Steady Revenue Growth Amid a Competitive Landscape

In the three months ending September 30, JD.com achieved net revenues of RMB 260.4 billion (USD 37.1 billion), marking a year-on-year increase of 5.1%. The growth was fueled by a resurgence in electronics and home appliances, alongside sustained momentum in general merchandise categories.

JD.com’s Chief Executive Officer Sandy Xu attributed this performance to the company’s ability to adapt to shifting consumer demands.

“In the third quarter, we played a crucial role in China’s government-backed trade-in programs, leveraging our advanced supply chain capabilities. This, coupled with robust user response to our Singles Day promotions, has strengthened our market position and laid the groundwork for sustainable growth,” Xu remarked.

Profits and Margins Reflect Operational Strength

JD.com recorded a significant boost in profitability. Net income attributable to shareholders surged by 47.8% year-over-year to RMB 11.7 billion (USD 1.7 billion), while operating income rose by 29.5% to RMB 12 billion (USD 1.7 billion). The company’s operating margin improved to 4.6%, compared to 3.8% during the same period last year.

This profitability was driven by efficiency gains across its extensive logistics network and economies of scale, which helped offset increased marketing and fulfillment expenses.

Strategic Business Initiatives Drive Engagement

JD.com’s Q3 performance was underpinned by several key initiatives that highlight its commitment to innovation and expansion across diverse sectors:

1. Government Trade-In Program: The company emerged as a pivotal player in China’s trade-in initiatives, operational in over 20 provinces. By integrating its logistics expertise, JD.com enabled customers to seamlessly trade in old appliances and electronics while benefiting from government subsidies. This program has been well-received by users and showcases the company’s ability to adapt to policy-driven market opportunities.
2. Fashion Expansion: Demonstrating its commitment to capturing the high-value fashion segment, JD.com welcomed flagship stores from luxury brands such as Balenciaga and Saint Laurent. This move not only expands JD.com’s product portfolio but also enhances its appeal to fashion-conscious consumers, fostering a new wave of growth in apparel and accessories.
3. Supermarket Milestone: Marking its 10th anniversary, JD Supermarket has become a cornerstone of the company’s retail strategy. With a focus on supply chain efficiency and competitive pricing, JD Supermarket continues to strengthen its partnerships with key brands, ensuring high-quality offerings for consumers.
4. Healthcare Advancements: JD Health made strides in enabling online payments through individual medical insurance accounts, now available in 12 cities. This innovation broadens access to healthcare services for millions, further embedding JD.com into the daily lives of its users.
5. Logistics Integration with Taobao and Tmall: In a notable development, JD Logistics reached a significant agreement with Alibaba’s Taobao and Tmall platforms. This integration allows merchants and consumers to track JD shipments directly within Taobao and Tmall apps, showcasing JD.com’s leadership in logistics excellence.

Commitment to ESG and Shareholder Returns

JD.com has maintained a strong focus on sustainability, achieving higher scores in the 2024 S&P Global Corporate Sustainability Assessment. The company’s efforts span governance improvements, employee development, and supplier management, positioning it as a global leader in retail ESG practices.

In terms of shareholder value, JD.com completed its USD 3 billion share repurchase program, reducing outstanding shares by 8.1% as of September 30, 2024. The company has now launched a new USD 5 billion share buyback initiative, reflecting its confidence in long-term growth.

Looking Ahead

Ian Su Shan, Chief Financial Officer of JD.com, expressed optimism about the company’s trajectory. “This quarter’s results highlight our commitment to delivering value through efficiency and innovation. Our expanding ecosystem and competitive pricing strategies will ensure continued growth and engagement with users and partners alike.”

JD.com’s Q3 results underscore its resilience in a challenging economic environment. As the company continues to innovate and scale its operations, it remains a key player in shaping the future of China’s e-commerce and logistics sectors.

JD.com Reports Significant Profit Growth in Q2

JD.com reported its unaudited financial results for the second quarter of 2024, showcasing a solid performance in its core business areas.

