Amazon makes progress in China


Amazon (NASDAQ:AMZN) says it has signed deals in China which will pave the way for it to open Amazon.com in a new free-trade zone in Shanghai.

The company plans to open a logistics warehouse in Shanghai to help it export goods from local producers.

What to watch: The initiative should eventually help Chinese buyers make purchases on Amazon and shift the company a bit closer to a direct-selling model. It's also a step in taking on Alibaba (Pending:BABA) - the "800-lb gorilla" in the region.

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Comments (20)
  • Pete P.
    , contributor
    Comments (1019) | Send Message
     
    Amazon moving to China and Alibaba moving to USA.
    20 Aug 2014, 08:07 AM Reply Like
  • Shaduc
    , contributor
    Comments (2952) | Send Message
     
    In 2004, Amazon moved to China a while back when it bought Joyo.com.

     

    http://bit.ly/1lhpOG0
    20 Aug 2014, 08:11 AM Reply Like
  • Gary J
    , contributor
    Comments (10645) | Send Message
     
    China as in Alibaba territory? That China? lol
    20 Aug 2014, 08:16 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33954) | Send Message
     
    Yes, that China, the China AMZN entered 10 years ago, unsuccessfully.
    20 Aug 2014, 08:48 AM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    China is a protected market but Amazon does find a way to open doors.
    20 Aug 2014, 11:09 AM Reply Like
  • Aries Wu
    , contributor
    Comments (405) | Send Message
     
    E-commerce in China isnt protected by the gov, ebay lose its market dominance because they do not know the market, so as amazon still a minor player after so many years. Even Chinese condemning alibaba isnt a local company because majority own by foreigners.
    20 Aug 2014, 11:57 AM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    You are completely wrong but that is OK with me.
    21 Aug 2014, 05:37 PM Reply Like
  • Aries Wu
    , contributor
    Comments (405) | Send Message
     
    Prove me wrong. If you know what happened for the past 10 years in China ecommerce arena, you will know the fundamental failure of western company is their uncompetitive business model, ebay cant compete so as amazon.
    24 Aug 2014, 01:47 AM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    Amazon will prove you wrong. WuWuWu
    24 Aug 2014, 08:54 AM Reply Like
  • Aries Wu
    , contributor
    Comments (405) | Send Message
     
    Hopefully I can wait to that day, a lot of investors buy into Jeff Bezos vision, investing in amazon make them look like super intelligent to buy into some evil plan to take out whole US retail business. Problem with amazon is that, it is still a retailer, that need to get from manufacturer to end user. Alibaba will cut that line and direct manufacturer to end user, no need amazon in between.
    25 Aug 2014, 12:19 PM Reply Like
  • Gary J
    , contributor
    Comments (10645) | Send Message
     
    "Problem with amazon is that, it is still a retailer, that need to get from manufacturer to end user. Alibaba will cut that line and direct manufacturer to end user, no need amazon in between."

     

    And from counterfeiter to end user even quicker!
    25 Aug 2014, 03:32 PM Reply Like
  • Pete P.
    , contributor
    Comments (1019) | Send Message
     
    The counterfeit issue is definitely something that needs to be addressed.

     

    It is a positive that businesses have direct relationships with consumers via Alibaba.

     

    Amazon is nothing to sneeze at. No matter how much you love Ali (and I think Ali will reach incredible heights) Amazon has done a great job building its business.
    26 Aug 2014, 01:55 PM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    Amazon will sell authentic brands versus fake goods from Alibaba.
    28 Aug 2014, 05:07 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    China will not allow amazon to set up shop successfully in there backyard, they will do it in ours. Google up 11 main. Did you know facebook isn't in china.
    20 Aug 2014, 12:07 PM Reply Like
  • poosh
    , contributor
    Comments (2) | Send Message
     
    Because the people behind the China Free Trade Zone needs to have success stories, they bring in Amazon. In order to make it successful they will make some leeways, but when it does become successful in 1 to 2 years, what will happen then?

     

    Sure physical and tangible goods could become part of commerce no problem, but when Amazon tries to bring cloud computing and other information service in, it's going to meet similar problems that Google met.
    20 Aug 2014, 10:17 PM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    Google didn't want their service to be censored and they went to Tiawan.
    21 Aug 2014, 05:41 PM Reply Like
  • poosh
    , contributor
    Comments (2) | Send Message
     
    The people behind free trade zone needs success stories, so they bring in Amazon. To make it successful, they make some leeways in terms of trade restrictions. When it does become successful in one or two years, what will happen then? There's not much controversy regarding physical and tangible goods, but when they try to bring in cloud computing and information services, there's going to be some difficulties.
    20 Aug 2014, 10:17 PM Reply Like
  • Aries Wu
    , contributor
    Comments (405) | Send Message
     
    Amazon already there for the past 10 years, I will be surprise if they get success.
    24 Aug 2014, 01:42 AM Reply Like
  • KingFishXX
    , contributor
    Comments (329) | Send Message
     
    Positive surprises tend to move the stock price higher. Amazon will be a huge success in China. It will take a few years depending how Chinese government acts to slow them down. Chinese market isn't open to foreigners.
    24 Aug 2014, 09:03 AM Reply Like
  • Aries Wu
    , contributor
    Comments (405) | Send Message
     
    Ebay total defeat, government was not involved. Amazon had been in China for past 10 years, it will still be nothing for the next decade. If you know the Chinese market well, which I highly doubt, you will know the fundamental problem is their business model. Chinese already building their CSN logistic network, so demand for amazon style of warehouses isnt that huge. Their ebook, kindle, or "we want to make money when people use our device, not when they buy our devices" campaign doesnt work out, chinese would not pay for services, simple as that.
    25 Aug 2014, 12:32 PM Reply Like
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