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China: Amazon sets foot in Shanghai FTZ

Thursday 21 August 2014 14:25 CET | News

Amazon will launch a new store in the Shanghai Free Trade Zone (FTZ) due to less restrictive trade regulations in what concerns sales of products in China.

Additionally, the global retailer has signed a memorandum of cooperation to enable Chinese customers to buy products from its global supply chain and to let small and medium-sized enterprises in China export their products to customers in other countries.

On the other hand, Amazon’s expansion strategy cost the company USD 126 million net loss in Q2 2014, up from a loss of USD 7 million in the same period of 2013. The company also forecast an operating loss between USD 810 million and USD 410 million for Q3 2014, up from a USD 25 million loss in Q3 2013.

In March 2014, Amazon claimed it would strengthen regulation of its online sales channels and had closed down a third-party store after state media criticized it for selling fake cosmetics.


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Keywords: China, Amazon, FTZ, Shanghai, store, restrictive trade, regulations, ecommerce, online sales, retailer
Categories: Payments & Commerce
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Countries: World
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