Despite a modest 1.2% year-on-year increase in net revenues, the company demonstrated significant profitability improvements and strategic business growth, particularly in its retail, health, and logistics segments.

In the second quarter, JD Retail strengthened its market position by entering into strategic partnerships with prominent brands like Xiaomi, Lenovo, OPPO, and luxury fashion houses including MONCLER and alexanderwang.

These collaborations focused on smart devices, intelligent supply chain management, and AI integration, underscoring JD.com’s commitment to enhancing user experience and expanding its platform ecosystem.

JD Health continued to innovate by partnering with major pharmaceutical companies to debut new and specialty drugs online, such as the Alzheimer’s treatment drug Leqembi®. These efforts highlight JD Health’s advanced omni-channel supply chain and service capabilities.

JD Logistics, another key segment, saw a significant improvement in profitability due to continued optimization of its network layout, algorithm-based vehicle scheduling, and product structure. These enhancements contributed to cost reductions and efficiency gains, further solidifying JD.com’s leadership in China’s logistics industry.

Financial Highlights

JD.com reported a net revenue of RMB291.4 billion (US$40.1 billion) for the second quarter of 2024, a slight increase from RMB287.9 billion in the same period last year.

Despite the modest revenue growth, the company achieved significant improvements in profitability metrics. Cost of revenues slightly decreased by 0.4% to RMB245.5 billion, contributing to a gross margin increase of 137 basis points year-on-year to 15.8%.

Operating income for the quarter rose by 27.0% to RMB10.5 billion (US$1.4 billion), with an operating margin of 3.6%, up from 2.9% in Q2 2023. On a non-GAAP basis, operating income increased by 33.7% to RMB11.6 billion (US$1.6 billion), with a non-GAAP operating margin of 4.0%.

Net income attributable to JD.com’s ordinary shareholders saw a remarkable 92.1% year-on-year increase, reaching RMB12.6 billion (US$1.7 billion), while non-GAAP net income attributable to shareholders rose by 69.0% to RMB14.5 billion (US$2.0 billion).

This strong profit growth was reflected in the diluted net income per ADS, which nearly doubled, increasing by 97.3% to RMB8.19 (US$1.13).

JD.com also reported robust cash flow figures, with operating cash flow for the twelve months ended June 30, 2024, increasing by 40.9% to RMB74.0 billion (US$10.2 billion). Free cash flow, excluding the impact from consumer financing receivables, surged by 66.2% to RMB55.6 billion (US$7.7 billion).

Additionally, the company’s ongoing share repurchase program resulted in the buyback of approximately 224.3 million Class A ordinary shares during the first half of 2024, representing around 7.1% of its outstanding shares as of December 31, 2023. This move, coupled with JD.com’s record-high operating and net profits, underscores the company’s commitment to delivering long-term value to its shareholders.

Q1 2024

JD.com reported its unaudited financial results for Q1 2024, alongside significant operational developments.

Strategic and Operational Highlights

CEO Sandy Xu emphasized JD.com’s focus on improving user experience, leading to significant growth in active users and engagement. The company continues to provide a superior combination of selection, speed, quality, and price, resonating with consumers nationwide.

AI in Livestreaming

On April 16, 2024, JD.com introduced an AI digital representative of founder Richard Qiangdong Liu for its livestreaming rooms. This innovation attracted over 20 million views within the first hour, marking a significant milestone in AI integration within e-commerce.

Healthcare Expansion

JD Health partnered with pharmaceutical giants like Pfizer and Sanofi to debut new drugs online, enhancing accessibility and upgrading its one-stop medicine retailing and healthcare services through collaborations with Shanghai Pharmaceuticals and Daiichi Sankyo.

Logistics Growth

JD Logistics expanded its support for Chinese brands globally. In Q1 2024, it provided integrated supply chain services to MINISO stores in Australia and Malaysia, showcasing JD’s international warehousing and fulfillment capabilities.

