JD Worldwide, JD.com’s cross-border e-commerce platform, is the gateway for international brands to reach the Chinese market. It allows merchants to sell directly to Chinese consumers despite not having a physical presence in China. let’s see in detail the particularities of this platform, its importance for foreign brands, and how to enter and sell on the platform.
JD.com introduction and its financial results in 2020
JD.com(京东Jīngdōng) is a Chinese e-commerce company headquartered in Beijing. It is the second B2C online retailer in China after Alibaba’s Tmall. It is partly owned by Tencent, which has a 20% stake in the company. JD.com is an eCommerce platform that boasts an incredibly wide range of products that includes categories such as cosmetics, fresh food, clothing, and much more.
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The fastest-growing products in terms of sales are cosmetics, food, and electronic products. It offers millions of different items of thousands of brands from more than 170,000 retailers.
JD allows merchants to open virtual shop windows and is licensed to import food, drinks, clothing, and footwear directly from abroad. The company is equipped with the JD pay or WeChat Pay system as the only recognized payment system.
According to its financial results, JD.com’s net revenues for 2020 were 146.2 billion yuan (US$120.6 billion), an increase of 20.7% from 2019. JD.com’s annual active customer accounts increased by 24.8% to 387.4 million.
JD Operation sales models
JD operates 3 sales models which are:
- JD direct sales,
- JD marketplace
- JD worldwide.
The JD direct selling model
In the direct selling model, JD.com acquires products directly from brands and suppliers, then sells them directly to customers via its platform. The direct selling model ensures that Jingdong offers its users a better and faster consumer experience. It is open to established and trusted brands and merchants with operations in China.
The JD marketplace model
JD marketplace enables well-established, reliable third-party sellers to set up stores and sell products directly to customers.
The JD Worldwide model
JD Worldwide is JD.com’s cross-border e-commerce platform, which enables Chinese customers to purchase products from other countries. Similar to Tmall, JD Worldwide operates as an online shopping mall where the organization hosts showcases (or shops) of foreign brands.
Why is JD worldwide important for brands wanting to sell in China?
JD Worldwide is today the leading shopping platform for imported products in China
JD Worldwide, the multilingual cross-border global sales platform similar to Tmall Global, allows merchants to sell directly to Chinese consumers despite not having a physical presence in China.
On JD Worldwide, Chinese users have the opportunity to purchase high-quality foreign products. JD Worldwide provides global shipping and warehousing solutions, and products from all over the world are delivered to customers in China with ease. The efficiency of its services is guaranteed by the partnership between JD.Com’s logistics network and international logistics companies such as DHL, Australia Post, and YAMATO.
With cross-border e-commerce, foreign products can be sold in China without having to face the long and complex authorization procedure with the competent local authorities, which is mandatory for export and sale through traditional channels.
JD Worldwide is open to brands, franchisees, retailers, and traders that are legally registered outside China selling products that originate from outside China.
Since its launch, JD Worldwide has attracted nearly 20,000 brands, covering more than 100 countries and regions including the United States, Canada, South Korea, Japan, Australia, New Zealand, France, and Germany. Many companies have chosen JD Worldwide as their partner to enter the Chinese market, Walmart, Aptamil, Nestle, Philip, Braun, Centrum, Uniliver, DeLonghi, Swisse and P&G are examples.
How does JD Worldwide work?
JD Worldwide works very simply:
- Brands register to manage a shop on the platform,
- JD Worldwide connects your products to Chinese consumers,
- Your product is delivered to Chinese consumers via JD distribution services.
What are the best-selling categories, origin countries, and brands?
- According to company data, beauty, maternal & child and health supplements are the most popular imported categories for JD Worldwide’s consumers.
- Products from the U.S., Japan, and Australia were the top three best-selling origin countries in 2019.
- Aptamil, Mead Johnson, Schiff, Swisse, and Shiseido were among the best-selling brands. Top-ranked supermarket brands are also featured on JD Worldwide for Chinese customers, including Walmart, Rakuten, 24Shopping, Woolworths, Attend, Mannings, and Isetan.
What about JD Worldwide users?
JD.com has over 240 million registered users, 80% of whom are aged 18-45, and 65% have university degrees. Over 80% of all on-site transactions are also completed via mobile.
This makes the platform one of the most attractive e-commerce opportunities in the world, offering access to a young, educated, and digitally savvy consumer base.
What makes JD Worldwide different from other cross-border platforms？
JD pays great attention to product quality
- JD only accepts high-quality products on the platform and guarantees strict quality control.
