JD.com is among the largest e-commerce platforms in China. The company is also known as Jingdong mall, and it was initially known called 306buy.com. During its first operations, the firm was a brick and motor store dealing with mainly electronic merchandise. The company has its headquarters in China’s business city of Beijing.
The e-commerce platform was established in 1998 by Richard Liu, and it’s the most comprehensive platform considering transactions and revenues. Its owner, Richard Liu, has reputable experience dealing with commerce and retail. He began his entrepreneurship by selling magneto-optical products in June 1998 in Beijing city.
The brick and motor operations were heavily affected by the outbreak of SARs, which majorly affected China. Richard Liu had to come up with the idea that would make his business continue. The idea was to start an e-commerce platform that will help clients get their goods at their homes. That is how JD.com was born.
In the beginning, JD stock was mainly electronic goods before becoming fully-packed e-commerce retail in 2008. The platform offers its services using two languages, English and Chinese. The Chinese language is used in its central platform JD.com while English is used in the JoyBuy.com platform.
Between 2004 and 2008, the platform was using the domain name 360buy.com, and it made significant changes with massive development and growth. During that time, the platform had to transform into a B2C online direct platform focusing on 3C merchandises (consumer, computer, and communication products).
In 2007, the platform got its first funding of around $10+ million and getting $21 million in 2009. This funding was a massive boost to the expansion of the platform in geographic coverage and product lines. At the end of 2012, the JD stock led in annual sales, hitting $6.6 billion. The platform shifted its domain name to JD.com after the 7th funding in 2013, which was about $700 million.
After the funding, the company had to start its journey to go public. By the time JD’s operations shifted to e-commerce, there was taobao.com, Alibaba’s strong platform. That was one of JD’s huge competitions. To face the completion, JD had to start direct sales to its customers in product delivery. This was the perfect match for its 3C product category.
The company has more than 100 1000 operational workers with seven fulfillment centers, 213 warehouses, and 5367 trucks across China Logistics. JD has heavily invested in robots, AI, and high-tech delivery via drones and autonomous technology. The company has the most powerful drone delivery system, capability, and infrastructure across the world.
2007 was a challenging year for e-commerce platforms in China. In that year, Richard Liu had an idea of coming up with JD’s self-logistics network. However, the idea did not have much support from its investors. It led to a heated debate between the shareholders.
Richard did not back off the idea. He went to establish a logistics network for the platform. He first put his priority on the country’s two big cities of Shanghai and Beijing. He quickly set up warehouses and logistics centers. JD was making same-day delivery for its 3C commodities within the major cities.
JD was the first online retail operator in China Logistics to launch a mobile POS system. The system was to enable customers to pay via credit cards for their delivered goods. The payment method was a boost to the customers’ trust as they got the chance to inspect the products upon delivery before payment.
JD stock is one of the largest in China’s e-commerce retail industry. JD also boasts of the most extensive infrastructure system compared to its competitors. Although its infrastructure and logistics systems are the largest, they had to come through a price.