Amazon shakes hands with its Chinese rivals

If you cannot beat them, join them. That's what US e-commerce company Amazon.com Inc must have thought when it decided to set up a virtual storefront in competitor Alibaba Group Holding's Tmall website.

It is no secret that Amazon has struggled to expand its business in the world's second-biggest economy, as Chinese consumers continue to make most of the online purchases through local e-marketplace channels like Tmall and Taobao.

"At this point in time, Amazon is not able to compete with Tmall and JD.com. Part of this is related to the fact that the United States headquarters is in charge of all decisions. But even if Amazon China had more autonomy, it will still find it difficult to compete with local players," said Will Tao, technology analyst at iResearch.