Shopify partners with Chinese e-commerce giant JD.com. Now, US merchants can easily sell goods in the Chinese market. JD will distribute American goods via its channel for brands on Shopify.
It is one step ahead for JD.com as well. The internationalization effort of the company took another leap. It gave the following statement: “JD said it will open an “accelerated channel” for brands on Shopify to begin selling via its cross-border e-commerce site in China. Merchants can set up shop in three to four weeks rather than the typical 12 months that it takes foreign brands to begin selling in China.”
JD is responsible for price conversion for the company. It will also handle the logistics from the U.S. to China. With its own logistic arm, JD stands as a big competition to Alibaba. It has a wide network of delivery workers and warehouses.
The expansion goes two ways. Shopify will also work to ease the access of Chinese brands in the US. Chinese merchants can provide their brand to western customers.
Shopify tried targeting the Chinese market before. But, not much came into the hands. In the year 2020, it started accepting payments by Chinese digital wallets. Alipay is one of the popular digital wallets in the country. It is a product from Alibaba.
The success rate of the collaboration is high. It is a good opportunity for both parties. Merchants from the eastern and western sides of the globe can sell products to each other.
JD has more than 550 million annual active customers. Shopify gets a broad customer space to sell the product. With foreign brands and products, JD wants to give tough competition to Alibaba. It is trying to differentiate itself from its rival.
This expansion is a key focus for the company. The dream of capturing the American market is getting clearer. Last week, it opened its first retail store in the Netherlands.
It is also adding up to the target set by the Chinese government. It is going to increase national online sales by 44% between 2021 and 2023. JD and Alibaba are key players in the push.