Two of the world’s biggest e-commerce platforms, Shopify (NYSE: SHOP) & JD.com (NASDAQ: JD), are joining forces to help global brands tap into China’s market, & vice-versa.
More Details🧐 The partnership will see JD.com open an “accelerated channel” for brands listed on Shopify. The channel will allow brands to start selling in 3-4 weeks, as opposed to the normal 12-month process.
Often described as the Amazon (NASDAQ: AMZN) of Asia for its established logistics network, JD.com will handle the price conversion & logistics from the U.S. to China.
The partnership also aims to simplify access to Chinese merchants & brands looking to reach consumers in Western markets.
Why is this Important🤔 The move comes in line with Shopify’s expansion plan in China, as well as JD.com’s plan to enter international markets. The partnership will help JD.com differentiate from competitors like Alibaba. Shopify, however, will enter a crowded market, with Amazon still the go-to channel for exporters, thanks to its market dominance.