Today’s #AshleyTalks is all about JD Worldwide, the second largest online mall in China. You ‘ll understand how its combined model of hypermarket and mall works. You’ll also learn about the three entry processes, some basic requirements, admission priorities and investment fees.
JingDong (JD) Worldwide (www.jd.hk) is the largest competitor of Tmall Global with China’s second largest online mall. Moreover, JD is China’s largest (direct sales) hypermarket, with a 54% market share. JD dominates in home appliances and consumer electronic goods. Direct-sourced foreign products are shown on JD’s domestic website (www.jd.com) and indicated by a special sign.
JD has seven fulfilment centres and 200 warehouses across China. Furthermore, it operates with more than 5,000 of its own delivery and pickup-stations. JD launched its cross-border website, JD Worldwide, in 2015. For its hypermarket model JD Worldwide purchases inventory from overseas companies and resells it to Chinese consumers. For its online mall model JD Worldwide hosts foreign brands’ flagship stores similar to Tmall Global. JD uses Tencent’s online payment escrow service, Tenpay, to complete transactions in US Dollars.
JD has three operating models;
1. Franchise Business Partner – brands open a storefront on JD Worldwide. JD is fully responsible for warehousing, delivery and customer service;
2. Licensing Business Partner – companies can set up their own store and handle all logistics, JD supervises customer service and invoicing
3. Self-Operation Partner – brands open a storefront on JD Worldwide and take care of warehousing and delivery themselves.
– A registered legal entity outside of Mainland China
– An overseas retail and trade license
– Own the brand or be an authorized distributor or franchiser
– Chinese customer service must be provided and product details pages should be written in Mandarin
– Products must be dispatched within 72 hours after order placement
– A product return centre must be available in Mainland China.
– Reputable overseas products
– Excellent operation team and infrastructure
– Reputable B2B/B2C online companies or experienced brand owners and retailers in e-commerce;
– The following categories are preferred: maternity and childcare, apparel and accessories, cosmetics and personal care, health supplements, food, bags, luggage, watches etc.
– Security Deposits: 10,000 USD or 15,000 USD, depending on the category of products
– Annual Platform Fee: 1,000 USD
– Commission Fee: 2%-10%, depending on the category of the product sold
In order to sell products or open a store on JD Worldwide, merchants should directly contact the category sales team at JD according to their product category. Their contact details can be found on JD Worldwide’s website. Although not required, it is strongly advised to use a reliable third party for business on JD Worldwide.
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