Do you want to sell on JD or JD Worldwide? Being one of the biggest Cross-Border ECommerce Marketplaces, JD is an online marketplace you should have on your radar. The following post will provide you with crucial information from setting up your account to tips for managing your store and getting more sales. With this guide, you’ll be able to start selling on JD Worldwide in no time!
What is JD (Jd.com)
JD.com is the second-largest B2C e-commerce marketplace in China, with a 20.1% market share. While Tmall Global is getting a lot of attention from cross-border e-commerce companies, few are aware of JD’s own cross-border program: JD Worldwide. Tencent, Walmart, and Google are partners. The group has developed a warehousing and delivery infrastructure with supply chain technology.
JD in Numbers
As of 2023, the company operates more than 1400 warehouses across China. Its logistics network uses high-tech tools and in particular: autonomous vehicles. Since 2017, JD has grown rapidly with an increase in revenue of 32% between 2018 and 2019 and 47% from 2019 to 2020. In 2021, JD reported net revenue of RMB 951.6 billion (about US$149.3 billion) which is an increase of 27.6% from 2020.
Despite a net loss of around 4 billion yuan in 2020 linked to a decrease in government support due to the COVID-19 pandemic; JD remains today one of the e-Commerce giants in China. Additionally, the company ranked 46th on the 2022 FORTUNE Global 500 list released on the 3rd of August 2022, moving up 13 places from last year and making its debut among the Top 50 biggest listed companies in the world. Overall, selling on JD.com can be a great way to reach more consumers and grow your business.
JD has pre-provision for the sale of certain examples of products, such as household appliances. Indeed, when a Chinese consumer goes to a site, he often has a predefined idea of what he wants to buy, for example on the contrary: few Chinese people will buy food products that they find in their daily life on a platform of cross-border e-Commerce. On these platforms, certain criteria are expected, notably in terms of quality, scarcity, or even current trends that influence purchasing behavior.
What is JD Worldwide?
JD Worldwide is the cross-border e-Commerce extension of the JD.com Chinese marketplace. Its function is to enable the sale of online products from foreign companies. In 2018 Jingdong officially upgraded its “Jing Dong Global” to “Haitun Global”, and then in 2020, JD came back to JD Worldwide.
It is one of the biggest B2B2C Chinese markets, especially in the field of audio products, entertainment products as well as electronic products, and household appliances. Other big examples of popular product categories present on the website are:
- Fashion Products
- Personal Care Products
- Beauty Products
- Paper Products
- Fresh Food
- Pet Food and accessories etc.
JD Worldwide offers Chinese customers a user experience of exemplary ease and convenience. This is the reason why today Jing Dong has more than 301.8 million active customers per year and 1400+ warehouses and is China’s Second-Largest eCommerce marketplace.
On JD Worldwide, the majority of users belong to the Y and Z generation, mostly younger and well-informed consumers.
The platform is open to franchise brands, retailers, and legally registered Foreign (non-Chinese) brands that sell products to overseas companies and customers.
How to Sell on JD Worldwide?
The Different Sales Models of JD
JD operates 3 sales models which are JD direct sales, JD marketplace, and JD worldwide.
- The direct sales model: JD.com sources products directly from brands and suppliers and then sell them directly to customers through the company’s online stores and mobile channels. JD can be characterized as one of China’s largest B2B2C platforms and dominates in home appliances and consumer electronics. The direct sales model guarantees that Jingdong provides its users with a faster and better consumer experience. It is open to well-established, reputable brands and merchants with operations in China.
- JD marketplace: It enables well-established, reliable third-party sellers to set up stores and sell products directly to customers. Approved sellers may also use JD.com’s industry-leading fulfillment infrastructure, marketing, and customer targeting services, financing, and other value-added services.
- JD Worldwide: It is JD.com’s cross-border ECommerce platform, which enables Chinese customers to purchase products from foreign sellers with the ease, and convenience that they expect from JD.com. Similar to Tmall, Jing Dong Global operates as an online mall where the organization hosts foreign brands’ online stores.
Examples of Product Categories in Hypermarkets:
JD Worldwide also hosts several national and regional pavilions.
What are the Benefits of Selling on JD Worldwide?
JD Worldwide offers international merchants the ability to tap into the Chinese market even if they do not have a physical presence in China.
- JD Worldwide provides global shipping and warehousing solutions that ensure products from foreign merchants are delivered to the doorsteps of customers in China with ease thanks to its partnership with international logistics companies such as DHL, Australia Post, and YAMATO and its own nationwide logistics network.
