Amazon to Set Up Shop in the Shanghai Free Trade Zone
Amazon.com will be setting up shop in the Shanghai free trade zone as the company is taking advantage of the less stringent trade regulations in china in order to sell a wider range of products in China. the U.S. online retailer is showing intent to remamain in China but to increase its presence in the e-commerce market that is totally dominated by Alibaba and JD.com.
Amazon has already signed a memorandum of cooperation that will give Chinese customers access to products from its global supply chain and help small and medium sized enterprises to export their products to customers in China to other countries. Although Amazon has not released a time table on when their operations will begin in the free trade zone in which companies enjoy a more relaxed import and export regulations that the rest of the country.
Amazon is also pushing the use of its Amazon Web Service cloud computing business as the country is having its own Amazon Web Services region that will improve the speed of its services for its corporate customers. But due to persistent expansion has cost Amazon and left the company with a US$126 million loss for the second quarter up by US$ 7 million during the same period last year.
Amazon is now looking forward to work with its Shanghai partners to help them realize the opportunity of the development of cross border shopping experience not only for its Chinese customers but other customers globally. These will establish Shanghai and make it an international cross border e-commerce center.