it would step up its efforts to sell overseas goods to Chinese buyers through its global platform. Amazon also has a Kindle store on Tmall.
Alibaba and JD.com have long dominated China’s e-commerce market, but the current establishment PinDuoDuo of only four years breaks the pattern.
PinDuoDuo attracts customers through big discounts and group-buying deals. Last week, PinDuoDuo reported a much-anticipated quarterly loss because of a large subsidy to compete with rivals.