In this photo illustration, the JD.com logo is displayed on the smartphone screen.
Jonathan Ra | Null Photo | Getty Images
JD.com China’s e-commerce giant launched its long-awaited European online shopping platform on Monday as it looks to take on the challenge. Amazon The same goes for domestic rivals who are already expanding internationally.
Joybuy, JD.com’s international online shopping brand, has entered six new markets, including the UK and Germany, and the company is banking on fast delivery and high-quality products to beat rivals.
While peers such as AliExpress and Temu operate an asset-light model and ship products directly from China, JD.com has its own local warehouse and logistics network that allows it to minimize delivery times.
This approach has been successful in China, where Jingdong has developed an extensive logistics network for ultra-fast deliveries and established itself as a destination for domestic consumers to buy global brands such as Apple.
The Chinese tech giant said European customers could get same-day delivery if they ordered by 11am, and there would be no extra charge in the UK for orders over £29.
Joybuy also plans to open brand stores from companies such as L’Oréal Paris and De’Longhi. These are effectively branded spaces within the Joybuy app where businesses can showcase their official products.
JD.com is entering the competitive European e-commerce market, which features large players like Amazon as well as smaller local companies and competing services. alibabaPDD of AliExpress and Temu owners.
Both AliExpress and Temu have sought to bring competitively priced products to the European market, but have relied on a marketplace model of third-party sellers selling through their own platforms.
Temu and AliExpress have been expanding internationally in recent years, and JD wants to catch up.
Joybuy emphasizes that it owns much of the inventory it sells.
Matthew Nobbs, Joybuy’s UK managing director, said in an interview with CNBC: “We are an in-house retailer and we are completely different from other retailers based on customer propositions.”
“So we’re not doing any bare-bones business. We’re first and foremost a retailer for brands, and that’s at our core.”
“De minimis” refers to regulations in various countries that exempt low-value goods from customs duties.
shipping speed
According to Nobbs, Joybuy has been in a “beta” testing phase for more than six months, and the platform is now ready for full launch.
Joybuy offers free same-day delivery on orders over £29, but the company has also launched a monthly membership service called JoyPlus. It costs £3.99 and users get unlimited free deliveries. By comparison, Amazon Prime in the UK costs £8.99.
“Supply chain is the core strength of everything we do,” Nobbs said.
Same-day delivery will not be available to all customers in the countries Joybuy launches, but the group plans to eventually expand its warehouse footprint.
Joybuy executives said the company would expand its warehousing presence in the UK and other markets “gradually”.
