Amazon Partners Up with Shanghai FTZ
Amazon seems to have had its fingers in all the pies over the last couple of months, boosting revenue with its click-and-collect Doddle plans, 3D Printed Products Store, and the latest shock takeover of video-streaming site Twitch. The company is also focusing its efforts on improving its delivery services, including introducing Sunday deliveries in 18 cities in the US.
Now the online retail giant is looking to step up its ten-year-strong presence in China with a partnership with the Shanghai FTZ (Free Trade Zone), which will celebrate its first birthday at the end of next month.
Amazon’s new China president, Doug Gurr, signed an MOU – a memorandum of understanding – with the Shanghai FTZ and SII (Shanghai Information Investment Inc), effectively sealing the deal on Tuesday last week.
Not only does the deal mean that millions of products from around the world will be offered directly to customers in China, but also the reverse is true, that products from small or medium enterprises in China can also be sold to customers around the world through Amazon.com.
An Amazon logistics and warehouse centre will be established in the free trade zone, to add to the ten existing warehouses the company owns in China, as well as a new cross-border e-commerce platform. This means that goods being imported into China via Amazon.com will come through this platform and warehouse.
Mr Gurr added that around 13,000 international products from the high-end brands of more than 25 countries will also be introduced, and a third of them will be exclusive to Amazon.
The whole deal should help Amazon compete with its two biggest China-based rivals: online direct sales company JD.com, and Alibaba, which handles more online transactions than eBay and Amazon.com combined.
And China isn’t the only country in Asia that Amazon is looking to expand in. The company announced last month that further funding of $2 billion will be going towards boosting growth in India.