Amazon is expanding its logistics services into mainland China and other major shipping hubs to reduce costs, as it seeks to expand into the cross-border e-commerce market. This would see it take on domestic market leader Alibaba Group in the global cross-border e-commerce market, which is projected to reach $1 trillion by 2020, according to data supplied by Accenture and AliResearch. Amazon’s logistics strategy puts it head-to-head with Alibaba Group, which has also been aggressively expanding its logistics subsidiary Cainiao.
Doug Gurr, president of Amazon China, has said the company was chasing areas where it has unique competitive advantages in satisfying local appetites for imported products. “We want to help Chinese customers gain easy access to high quality and authentic international products at fair prices around the world, and help sellers from China to grow their business globally,” he said.