Shopify has partnered with JD.com in a bid to expand its presence in Asia.
E-commerce giant Shopify announced earlier today that it has partnered with JD.com, one of the leading e-commerce companies in China. This latest development will help US merchants to sell their products in China.
The deal will make it easier for JD.com to expand its presence beyond China and Asia. Brands on Shopify will start selling their products via its cross-border e-commerce site in China.
According to Shopify, its merchants can open up shops in three-to-four weeks instead of the typical 12 months that it takes foreign brands to begin selling in the world’s second-largest economy.
JD.com will be in charge of price conversion and logistics from the United States to China. The company’s logistics arm and its numerous warehouses across China will give it a competitive edge in terms of delivery and other activities.
The companies said they would work together to further simplify access and compliance for Chinese brands and merchants looking to reach consumers in Western markets.
This is not the first time Shopify is entering the Chinese market. In 2020, the e-commerce giant began allowing merchants to accept payment via AliPay, the payment app of Alibaba’s Ant Group.
The partnership with JD.com is one of Shopify’s biggest ever as JD.com has more than 550 million annual active customers. It is also an amazing deal for JD.com as the integration of foreign brands on its platform can help it differentiate from its rival Alibaba.
JD.com’s partnership with Shopify comes after the Chinese government set a target to increase national online retail sales by around 44% over the next three years. Alibaba and JD.com are expected to play a crucial role in the government’s expansion plans over the coming years.