Rumor: Amazon China to End Self-operated Home Appliance Sales

Ebrun.com, 6/25/14

According to multiple industry insiders, US e-commerce giant Amazon's China site, Z.cn, will soon shut down the company's self-operated home appliance sales and shift toward an open platform appliance model. Z.cn already contains a large number of household appliance listings supplied by third-parties, including washing machines, refrigerators, and air conditioners.

The closure is reportedly due to difficulties faced by Amazon in providing installation services for home appliances, leaving suppliers to arrange for product installation, with Amazon only able to take responsibility for product delivery. In addition, another insider attributed the closure to difficulties faced by Amazon in competing with local competitors JD.com (Nasdaq: JD) and Suning (002024.SZ), with Amazon's comparatively low sales volume making it difficult for the company to negotiate pricing with suppliers.

Keywords: e-commerce Internet Amazon home appliances B2C

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