Why did eBay return to China together with JD.com?

[[132426]]

After a year of preparation, JD.com's cross-border e-commerce business has finally been unveiled. The platform, known as "Global Shopping", has launched more than 150,000 products in its first batch, with more than 1,200 brands and 450 stores, covering many categories including maternal and child products, food and health care, clothing and shoes, gifts and bags.

In the cross-border e-commerce business, Tmall, Amazon and even Jumei have already gone online before JD.com. However, due to limitations in procedures and supervision, problems such as counterfeit goods are rampant. JD.com hopes to use the concept of authentic goods that it has relied on for many years in its B2C mall business, as well as its unique two models of self-purchase and self-operation + merchant entry, to promote global shopping brands.

The cooperation between JD.com and eBay has become the biggest highlight of JD.com's launch of its global shopping platform. Why did eBay choose JD.com among many cross-border e-commerce platforms? What kind of "chemical reaction" will the combination of the two produce?

eBay returns to China through JD.com

Ten years ago, eBay China's eBay EachNet was competing with Taobao for the Chinese market, and a large number of Chinese netizens were being indoctrinated with the concept of "online shopping". However, due to multiple internal and external reasons, eBay disappeared in China.

The launch of the "eBay Overseas Selection" channel on JD Global Shopping Platform can be regarded as a return of e-commerce veteran eBay. eBay, which has been established for 20 years, is currently the second largest e-commerce platform in the United States after Amazon, with a market value of more than 60 billion US dollars. Its early C2C business model and unique online auction model have ignited many emerging companies.

There are many reasons why we chose JD.com when we returned to China. As the largest B2C e-commerce platform, JD.com has nearly 100 million active users with huge spending power and potential. Overseas merchants can reach Chinese consumers on a large scale and achieve precision marketing in the later stage. At the same time, JD.com integrates its own resources to promote overseas merchants, achieves global exposure, and enhances its influence in China.

In addition to introducing eBay's high-quality merchants and products to China to meet the needs of domestic consumers, JD.com also discusses various optimization solutions at more levels with eBay to achieve more cooperation. I believe that consumers will benefit more in the future.

Why did eBay choose to enter China at this time?

It is reported that from 2012 to 2015, my country's cross-border e-commerce developed rapidly, consumer demand continued to increase, and overseas shopping entered a market of hundreds of billions. Even so, cross-border e-commerce has not yet reached the red ocean competition stage. In the next three to five years, it may form a market scale of one trillion.

In July 2014, the General Administration of Customs issued Announcement No. 56 (2014) which clearly defined the scope of inbound and outbound goods and articles traded across borders through e-commerce platforms connected to the customs network, as well as data transmission, enterprise filing, declaration methods, and regulatory requirements. This regulation completely eliminated many gray areas in cross-border e-commerce operations and brought many policy dividends to the development of the cross-border e-commerce industry.

If JD.com's localization advantages, mature supply chain management system and logistics are the "geographical advantages" for eBay to return to China, then the domestic policy dividends allow eBay to take advantage of the "time", and the rapidly growing overseas shopping demand is the important "people". From this perspective, eBay's return to the Chinese market with the help of JD.com at this time can be regarded as catching up with the best opportunity.

In summary, whether it is their own needs or industry trends, the cooperation between eBay and JD.com to return to China will bring greater development breakthroughs. JD.com's self-operated + platform model will promote many merchants on the eBay platform to quickly enter China and achieve localized development. At the same time, benefiting from mature supply chain management and the advantage of the last-mile logistics, merchants on the eBay platform will also better meet the needs of consumers.

Not only that, JD Global Shopping is considered to be a very powerful player in the domestic cross-border e-commerce business, which is not good news for Tmall Global, Amazon Overseas Shopping, etc. In addition, for large companies such as Suning and Gome that have not yet made a substantial start, as well as small and medium-sized similar startups, they need to follow up as soon as possible.