You want to sell on JD or JD worldwide, this is the complete guide for Brands / Business to develop your business on this leading Cross border E-Commerce.
Guide to selling on JD Worldwide
- JD.com vs JD Worldwide
- Understand more about JD Worldwide
- Why you need to be on JD Worldwide
- How to open your independent store
- Entry requirements
- Store types
- Entry process
- Cost / investment
- How to choose your partner
Introduction JD , Jindong jd.com
JD.com is the second-largest B2C e-commerce marketplace in China. 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. (https://www.jd.hk/)
This part will be dedicated to how to sell on JD Worldwide.
1. JD.com vs JD Worldwide
JD.com, which stands for Jing Dong (京东), is the largest competitor of Tmall Global.
JD particularly adheres to the business philosophy of “Quality First” and “User First”.
Furthermore, JD is known for its excellent logistics network with 7 fulfilment centres, over 200 warehouses in China, and operates with more than 5.000 of its own delivery and pickup-stations.
JD.com China Nationwide Logistics Network
JD operates 3 sales models which are JD direct sales, JD marketplace and JD worldwide.
In the direct sales model, JD.com sources products directly from brands and suppliers, then sells them directly to customers through the company’s website and mobile channels.
JD can be characterised as China’s largest B2B2C (direct sales) market and dominates in home appliances and consumer electronics.
The direct sales model guarantees that Jingdong provides its users with faster and better consumer experience. It is open to well-established reputable brands and merchants with operations in China.
Product categories on JD hypermarket
Meanwhile, JD marketplace 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 fulfilment infrastructure, marketing and customer targeting services, financing, and other value-added services.
JD Worldwide is JD.com’s cross-border e-commerce platform, which enables Chinese customers to purchase products from other countries with the ease, and convenience that they expect from JD.com.
Similar to Tmall, JD Worldwide operates as an online mall where the organisation hosts foreign brands’ storefronts (or stores).
Currently, the company has opened several national and regional pavilions.
Europe Regional Pavilion on JD.com
2. Further about 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 regions around the world 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 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 dollars transfers are made for now.
3. Why being on JD Worldwide is better than opening your independent store?
Chinese consumers are not used to buying products on independent online stores but rather on e-commerce platforms. Therefore, the traffic is almost dominated by giant e-retailers such as Taobao, Tmall or JD. Many Chinese don’t even consider searching for products on Baidu.com, which is the number one search engine in the Mainland.
If you want to sell B2C in China, you must be on JD.com or other e-commerce marketplaces. Creating one’s own traffic is even more costly than being active on these platforms.
Due to Internet restrictions, even if the website is translated to Mandarin, Chinese e-consumers are unlikely to find the website.
Even if Chinese consumers can find the website, issues with after-sale support, refund or exchange schemes, and compatibility with Chinese payment methods (e.g. UnionPay) makes your direct selling from abroad nearly impossible.
4. Entry requirements of JD
The basic requirements to enter to JD.com /jd.hk are outlined below:
a. You need to be an established non-Chinese company (you need products and a track record, before you can start selling)
b. 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
c. You need to have a USD bank account
d. You should, preferably, not already launched your products in China
e. Further, you must also provide business registration documents, ID of the major shareholders and directors.
f. Chinese customer service must be provided and product details page should be written in Mandarin
g. Products must be dispatched within 72 hours after order placement
h. Product return centre 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 categories: mother and baby, health products, food, clothing, bags, and cosmetics.
5. Store types
Brand Flagship Store
- The products shall have the relevant trade mark registrations in 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 its trademark registration in 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
6. Entry process
The entry process for JD Worldwide differs somewhat from the JD Marketplace as you are required to seek contact with the Business Development Manager for the particular product category in which you wish to sell.
Therefore the 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 security deposit and platform service fee.
- After payment is received the shop status will be changed to ‘open’.
More about materials preparation here (In Chinese).
7. Cost of investment
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 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.
8. In Conclusion the right Partner
jd.com ingdong offers an alternative entry strategy from Tmall Global.
This alternative is especially suitable for merchants wishing to sell household appliances and consumer electronics.
However, a downside still is that creating a storefront on JD also requires significant capital.
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