Amazon ups investment in China online shopping site
BEIJING (Reuters) - Online retailer Amazon.com Inc. said on Tuesday it had increased its investment in Joyo.com, a leading online shopping platform in China, the U.S.-company's fastest growing market.
Loss-making Joyo has expanded rapidly in the three years since Amazon first invested in it, but it has taken that long for Joyo to raise its level of service to where Amazon feels comfortable adding its name to the logo.
"This team has made a bunch of fantastic improvements to the customer experience in terms of selection and pricing," Jeff Bezos, founder and chief executive of Amazon.com, told reporters, at an event marking the new Joyo Amazon brand.
Joyo has increased the number of products it sells 32-fold over the past 3 years, but the expansion has not helped the company turn a profit.
Amazon said its experience showed that it took 5-7 years to turn a profit in a new market, and that it was willing to wait as long as necessary in China due to the huge potential.
"We have the resources and the patience to invest for a long time," he said. "This is day one, nothing has really happened yet."
Amazon owns 100 percent of Joyo, but did not give a breakdown of the investment.
China is the world's second largest Internet market, trailing only the United States, and boosting domestic consumption is a priority of the government to shift the focus away from export-led growth.
"China is our fastest growing geography, and not by a little," said Bezos. "When you like the odds, you increase the investment," he said.
Joyo uses a fleet of bicycles to help deliver its products to customers from three warehouses in China.
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