Amazon has set its sights on JD.com's 600 million users

Author | Liu Baodan

Editor | Huang Yu

After more than twenty years of development in the e-commerce industry, the two largest self-operated platforms in the world, Amazon and JD.com, have finally come together.

Recently, JD.com and Amazon Global Store jointly announced the official opening of the "Amazon Global Official Flagship Store" on JD.com. This means that consumers can directly purchase cross-border goods provided by Amazon on the JD.com platform.

So far, Amazon, Walmart, and Lotte have all opened overseas official flagship stores on the global purchase platform.

In fact, the partnership between JD.com and Amazon has long been in the making.

In July of this year, Amazon Global Store announced that its overseas official flagship store would settle on JD.com, entering a trial operation phase. According to sources familiar with the matter, this attempt has achieved good results, especially during the recently concluded Double Eleven shopping festival, where the number of fans for Amazon's overseas official flagship store showed double-digit growth, indicating a positive momentum.

After more than three months of adjustment, Amazon's store has officially opened. Industry analysts believe this is a mutually beneficial cooperation that allows both parties to achieve their business goals.

In recent years, Amazon's business development in China has not been smooth, with the Kindle e-bookstore and app store being shut down one after another, and news of layoffs emerging in April this year. For Amazon, collaborating with domestic e-commerce platforms is a wise move to continue advancing its global purchasing business.

Zhang Zhouping, Executive Dean of Bense Think Tank, believes that Amazon Global Store seeks more market opportunities and space in the domestic e-commerce market, benefiting from JD.com's user base and logistics distribution system. At the same time, Amazon Global Store can enrich JD.com's demand for categories and overseas products.

According to Wall Street Insights, Amazon's first official flagship store in the Chinese market is located on JD.com, based on two main considerations:

First, JD.com has about 600 million active users who have high demands for quality and service, as well as strong purchasing power and brand loyalty, which aligns well with the positioning of Amazon Global Store. Amazon aims to enhance its penetration and brand influence in the Chinese market through this partnership.

Second, Amazon values JD.com's quality and service guarantees. For example, JD.com currently offers over 200 basic services addressing consumer pain points and has gradually established the largest customer service team in terms of service and technology in the industry.

As JD.com's one-stop consumption platform for cross-border imports, JD Global Purchase officially launched in 2015. At that time, Liu Qiangdong believed that Chinese people often shopped while traveling with large suitcases, and now, in the era of cross-border e-commerce, this business should be developed.

In terms of model, JD Global Purchase mainly adopts a self-operated + POP model. The self-operated model involves JD.com independently purchasing goods, supported by professional service companies within the bonded area; the platform model introduces overseas brand products through cross-border e-commerce, with the sales entity being overseas companies directly.

Currently, JD Global Purchase has established three direct procurement centers in Europe, Japan, and South Korea, and has built a vast JD self-operated buyer network globally, attracting over ten million products from more than 100 countries and regions, with 80% of self-operated hot-selling products achieving next-day delivery The domestic e-commerce sector is currently undergoing a fierce reshuffle. Since Liu Qiangdong's return, JD.com has implemented a series of countermeasures and has stabilized its fundamental position. According to the third-quarter financial report, JD.com achieved revenue of 260.4 billion yuan, a year-on-year increase of 5.1%, with an operating profit of 12 billion yuan, up 29.5%, both exceeding market expectations.

However, to maintain competitiveness continuously, it is necessary to keep seeking incremental space. In this context, exploring JD Global Purchase, which has been in development for a long time, is expected to play a more significant role.

It is reported that after the official opening of JD's Amazon overseas flagship store, consumers will have access to 400,000 globally popular products from Amazon Global Store, covering over 12,000 international brands across all categories, including health, digital, beauty, home, toys, and outdoor.

According to Wall Street News, the "Amazon Global Shopping Season for Black Friday" will launch on JD.com on November 21, with discounts on a vast array of imported goods as low as 30%. From the official opening until the end of 2024, JD's Amazon overseas flagship store will offer limited-time, zero-threshold free shipping promotions.

In terms of timeliness, consumers can enjoy free shipping on single items throughout the store, with products shipped via Amazon Global Store's international direct mail or Amazon Global Store's Ningbo bonded warehouse, with delivery in as fast as 2 days.

This is just the beginning. Wall Street News has learned that in the future, JD.com and Amazon Global Store will also explore cooperation in various aspects, including brand promotion, store and user operations.

By integrating WeChat Pay and connecting logistics to the Taobao system, JD.com's interconnected reach has now extended to Amazon. After experiencing a golden era of rapid growth, the internet industry is facing a new situation, and JD.com must unite all possible forces to strive for more chances of success