- Thanks to JD’s big data dashboard, JD Worldwide buyers can always identify the most suitable foreign products to meet the demand of Chinese customers.
- JD Worldwide is in charge of testing new products and writing an analysis of their strengths and weaknesses before launching them online.
- JD Worldwide has zero tolerance for counterfeit products and imposes significant fines for those who violate its standards.
JD offers a transparent product journey
- All imported products then pass through bonded warehouses under the control of JD’s customs officers and quality control inspectors, ensuring that all product details are accurate and in line with import regulations.
- Using JD’s blockchain technology, JD Worldwide works with partner brands to showcase every step of the product journey to the end-user, ensuring customers are confident in transparency and quality control when making a purchase.
JD offers a dedicated online consulting service
- In addition, JD Worldwide offers a worry-free shopping experience, including a dedicated online consulting service, to guide customers through the process. In case customers need to return products for various reasons, pick-up services and a timely refund can be arranged.
How to sell on JD Worldwide?
JD Worldwide requirements for international brands:
- Brands must be ‘internationally established’ and ‘famous’ brands are given priority,
- They must be able to provide trademark registration documents, licensing agreements, and authorization to sell,
- A USD bank account is required for payment,
- Business registration documents and business/owner details,
- Product pages should be written in Mandarin,
- Products must be dispatched within 72 hours,
- Customers must be able to return their products to a Chinese address.
The JD Worldwide application process
- Contact a JD Worldwide Business Development Manager of your product category. The first step in setting up a seller account on JD Worldwide is contacting the Business Development Manager of your product category. In your email, you should express your interest in selling on the platform, then indicate which product category you wish to sell in.
- Provide all relevant documentation like store type, company information, trademark registration, and so on.
- Complete the JD Worldwide approval process (You’ll be emailed a link to register your application),
- Approval of the account by JD Worldwide (You’ll receive an email when you’re finally approved, which should be within 2-4 weeks of submitting your application),
- Fees payment (Once you have been approved, JD requires that you pay an initial deposit, of US$15000. JD.com also charges a yearly fee of US$1000, per store. And, a 2-8% commission based on the order value, for each sale)
- Set up your JD Worldwide store (Uploading inventory, adding images, creating product descriptions (written in Mandarin), building your profile).
What are the types of stores brands can open on JD Worldwide?
There are 5 stores types:
Brand Flagship Store
- The products shall have the relevant trademark registrations overseas.
- If Merchant is a brand owner, they shall provide the trade-mark registration certificate for their products.
- If Merchant is an exclusive authorized dealer, he shall provide the trademark registration certificate for the products and the letter of authorization for selling his products.
Outlet-Type Flagship Store
- Merchant shall have or have applied for a Class 35 trademark (the “Service Mark”) in overseas for its brand.
- If Merchant is the owner of the Service Mark, the Merchant shall also provide its trademark registration certificate.
- If Merchant is not the owner of the Service Mark, the Merchant shall provide the Service Mark and evidence of their exclusive authorization to use or operate a store on JD Worldwide Website using the Service Mark
- The products shall have their trademark registration overseas
- If Merchant is not the owner of the trademark of its products, he shall also provide evidence of his authorization to operate a store on the JD Worldwide platform.
- Evidence of product source, and invoice of the products purchased.
- The name of the shop shall not infringe on the legitimate rights of others.
- Special store types may sell products of up to two categories
Advertise your JD Worldwide store to increase sales
To increase sales on your JD Worldwide store, it’s essential to build an advertising strategy that targets your customers.
On JD Worldwide, you can use banner advertisements that can be specifically targeted to consumers interested in your product category.
However, international brands should also advertise their stores on other famous platforms in China, like Baidu, Wechat, Weibo, Douyin. Each of these platforms offers advertising that’ll reach a predominantly young and consumer-driven market.
GMA is your best partner to sell on JD worldwide
Gentlemen Marketing Agency is a Digital Marketing Agency that is expert in helping foreign companies to establish or strengthen their position in China.
Our services for JD Worldwide:
We will assist you in selecting the right cross-border platforms by providing audits and giving you the feedback you need.
- Store management
We will work on the commodity submission as well as the page optimization (image design, description, and design).
- Customer service
Customer service needs to be updated with all the service details and prices. We’ll help you to set up customer service for your Chinese customers.
We will help you with the platform promotion to increase your brand awareness and reputation on the Chinese market.
Read more about JD.com: