Amazon has found a new way to attract China-based sellers after Temu and Shein have proven to be strong competitors in e-commerce.
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Amazon to Open Innovation Hub Near Shenzhen
During a conference, Amazon unveiled its plans to open an "innovation center" in Qianhai, Shenzhen, the place that is often referred to as China's Silicon Valley. The company endorsed it as a way to "promote sellers in the Asia-Pacific region in product launch, brand building, and digitization."
The company also unveiled its five business strategies in China for 2024. Amazon emphasized that it will focus on brand building, simplifying global operations, strengthening the global supply chain, driving global expansion, and improving local services.
The upcoming Shenzhen center will be Amazon's first global store innovation hub in the Asia-Pacific region. To ensure success, resources from Amazon, experts, and third-party service providers will be integrated to promote diversified functions.
Amazon Targets Chinese Sellers for Global Expansion
Amazon revealed that in 2023, items sold by Chinese sellers on the site increased more than 20% year over year, while the number of Chinese merchants with sales over $10 million grew 30%. VP for Asia Global Selling, Cindy Tai, detailed that the center will be built on global innovation and local empowerment.
"Today, the cross-border e-commerce industry is increasingly becoming a new driving force for China's foreign trade, and it is also standing at an important time point from extensive development to intensive cultivation, and then to high-quality development," she added.
The move came at a perfect time after Temu and Shein became a strong market contender for merchants. Both platform is now a hit among Chinese merchants due to their offerings, giving Amazon good competition.
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