Amazon plans to close its online store in China, as it downsizes operations in the country.
The company faces tough competition from local rivals Alibaba and JD.com, but Chinese shoppers will still be able to order goods from Amazon's global store.
Amazon will focus its efforts on more lucrative businesses selling overseas goods and cloud services in China.
The firm expects to close fulfillment centers and wind down support for domestic-selling merchants in China in the next 90 days.
The move underscores how entrenched, home-grown e-commerce rivals have made it difficult for Amazon's marketplace to gain a foothold.
Consumer insights firm iResearch Global said Alibaba and JD.com controlled 82% of the Chinese market last year.
"They're pulling out because it's not profitable and not growing," said analyst Michael Pachter at Wedbush Securities.
Ker Zheng, marketing specialist at Shenzhen-based e-commerceconsultancy Azoya, said Amazon had no major competitive advantage in China over its domestic rivals.
Unless someone is searching for a very specific imported good that can't be found elsewhere, "there's no reason for a consumer to pick Amazon because they're not going to be able to ship things as fast as Alibaba or JD," he said.