- JD Worldwide is open to brands, franchisees, retailers, and traders that are legally registered outside China and selling products that originate from outside China.
- Payment is also a fairly easy process for a foreign seller, or at least for someone with a registered USD bank account. In fact, only US dollar transfers are made for now.
- Chinese consumers generally do not buy from independent stores on their own. JD is considered a springboard for brands, particularly in household appliances. Thanks to this robust platform, there is an alternative to Tmall Global for market entry, as being a Tmall Partner is quite pricey, especially for small and medium-sized enterprises.
- One of the main benefits for merchants is that thanks to JD it is possible to develop your e-Commerce export more easily due to the restrictions of the Chinese government. Indeed, even if your website is translated into Mandarin, going through a Chinese cross-Border e-Commerce platform will offer you much more visibility through promotion solutions on the site. As a freelancer, the chances of a Chinese stumbling across your site are unlikely.
- JD reduces the risk of problems related to sales support such as refunds, exchanges, logistics costs or even accounting with the different payment methods in China.
JD Tools and Features for Marketing Strategy
- Banner ads on the different pages of the website
- Pay-per-Click: this method consists of using sponsored links which are most often ads in the form of text, placed near the search results. The advertiser pays for each click of the Internet user.
- It is possible to find the most trendy products from famous brands based on the SEO referencing of the JD.com website.
- Promotions are displayed on the main page.
- There is a coupon system to have money on the site.
- There is a recommendations page.
Basic Requirements to Enter JD & JD Global
- You need to be an established non-Chinese company (you need products and a track record before you can start selling).
- You need to be a brand owner or at least license a brand. Thus, you must be able to provide trademark registration documents or licensing agreements.
- You need to have a USD bank account.
- Further, you must also provide business registration documents, the ID of the major shareholders and directors, and so on
- Chinese customer support representatives must be provided, and you should have proper product descriptions written in Mandarin with professional product images and all additional product details listed.
- Products must be dispatched within 72 hours after order placement.
- Product return centers must be available in Mainland China.
Furthermore, JD Worldwide targets well-known overseas brands, brand agents, or well-known retailers and B2C websites that have not yet entered the Chinese market in the following kinds of products: mother and baby, health products, food, clothing, bags, and cosmetics.
The Different Types of JD Stores
The Brand Flagship Store
- The products shall have the relevant trademark registrations overseas.
- If Merchant is a brand owner, he shall provide the trademark 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
- Merchants shall have or have applied for a Class 35 trademark (the “Service Mark”) overseas for their brand.
- If a 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 the legitimate rights of others.
- Special store types may sell products of up to two categories
JD Worldwide Application Process
The entry process for JD Worldwide differs somewhat from the JD Domestic Marketplace as you are required to seek contact with the JD Worldwide Business Development Manager for the particular product category in which you wish to sell.
JD worldwide company registration process will resemble the following:
- You must prepare all the documents which were aforementioned and send them to the relevant Business Development Manager.
- After an initial check, you will receive a registration link (you must closely follow the directions provided as the system is in Chinese).
- Approval process.
- After approval, you must pay the regular deposits and platform service fee.
- After payment is received the shop status will be changed to ‘open’.
More about materials preparation here (In Chinese).
Cost of investment when opening a store on JD
Once you have been approved, JD requires that you pay an initial deposit of US$15000. This is not a fee, but a refundable deposit.
In addition, JD.com also charges a yearly fee of US$1000, per store. And, a 2-8% commission fee based on the order value, for each sale. While this may change in the future, JD Worldwide is so far charging significantly less than Tmall Global and the commission rates are lower.
Opening an online store on JD Worldwide is a great way to start selling your products to Chinese consumers. It offers an alternative entry strategy from Tmall Global, that is also a bit cheaper. This alternative is especially suitable for merchants wishing to sell household appliances and consumer electronics. However, a downside is that creating a storefront on JD also requires significant capital.
The best way to start selling on Jing Dong is to create a reputation for your brand on the Chinese Internet and social media before you enter this marketplace. This way you will have a community that allows the company to have the first resources to finance advertising.
Subsequently, the platform can only simplify the customer experience around your company on a lot of points which will have cost a lot of time and money with a classic independent store. In addition, thanks to these different sales and store models, there is a wide choice in the way of distributing its products, which remains personal to the entrepreneur.
With the help of our guide, you can have your store up and running in no time! Have you started selling on JD Worldwide? What has been your experience so far? Let us know in the comments below.
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E-SHOP MANAGEMENT & CLIENTS ACQUISITION
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