There is a lot going on in the world of e-commerce. The article “Chinese Online Retailer JD.com Turning Its Logistics Network Into Broader Delivery Service” on The Wall Street Journal’s website talks about the expansion of the internet retailer JD.com and how they are moving into delivery as their next focus in the market. Package delivery may seem a far cry from the general retail that JD.com is known for, by it is a very natural progression for the e-commerce company. They possess a very expansive network of delivery locations because they deliver their goods themselves. This means that they also have all of the hubs and warehouses necessary to facilitate a complete network. It would be criminal not to cash in on this exceptional commodity that they possess.
When it comes to their new jump into the package delivery system, JD.com is not playing around. They already have a theory expanded network to take on their orders. This network would simply include package delivery for other retailers and customers. There would be an assurance that many of the packages that they send will arrive in a fraction of the time. JD.com has already proven that they can deliver more than 90% of the orders that they receive on their website within less than a day. It is an efficient timeline that they believe will make them better suited for this role. Their biggest competitors in this arena are going to be ZTO express and SF express. Both companies can be likened to bigger delivery companies in the Western world such as FedEx and UPS.
The work that JD.com has put into the venture shows that they are serious about breaking into the general package delivery market. In fact, they believe that this will be one of the ways that they can support their expansive market and perhaps extended. The package delivery business will prove to be quite competitive for them, but they seem to have come into this situation completely aware of the circumstances. Perhaps, this is a step towards a much bigger goal in the future. The CEO has been on record stating that he would love to take it JD.com become global.