JD Layout Amazon? Seller: A new round of internal competition is coming

2023-09-15
1507
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Author:Wu Shuai
Source: ennews

JD Accelerates Overseas Market Layout!

 

The rapid development of cross-border e-commerce has attracted a group of top domestic e-commerce sellers to layout the overseas e-commerce market, and JD is no exception. It is understood that in addition to vigorously expanding its independent shopping mall, JD.com is also quietly acquiring Amazon stores

 

JD.com Buys Amazon Store

 

Recently, industry insiders revealed that JD.com is searching for excellent Amazon stores and may acquire these stores in the future, possibly selling products made by JD.com on Amazon.

 

According to the seller, JD is looking to acquire an Amazon store as early asShopify sellers started before launching the "one-stop selection platform" JD Sourcing;The main categories of this acquisition are3C, outdoor, beauty, home and other long-lived categories, and the products of these stores must be ranked high in the sub categories.

 

Cross border e-commerce platform JD.com layout Amazon? Seller: A new round of internal competition is coming

 

From the development of the cross-border e-commerce market, JD's entry into the market is not accidental. stayIn 2020, due to the impact of the epidemic, the cross-border e-commerce market ushered in a shining moment, attracting many industry insiders to take a share. The houses at Shenzhen Bay 1 were all sold out by Amazon.

 

In fact, the news that JD wants to join Amazon was as early as this yearThe first signs appeared in July. At that time, a seller revealed that JD.com was expanding into the Amazon market,On its official recruitment website, it can be seen that Amazon is vigorously recruiting positions closely related to operations, procurement, product development, and cross-border e-commerceThe workplace is also located in Guangzhou, the hub of cross-border e-commerce.

 

Nowadays, industry insiders have revealed that JD is acquiring Amazon stores and will gradually list its own brand, namely Jingzao, in the future. It is not difficult to see JD's future and overseas market layout.

 

JD has adjusted its organizational structure and separated JD.com from JD.com, currently at the same level as JD.com Retail, "a seller revealed. JD's layout of overseas markets in this way is enough to demonstrate the importance it places on overseas markets.

 

From another perspective, JD has turned its attention to Amazon. If successful, it will definitely use its established logistics advantages to reduce its logistics costs. In addition, its strong supply chain advantages, combined with multiple factors,The price of JD's own products on Amazon is likely to affect existing sellers, and whether it will cause a price war remains to be verified.

 

Some sellers are concerned that JD's entry into Amazon may affect operations and sales. Some sellers indicate that:Will there be another price war in the future, and will the platform usher in a new round of internal competition

 

However, some sellers have also stated that some experienced sellers are not weak, especially those top e-commerce sellers who have a deep accumulation of funds and brand influence. It is not easy for JD to gain an advantage in competition solely through price wars.

 

Multiple attacks, JD.com accelerates overseas layout

 

In fact, in recent years, JD has made significant moves overseas. It is understood that in recent years, JD has vigorously deployed overseas,It not only landed on e-commerce platforms such as Wal Mart overseas, but also launched e-commerce and selection platforms independently or jointly,We have established overseas warehouses and logistics systems, covering Southeast Asia, Europe, North America, Africa and other regions in terms of geography.

 

According to public information, in recent years, JD.com has invested in Indonesian e-commerce platformsTokopedia and becoming the largest shareholder of Tiki, a Vietnamese e-commerce platform; Collaborating with Central Croup, a Thai retail group, to establish JD Central as an e-commerce joint venture; Launch selection platform JD Sourcing for Shopify sellers; At the same time, the e-commerce platform Joybuy.es has also been launched in Spain; Collaborate with logistics providers to build overseas warehouses and international transportation routes

 

It can be seen that although JD's overseas business reputation is not as well-known as its old rival Alibaba's AliExpress, JD's overseas layout is not lacking.

 

Cross border e-commerce platform JD.com layout Amazon? Seller: A new round of internal competition is coming

 

From the perspective of development speed, the potential of JD's overseas business cannot be underestimated. Relevant data display,JD Global Sales Cross border BusinessIn 2020, sales increased significantly year-on-year, reaching 251%.

 

However, compared to Alibaba's direct entry through AliExpress, JD's overseas expansion appears much more conservative, often choosing to cooperate with local retailers or logistics companies.

 

Not long ago, JD's cross-border e-commerce export platformJOYBUY announced that in order to help more Chinese enterprises expand cross-border business overseas, JOYBUY will upgrade to a cross-border B2B transaction and service platform.

 

JD RetailCEO Xin Lijun revealed that JD will continue to increase overseas investment and seek to develop international clients. In the next few years, JD will increase national investment that aligns with JD's strategy, including warehousing and logistics supply chain.

 

Although there are many layouts, currently there are still many gaps in JD's overseas layout. To catch up with Alibaba and even grow into a cross-border giant like Amazon, JD still has a long way to go in its overseas layout.

 

Amazon, JD's shortcut to the sea?

 

At present, whether in terms of the scale and coverage of overseas investment, JD still has some gaps compared to AlibabaJD's Traditional Advantage Projects——Logistics cannot be underestimated.

 

this yearIn May, JD Logistics went public. According to the financial report, in the first half of 2021, JD Logistics' total revenue reached 48.5 billion yuan, a year-on-year increase of 53.7%,Including external customer income26.5 billion yuan, accounting for 54.7% of total revenue, with a year-on-year increase of 109.6%.

 

Taking the Southeast Asian region that JD focuses on investing in as an example, JD Indonesia covers the local area483 cities and 6500 districts and counties, 85% of orders are delivered within 1 day; At the Thailand station, over 95% of orders in the Bangkok area can be delivered on the same day, and 85% of orders across the country can be delivered the next day.

 

Cross border e-commerce platform JD.com layout Amazon? Seller: A new round of internal competition is coming

 

But in the entire Southeast Asian region, JD.com invests inTokopedia and Tiki cannot be compared to Lazada in terms of popularity or size. This is still the case in Southeast Asia, where JD focuses on layout, while in Europe and North America, where investment is relatively low, JD's disadvantage is even more obvious.

 

From a practical perspective, the layout of JD's overseas market is not smooth sailing. Due to its late entry, JD's overseas business is often at a disadvantage in competition with Alibaba. And JD's proud domestic logistics system has also caused concern for many industry insiders. After all, deep cultivation involves not only initial and final logistics, but also various challenges such as warehousing technology and local transportation.

 

Nowadays, JD's acquisition of Amazon stores may be an attempt for the future——Rely on Amazon, Wal Mart and other leading platforms to develop cross-border business. Although this path has a clear ceiling, it can reduce a lot of initial investment. For JD's shallow overseas business, it is indeed a 'shortcut'.


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