Amazon Opens China Pop-up Store on Pinduoduo

By Ryan Gandolfo, November 26, 2019

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After pulling its Chinese domestic marketplace business earlier this year, Amazon is partnering up with e-commerce firm Pinduoduo by setting up a pop-up store on the Chinese platform. The Amazon online shop will run until the end of the year, offering consumers in China about 1,000 overseas products, according to South China Morning Post.

A statement by the Seattle-based e-commerce giant said, “The Amazon Global Store pop-up store on Pinduoduo provides customers with a curated selection of about 1,000 overseas products with competitive prices, authenticity guarantee and convenient shipping,” as cited by SCMP

Imported goods available from Amazon on the Pinduoduo app range from beauty products, clothing, electronics and more, with discounts on goods during Pinduoduo’s Black Friday sales event. 

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Amazon’s pop-up shop on Pinduoduo. Image via @余丰慧 /Weibo

Amazon’s cooperation with Pinduoduo highlights the US company’s strategy shift in the Middle Kingdom, increasing investments in the Amazon Global Store in China. The online store serves as a cross-border shopping business for Chinese consumers looking for products in popular importing countries such as the US, UK, Japan and Germany. Amazon Web Services (AWS) has also made inroads on the Chinese mainland, as the company noted that a Chinese hospital affiliated with Fudan University adopted AWS to reduce infrastructure costs and improve medical teaching and research, according to a company press release in October.     

Pinduoduo rose to e-commerce glory thanks in part to its group buying deals, which allows consumers to form ‘shopping teams’ to get lower prices for products on Pinduoduo’s platform. According to data compiled by New York-based firm Market Realist, Pinduoduo is expected to take 7.3% of China’s retail e-commerce sales this year, while Alibaba and JD.com are forecasted to capture 55.9% and 16.7% of the market, respectively.

After posting a disappointing earnings report last week, Pinduoduo’s value dropped by USD11 billion as the company tries to attract deep-pocketed shoppers from bigger cities, Reuters reports. Those losses were offset on Monday after reports of Amazon’s pop-up shop on Pinduoduo.

READ MORE: This Chinese City Has the Most Amazon Sellers in the World

[Cover image: Screengrab via Pinduoduo]

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