Amazon recently announced that it will establish an innovation center in Shenzhen, China, to bring more Chinese products to the global market and directly compete with Chinese cross-border e-commerce companies Temu and SHIEN.
This is one of Amazon's global store expansion projects in the Asia-Pacific region, and Shenzhen Qianhai is used as the location of the innovation center, providing sellers in the Asia-Pacific region with opportunities to drive e-commerce business innovation, digital operations and other developments.
This move will compete with Chinese cross-border e-commerce companies Temu and SHIEN, and also hopes to reduce the impact of the development of China's cross-border e-commerce.
Although Amazon has terminated many of its businesses in China, cross-border e-commerce remains an important development project for Amazon in the Chinese market. In particular, many Chinese businesses use Amazon's service platform to sell Chinese products to the European and American markets, and many of Amazon's top sellers are located in China.
In 2023, Chinese sellers accounted for 20% of the goods sold on Amazon's website, and the number of Chinese sellers with sales exceeding US$1000 million grew by 30%, which made Amazon pay more attention to the operation of China's cross-border e-commerce business.
However, companies including Alibaba are already actively helping Chinese sellers sell their products globally, and ByteDance is promoting livestreaming sales in Indonesia through TikTok short videos. Coupled with competition from Chinese cross-border e-commerce players like Temu and SHIEN, Amazon will undoubtedly face even greater competitive pressure.
