Amazon.com says it will buy Joyo.com Limited, a British Virgin Islands Company, which operates the largest online retailers of books, music and videos in China. With a price tag of $75 million, the deal is Amazon’s ticket into the world’s largest and most complex market, which has 80 million online shoppers. But Amazon says it doesn’t expect the deal to have any immediate affect on this year’s earnings.
I can almost hear Jeff Bezos, Amazon’s eccentric founder and CEO, bursting out in his famed earthquake of a laugh. Again, Bezos has moved in line with his innovative streak. And he’s smart enough to realize the challenges ahead: a lack of distribution network and customers’ preference of paying by cash on delivery in China.
But he has a trick in his bag: Don’t chase the quick buck. And that’s so true if you want to do business in China.