Amazon.com Inc. (AMZN) is launching an ecommerce business to provide a wide range of goods and services to customers in the U.S., starting with its e-commerce website and app, a new report said Monday.
The company plans to launch Amazon.co.uk, a marketplace where customers can purchase Amazon goods and other online items, in the United Kingdom, according to a report by brokerage firm J.P. Morgan.
The site is expected to launch in early 2018.
Amazon is seeking to compete with e-tailers like Etsy Inc. ETX.
N and other e-retailers that sell physical goods and have had success in China.
But Amazon is struggling to attract consumers and has lost ground in online sales to Apple Inc. AAPL.
O and other technology giants, analysts say.
Amazon said the U, U.K. and Europe are the most attractive markets for its ecommerce operation, and the company plans a “significant investment” in these markets in the coming years, the report said.
Amazon also plans to expand its retail presence in the Middle East, where it has been expanding into retail.
The new business will be “very much focused on a consumer-facing segment of the business,” CEO Jeff Bezos told analysts at the company’s annual shareholder meeting last week.
“We’ll start expanding in the next few months and we’ll get to that,” he said.
The announcement follows a similar move by Amazon in 2014 to expand and invest in its online sales business in a bid to compete against larger online retailers like eBay Inc. EBAY.
O, whose stock is trading above $1,300 a share, according the Bloomberg index.
Amazon’s decision to open its eCommerce shop comes as it looks to expand beyond its core retail business.
Last year, the company expanded into a consumer marketplace, which it now calls ecommerce, as well as an online store, which is a service that allows customers to order goods online.
Amazon has also launched its own online video service.
Amazon.com shares rose nearly 9% on Monday.