BI Intelligence





This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.

Amazon China has started a new program, entitled “Next Generation Trade Link,” that aims to help Chinese manufacturers and merchants sell abroad, Digital Commerce 360 reports.

As a part of the program, Amazon Business will sell Chinese manufacturers’ products internationally, and Amazon will allow Chinese merchants to sell on its recently launched Australian marketplace.

Amazon also plans to build additional cross-border e-commerce-focused centers in China to help handle logistics, financing, and more. In order to help Chinese companies succeed in the program, Amazon will give them insights into the behaviors and interests of international shoppers, so they know how to best appeal to them.

Amazon has struggled in China, but facilitating the sales of Chinese companies may help it get more out of the valuable market. The Seattle-based e-commerce titan has found it difficult to catch on in China, leading to its minuscule 1% market share in the country’s online retail industry. Because Amazon has struggled to sell to Chinese consumers, it appears to be trying to sell Chinese goods to foreign consumers, which could boost its reputation in the region. Despite these issues, Amazon doesn’t appear to be giving up on its own efforts in China, as it recently listed hundreds of China-based jobs.

The retailer may do well to focus on both sides of cross-border e-commerce in China.China is projected to account for 41% of all cross-border e-commerce by 2021, and cross-border e-commerce’s growing value makes this a worthwhile target for Amazon. The US-China trade corridor is one of the biggest in the world; Amazon’s dominance of US e-commerce gives it the opportunity to take advantage of that, and is likely why Amazon accounted for 7.6% of Chinese cross-border e-commerce in Q2 2017. If Amazon can succeed in selling US goods to Chinese consumers, and Chinese goods to the rest of the world’s consumers, Amazon may be able to turn its standing in China around.

Stephanie Pandolph, research analyst for BI Intelligence, Business Insider's premium research service, has compiled several e-commerce snapshots, which together highlight the most notable emerging markets in various regions. In full, the report:

Explores the e-commerce industry in India, Southeast Asia, and Latin America.

Highlights the leading country in each region, as well as key e-commerce players there.

Outlines the challenges and opportunities each region faces.

Gives insight into how these emerging markets may shape the future of e-commerce.

Interested in getting the full report? Here are two ways to access it:

Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now Purchase & download the full report from our research store. >> Purchase & Download Now

See Also: