Amazon to close China app store in further retreat from world’s largest internet market

Amazon did not give a reason for the closure, but China’s internet service market has become increasingly difficult for foreign firms amid strict regulation and competition
The US firm ranked 12th among all e-commerce platforms in China, far behind the top three Taobao, JD.com and short video app Douyin, according to TMO Group

Amazon

Coco Fengin Beijing

Published: 8:00pm, 24 May 2023

Why you can trust SCMP

Amazon.com will close its official app store in China in July, the latest retreat from the Chinese market by the US tech giant following last year’s announcement that its Kindle e-book service would also shut.

An Amazon representative said the Amazon Appstore, launched in 2011 as an alternative to Google for Android phone users to install apps and games, will be “discontinued”. However, its official shopping site Amazon.cn will remain operational, as will other services such as Amazon Global Selling, Amazon Global Store and cloud unit Amazon Web Services (AWS).

The app store service will shut down on July 17, according to Chinese media The Paper, citing a Tuesday email from Amazon Appstore sent to users, which did not elaborate on the reasons for quitting the market. The Amazon Appstore could not be downloaded from its official Chinese site as of Tuesday.

China’s consultancy crackdown is scaring away investors, experts warn

Although Amazon did not provide a reason for the closure, China’s internet service market – the world’s largest with just over 1 billion users – has become increasingly difficult for foreign businesses amid Beijing’s tightened regulations regarding data and privacy protections, and fierce competition from local players.

However, Amazon’s Appstore, which was launched worldwide in 2011, can still be used in mainland China without a VPN, although banned US apps like Facebook and Twitter are not available.

LinkedIn, the Microsoft-owned platform for jobseekers and recruiters, said earlier this month that it was shuttering the app it launched in China less than two years ago, ending its remaining social media presence in the country as it cuts hundreds of jobs worldwide.

Amazon has been scaling down its China operations in recent years. Last year it announced it would close its Kindle e-book service in the country. Starting June 30 this year, domestic customers will not be able to buy new publications, but they can still download purchased volumes until June 30 next year, according to a notice on its site.

After expanding into China in 2004 via the US$75 million acquisition of local retailer Joyo.com, Amazon has struggled with its Chinese business operations, especially its flagship e-commerce and cloud operations. In 2019, the US firm stopped providing support for third-party merchants in the domestic marketplace.

People wait in line at the Amazon company booth during the China International Import Expo in Shanghai, November 7, 2022. Photo: EPA-EFE

Amazon ranked 12th in terms of popularity among all e-commerce platforms in China, far behind the top three Taobao, JD.com and short video app Douyin, according to a February report by digital commerce agency TMO Group. Taobao is owned by Alibaba Group Holding, the parent company of the South China Morning Post.

When it comes to cloud, AWS was the fifth largest provider in China with a share of 8.6 per cent in the second half of 2022, behind market leaders Alibaba and Huawei Technologies Co, accounting for 31.9 and 12.1 per cent, respectively, according to market research firm IDC.

Amid slowing online sales growth and a possible looming recession in the US, Amazon in January initiated its biggest-ever round of jobs cuts, ultimately affecting 18,000 workers around the globe.