US retail giant Amazon is expecting a big boost in sales during this year's upcoming Black Friday shopping event. The company is reportedly banking on increased purchases overseas on its cross-border online platforms, specifically from Chinese consumers. The recent success of China's Double 11 shopping festival showcased the purchasing power of Chinese consumers, particularly for high-quality products from abroad.
Black Friday, which will fall on November 29, is one of the largest sales events of the year. However, it still pales in comparison to the Singles Day shopping festival in China. Nevertheless, the event is still a significant day for major online retailers both in Asia and North America.
On Thursday, Amazon officially kicked off its biggest-ever Black Friday promotion, touting thousands of offers on millions of products from its four major sites. This included promotions launched on Amazon's Japan, UK, Germany, and US websites. In preparation for the event, Amazon also revealed that it will be ramping up its logistics and delivery operations throughout its different markets.
According to the vice-president of Amazon China, Li Yanchuan, the company's revenues on its cross-border shopping platform has been seeing double-digit growth in the first three quarters of the year. The company's Amazon Global Store is becoming very popular with Chinese shoppers looking for imported products such as cosmetics, shoes, personal care, and clothing items.
Data gathered by the company shows increased activity on its cross-border e-commerce platform from China's third and fourth-tier cities. The lower-tier cities in China are experiencing the fastest growth rate this year. According to Amazon, the fastest-growing lower-tiered cities in China in terms of sales growth are Huaian in Jiangsu province, Fushun in Liaoning province, and Mudanjiang in Heilongjiang province.
Amazon has expressed confidence in the success of its business in China in the years to come given the increased interest of Chinese consumers on its cross-border platform. Confidence in the business is so high that the head of Amazon's cross-border e-commerce business, Somana Konganda, had mentioned that the company is willing to double down on its investments in China to expand its presence in the region.
Data from the Ministry of Commerce has shown a significant increase in retail imposts for the first three quarters of 2019. Import volumes via cross-border e-commerce orders had reportedly grown by 30 percent during the period. The increase in overall cross-border sales has been attributed to the growing demand for high-quality imported goods and the increasing income of citizens living in lower-tier cities around the country.
