With China being the #2 economy in the world, Amazon is eyeing Chinese market as their next big expasion plan. Amazon as the No. 1 Internet retailer, already generates $750 million yearly sales in China, and yet Amazon is going to increase 33.3% to $1 billion as soon as next year.
Amazon’s expansion strategy in China will be very straightforward, i.e., locate distribution centers and put its supply chains near the major cities. Marketing strategy would be to offer Chinese shoppers lots of free or reduced rate shipping. In its western China centers, Amazon can reduce shipping times down to 1~3 days. Amazon can therefore study existing sales in a given city and forecast the step-up in sales that fast and free shipping might generate.
China's eCommerce market is growing fast these days. Amazon started in China back in 2004 by acquiring e-book seller Joyo.com, will stand the benefit of this growth. However, there will be fierce competition coming from TaoBao.com, the biggest Chinese version of eBay.
I heard Amazon is hiring a lot of people these days, some of those are for the Joyo operation, beefing up supply chain and other technologies. It could be a good opportunity for fellow Chinese folks that want to jump onto this fast train during their job hunting. Plus, reaping the nice benefit of traveling to China or working in China also.