JD.Com Claims Its Stake in China’s Parcel Delivery Arena by Opening up Its Logistics Network

In a decision that will see JD claim its stake in one of China’s most competitive markets, JD.com recently announced that it would open its logistics network to consumers. That symbolizes that customers will now be able to use the same fast and reliable delivery channel used by the company to deliver their purchased goods, and send their parcels.The firm announced that the service would first be rolled out to its clients who are in Shanghai, Beijing, and Guangzhou. Those living within these boundaries will now be able to send parcels both domestically and also throughout mainland China. Later, JD.com plans on expanding the capacity of its new delivery service, and thus enhances its convenience even more by allowing sending and receiving high-value items such as the latest products in consumer electronics and quality luxury products.

JD also plans on adding more delivery time options; hence making it even more convenient.Thanks to its nationwide logistics network, Jingdong believes that it can reach 99% of the population by ensuring that 90% of the orders reach the recipients either the same day or the next day. According to the firm’s Chief executive, Zhenui Wang, venturing into the parcel delivery arena marks JD.com’s next step in increasing its footprint in the nationwide logistic network it has been building for the past one decade.Due to this new service, customers now have the option of either sending parcels domestically or requesting pickups using WeChat, JD’s mini delivery program operated by one of its affiliates known as Tencent. Besides, JD is already conducting trials on this new service by offering multiple picks up points to customers to test its efficiency before it is launched.

Even though the parcel delivery arena is highly competitive, Jingdong believes that its new venture will bring it massive returns. The firm is also confident that through this service it will be able to expand its market even further. This is after 74% of the random people it conducted surveys on, expressed their need for quality, fast and reliable delivery services. Venturing into this sector will not only help it expand its client base but will also make it one of the biggest rivals for e-commerce companies such Alibaba group holdings and express carriers such as United Parcel service and ZTO Express Inc. among many others.JD.com is based in Beijing hence the reason why most of its services are first rolled out in the City. The organization was initiated in 2004, and has seen tremendous growth making it one of China’s largest e-commerce platforms regarding revenue.