- China’s JD.com will soon have a flagship online store on Google.
- It will be the first time the Chinese e-commerce giant can sell directly to US customers.
- The partnership was announced in June, when Google invested $US550 million in JD.com.
- The partnership comes as rising trade tensions threaten to derail partnerships with Chinese companies selling in the US.
China’s JD.com is about to get more access to the American customer.
The retailer, which claims to be the largest in China to sell directly to customers, is opening a US online store with the help of Google soon, according to Bloomberg. The partnership, which was announced in June, will enable it to sell directly to US customers for the first time. Google will handle payments and behind-the-scenes order processing, but JD.com will have its own centres for shipping orders.
“We are shipping from US fulfillment centres to US end-customers,” Bao Yan, JD.com’s head of logistics, told Bloomberg.
A representative for JD.com confirmed the plans to Business Insider but said a launch date has not yet been set.
JD.com does not currently sell directly into America, but it does have a partnership to sell products in the US through Walmart. The Google partnership would be more direct.
It’s the first fruit of a partnership since Google revealed a $US550 million investment in JD.com earlier this year.
JD.com claims to be the largest retailer in China, but it doesn’t have much of an international presence yet. It operates more like a traditional retailer, akin to Amazon, and not as a marketplace like Alibaba.
JD.com’s arrival on US shores comes as Amazon is solidifying its hold on US e-commerce. Google could be looking to get in on ad-based product searches, a growing field for advertising that is currently one of Amazon’s fastest-growing businesses.
But it also comes at a uncertain time, as it seems trade tensions between the US and China will not let up anytime soon. It’s unclear how that will affect JD.com’s plans.
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