Big investments in China pushed Amazon’s international business into an operating loss in the past quarter as the US online retailer moved to catch up with local rivals such as Alibaba and 360 buy.
Amazon reported a net loss of $60m in its international business in the quarter to March 31, which it attributed in part to capital spending on warehouses and efforts to broaden its product selection while keeping prices low in China.
Its North American business generated operating income of $562m in the same period, a sign of the role it plays in subsidising overseas expansion, even though Amazon continues to invest in the US and Canada.
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