Amazon is opening an innovation center for sellers in China to help them sell abroad as rivals Shein and Temu gain traction in Western markets. The South China Morning Post newspaper reported the news and explained that when Amazon began cracking down on fake reviews in 2021 and closed 3,000 online merchant accounts, sellers in China suffered a “major blow” (the newspaper didn’t say so, but perhaps that helped give sellers the incentive to look for alternative platforms).
Amazon held a four-day event in China this week where it announced the new innovation center and other initiatives, according to Yahoo Finance. Chinese sellers will gain access to Amazon’s supply chain, giving them access to its warehousing, distribution, and couriers.
Other initiatives reportedly include an upgrade to Amazon’s selling platforms and exploring the use of AI.
Yahoo Finance’s Brooke DiPalma also cited Amazon’s recent fee changes that will see a reduced referral fee for low-cost apparel products. (More details on the Amazon fee changes can be found on the December 5th EcommerceBytes Blog post.)
CNBC called this week’s Amazon event an annual conference for sellers in China that features Amazon top executives and typically attracts thousands of merchants from the region. “While Amazon no longer operates in China, the country has become a hotspot for businesses looking to market their products to Amazon’s global customer base,” it reported.
