Two of the world's largest e-commerce players are joining hands. Major Chinese online retailer JD.com has formed a partnership with a Canadian company to help global brands tap into China's enormous appetite for imported goods and help Chinese merchants sell overseas.
The news is making waves in China. The first part of the deal will put the alliance in direct competition with the Chinese company. As of late, the nemesis has 35,000 international brands in its import business. Over 6,000 brands entered China via the platform.
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The existing brand onboarding process can take as long as a year to complete, but it has been done byJD for years. The fast track for brands to sell to the 500 million active buyers in China will be created by the company, often described as the Amazon of China. The platform will use tools like automated translation and price conversation to get sellers ready and will be flying goods via its fleet of cargo flights between the U.S. and China to start with.
The company intends to help brands market and sell in China. The company has a service for store owners of theshopifyshopify store owners have a service for store owners of theshopifyshopify store owners have a service for store owners of theshopifyshopify store owners have a service for store owners of theshopify store owners have a service for store owners of theshopify Once a product is available in the inventory of the Chinese e-commerce company, it will be sent to one of its overseas warehouses, where it will be listed on theshopify stores and sent to consumers via drop-shipping.
The other part of the deal is to bring Chinese goods overseas via the direct-to-consumer solution of Shopify. Amazon has an army of staff in China to help it find and manage merchants. The Seattle-based titan remains a highly attractive channel for exporting goods, even though it has been hit by a recent fake reviews scandal.
Many Amazon sellers are investing in product design and branding to cope with stricter platform policies. Others choose to take up acquisition offers from brand aggregations.
The collaboration could be a new alternative for Chinese exporters. It is possible to amplify your brands with the help of a platform such as Shopify, but it comes with more work and requires more hands-on with marketing and fulfillment.
Through the partnership with Shopify, the company promises to simplify access and compliance for Chinese brands and merchants looking to reach consumers in Western markets. The shipping will be taken care of by the person who lives in the other country.
The range of products and the global warehousing and shipping infrastructure of the two e-commerce giants complement each other nicely. It is an alliance worth watching.
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