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Amazon Quits China Market

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231–240 of 316 posts

Re: Amazon Quits China Market

#231
I never thought I would see so much astroturfing on Hacker News, "read the article read the article".

The website's slogan is literally "Everything about China's Innovation".

It's biased and or unable to talk plainly about the market conditions in China, the rules are set by the government and they make sure Chinese companies always dominate.

Re: Amazon Quits China Market

#232

Earlier quoted context omitted.

Seriously, Alibaba's e-commerce side operates at a scale that makes Amazon's entire North America (if not global) operation look like a 7/11 store hosted on Geocities. Last year on Single Day alone, Alibaba handled over $30B in orders with 24 hours, and more impressively those are spread over 1,000,000,000 separate deliveries orders. It means it handled the ordering and payment processing of 11,574 orders per second…

Would not go as far as to say "delivered" in 48 hours. Shipping can be relatively slow during those promotional days and the app even shows delay warnings on the cart screen / checkout.

>Shipping can be quite slow

True, but remember "slow" means something quite different in China where same/next day delivery is very often expected in top tier big cities. So 3-5 days delivery is definitely considered slow, and during these crazy period you may see the glacier speed of one week delivery time :)

Re: Amazon Quits China Market

#233

Earlier quoted context omitted.

AWS in China is not run by AWS: "To provide the best experience for customers in China and to comply with China’s legal and regulatory requirements, AWS has collaborated with China local partners with proper telecom licenses for delivering cloud services. The service operator and provider for AWS China (Beijing) Region based out of Beijing and adjacent areas is Beijing Sinnet Technology Co., Ltd. (Sinnet), and the se…

It was when I used it in 2016. And they'd been there for years. And it was shit. See https://news.ycombinator.com/item?id=11209227

Yeah your company needs government licenses to do anything in China. That's nothing new. Don't blame Amazon for that.

Re: Amazon Quits China Market

#234
post #87
post #7

What's with these comments that Amazon couldn't win in China because they didn't play well by Chinese rules? The article paints a pretty compelling picture that the issue is that Amazon couldn't compete well with local companies. If they were that bad at competing, they wouldn't need conflict with the government to fail, failure would be a natural effect of being unable to keep up with local competition.

Probably a combination of a few things: 1) Western audience of HN that have only witnessed the dominance of Amazon so have a hard time imagining a better competitor. 2) Ongoing negativity towards china in this area. Put the two together, and China must be cheating for Amazon to not win. I think most people underestimate how difficult it is to compete on local turf (even without political handicaps). In fact it may ve…

More like home turf nuances.

China domestic shipping relies on very low paid workers working very long hours. On top of that, Amazon have already established their delivery infrastructure in a much more expensive environment. It would be tough for JD/Taobao to break in at this point.

Re: Amazon Quits China Market

#235

The discussion in this thread shows how blind people are about China's development. They are pointing fingers to the Chinese government partly because they simply cannot imagine how much better the China competitors are. The US do have some advantages in the IT industry, but that advantage is getting slimmer and slimmer. In fact, in so many ways, people in China are enjoying much better services from the internet com…

The China competitors are better because they are actively helped by the government while foreign companies are not, and in this case actively suppressed.

Competition only works when the market is fair. Perhaps Amazon could not make as good of an offering but their marketshare was 15% 10 years ago and China is a large, homogenous, and modernized population like the US which is perfect for Amazon's scale strategy. It's a hard sell to say that a trillion-dollar company does not have the resources and talent to do what the people in the next building can.

Re: Amazon Quits China Market

#236
post #45

Amazon has literally won everywhere else in the world. But in China they were slow at execution? Does this read right to you? Or maybe there is a regulatory angle which no one is talking about because...China.

> Amazon has literally won everywhere else in the world I've mentioned it in another comment, too, but Amazon is not present in my Eastern European country (Romania), where Alibaba beats them by a large margin (even though they're also not officially launched here). I've just done a quick search and it seems Amazon is not winning it in Russia either, nor in Ukraine, to say nothing of India. As such, to say that they…

I have heard from friends in Germany that EBay is much preferred to Amazon.de. Perhaps that isn’t the full truth, but something I found interesting.

Re: Amazon Quits China Market

#237

Earlier quoted context omitted.

It was when I used it in 2016. And they'd been there for years. And it was shit. See https://news.ycombinator.com/item?id=11209227

Yeah your company needs government licenses to do anything in China. That's nothing new. Don't blame Amazon for that.

I blame them for the China is an afterthought, screw the customer, we will deploy processes from abroad that don't work attitude.

Re: Amazon Quits China Market

#238
In online retail, shipping speed and selection are what entice customers. I'd argue that the UX and promotion landscape are moot past a certain point.

Fast shipping and selection comes down to infrastructure. China is spread out, this means each FC must carry more stock on average, and you need more FCs per person to reduce shipping time.

Markets like Japan and small EU countries are juicy targets for this reason (which is why you see so much investment there).

And then there's 'regulatory challenges'

Each FC requires large amount land, development, and employees. These types of projects require a high level of cooperation of the government to be worth the investment.

This doesn't pair well with a government that is notoriously unwelcoming to foreign business.

Re: Amazon Quits China Market

#239
post #45

Amazon has literally won everywhere else in the world. But in China they were slow at execution? Does this read right to you? Or maybe there is a regulatory angle which no one is talking about because...China.

> Amazon has literally won everywhere else in the world I've mentioned it in another comment, too, but Amazon is not present in my Eastern European country (Romania), where Alibaba beats them by a large margin (even though they're also not officially launched here). I've just done a quick search and it seems Amazon is not winning it in Russia either, nor in Ukraine, to say nothing of India. As such, to say that they…

I’m a Romanian. What do you mean Alibaba is beating Amazon in România?

I’d say that’s hyperbole. Neither of them are present here and if I were to guess judging by my own experience, I’d say that Amazon is still more popular.

Do you have hard numbers?

Of course neither of them hold a candle to the local eMag, but that’s only natural.

Re: Amazon Quits China Market

#240

Earlier quoted context omitted.

Seriously, Alibaba's e-commerce side operates at a scale that makes Amazon's entire North America (if not global) operation look like a 7/11 store hosted on Geocities. Last year on Single Day alone, Alibaba handled over $30B in orders with 24 hours, and more impressively those are spread over 1,000,000,000 separate deliveries orders. It means it handled the ordering and payment processing of 11,574 orders per second…

Would not go as far as to say "delivered" in 48 hours. Shipping can be relatively slow during those promotional days and the app even shows delay warnings on the cart screen / checkout.

Received my Singles Day purchases next day from jd.com though. Don't think the volume affected them. Can't say for Alibaba.
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