Market Research Report on Failure Case Study: Amazon China

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Failure Case Study: Amazon China


A global e-commerce giant that failed as it could not adapt to the tastes and preferences of Chinese consumers.

Amazon entered China through the acquisition of, China’s largest online book-seller, in 2004.

With a market share of less than 1% even 15 years after its launch in the country, Amazon China failed to strike a chord with Chinese consumers and hence it decided to withdraw its online market place. Chinese consumers, already accustomed to free and rapid deliveries from local players, failed to see value in Amazon’s offerings.

The company also failed to offer convenient shopping experiences.


– Amazon’s strategy of bringing key aspects of the supply chain in-house led to escalation of operating costs.
– Price-sensitive Chinese consumers shunned Amazon’s system of charging for delivery. Amazon China lagged behind and Alibaba in terms of delivery speeds as well.
– Owing to their extensive distribution network, powered by several smaller local logistic firms, these two Chinese counterparts offer delivery within one day, sometimes within a few hours.
– Amazon’s Prime Day lacked the connection with consumers that Alibaba has been able to maintain.
– The company’s key decision-makers in the US failed to understand Chinese consumers, which led to its downfall in China.

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Ritesh Tiwari is the Founder of Research By Markets, a leading Market Research Reports Reseller trusted by Fortune listed companies for their requirements of Syndicated and Custom Market Research Reports. Ritesh has an overall experience of 18+ years in Recruitments, Sales and Operations. He has been associated with the Market Research industry for the past 7 years. He is an avid foodie as well as a huge football fan being a supporter of Manchester United (EPL) and FC Barcelona (La Liga). Get in touch with him via *Market Research News is a part of Research By Markets.