Shopify and JD.com reach strategic partnership to accelerate its expansion in China

According to foreign media reports, Canadian e-commerce giant Shopify has reached a strategic cooperation with JD.com to help American merchants sell goods in China, the world's second largest economy. This cooperation between the two e-commerce giants not only marks an important step for Shopify's expansion in China, but also marks another step in JD.com's internationalization efforts.

JD.com said it will open an “accelerated channel” for brands on Shopify to start selling through its cross-border e-commerce site in China. JD.com said foreign brands can open a store and start selling in three to four weeks instead of 12 months.

At the same time, JD.com will also handle the price conversion and logistics issues of Shopify platform merchants from the United States to China. As we all know, JD.com has its own logistics department and a large network of deliverymen and warehouses. Logistics is undoubtedly a major advantage of JD.com. In recent years, JD.com's internationalization has gradually accelerated. Recently, JD.com opened two new physical retail stores in the European market and used robots for distribution and delivery.

In addition, the two e-commerce giants also stated that Shopify and JD.com will "cooperate to simplify access and compliance for Chinese brands and merchants who want to reach consumers in Western markets." Both the vice president of Shopify and the president of JD.com's international business expressed their hope to use their own advantages to effectively simplify the complex process of cross-border e-commerce, help more Chinese and foreign brands release greater potential in the international market, and continue to promote the development of cross-border trade.

Shopify has already been involved in the Chinese market. In 2020, the company began allowing merchants to accept payments through Alipay. But the partnership with JD.com is its most important boost so far, as JD.com has more than 550 million active customers each year.

As one of the most popular independent websites, Shopify has achieved remarkable results in the past two years. In 2020, the company's total revenue was US$2.9295 billion, an increase of 86% over 2019. In 2021, Shopify's revenue GMV in each quarter also showed an upward trend. In order to share the risks of a single platform, many cross-border sellers have deployed independent websites. It is understood that Shopify is the preferred platform for most cross-border sellers' independent websites.

Shopify

JD.com

Strategic Cooperation