Financial Highlights

• Revenue: Net revenues for Q1 2024 were RMB260.0 billion (US$36.0 billion), a 7.0% increase from Q1 2023.
• Income from Operations: Reached RMB7.7 billion (US$1.1 billion), up 19.8% from Q1 2023.
• Net Income: Net income attributable to ordinary shareholders was RMB7.1 billion (US$1.0 billion), up 13.9% from Q1 2023.
• Earnings per Share: Diluted net income per ADS was RMB4.53 (US$0.63), a 15.3% increase from Q1 2023.

Between January 1 and May 15, 2024, JD.com repurchased 98.3 million Class A ordinary shares (49.2 million ADSs) for US$1.3 billion, representing 3.1% of its outstanding shares as of December 31, 2023.

Financial Highlights

• Revenue: Reached RMB236.5 billion (USD33.7 billion), marking a 5% year-over-year increase.
• Net Income: Surged 63% year-over-year to RMB43.5 billion (USD6.2 billion), driven by equity investment gains and operational efficiency improvements.
• Adjusted EBITA: Decreased 5% year-over-year to RMB40.6 billion (USD5.8 billion), reflecting Alibaba’s strategic investments in e-commerce and technology.
• Free Cash Flow: Declined 70% to RMB13.7 billion (USD1.96 billion), attributed to increased investments in cloud infrastructure and strategic refunds to merchants.

E-Commerce Growth: Strengthening Core Operations

The Taobao and Tmall Group remained central to Alibaba’s business:

• Revenue: Grew modestly to RMB93 billion (USD13.3 billion), supported by double-digit order growth and increased customer management service revenues.
• 88VIP Membership: Increased by double digits to 46 million, underscoring its role in driving loyalty and higher purchase frequencies.

Strategic changes, including the elimination of Tmall’s annual service fees and the introduction of transaction-based software service fees, were pivotal in enhancing the platform’s competitive edge.

Read more on Double 11 performance, China’s largest annual shopping festival.

Cloud Intelligence Group: AI-Driven Expansion

• Revenue: Grew 7% year-over-year to RMB29.6 billion (USD4.2 billion).
• AI Leadership: Achieved triple-digit growth in AI-related revenues for the fifth consecutive quarter. The Qwen large model family, including its open-source Qwen 2.5 series, positioned Alibaba as a leader in China’s public cloud and AI infrastructure sectors.
• Operational Enhancements: Introduced cost-efficient AI services and upgraded infrastructure to support scalability and performance.

Global Commerce Expansion

The Alibaba International Digital Commerce Group achieved a robust 29% revenue increase year-over-year to RMB31.7 billion (USD4.5 billion):

• AliExpress and Trendyol: Continued to gain traction in Europe and the Gulf region, leveraging local inventory and cross-border logistics efficiencies.
• Cross-Border Focus: The AliExpressDirect model improved fulfillment speeds and customer satisfaction, strengthening its competitive positioning.

Cainiao Logistics and Local Services Growth

Cainiao Smart Logistics Network delivered 8% revenue growth to RMB24.6 billion (USD3.5 billion), supported by enhanced cross-border fulfillment capabilities.

Local Services Group reported:

• Revenue: Increased by 14% to RMB17.7 billion (USD2.5 billion).
• Operational Efficiency: Losses narrowed significantly, benefiting from scaled operations and marketing service growth.

Strategic Share Repurchase Program

Alibaba repurchased shares worth USD4.1 billion during the quarter, reducing its outstanding shares by 2.1% since June 2024. This initiative reflects Alibaba’s commitment to shareholder value, with USD22 billion remaining in its repurchase authorization through March 2027.

Alibaba Group highlights for Q2 2024

Alibaba Group released its financial results for the quarter ending June 30, 2024, showcasing both growth in strategic areas and challenges in maintaining profitability. The company continues to focus on its core businesses, particularly cloud computing and international expansion, while navigating a complex economic landscape.

Business Overview

Cloud Intelligence Group Sees Strategic Expansion Alibaba’s Cloud Intelligence Group reported notable year-on-year growth, driven by increasing demand for cloud services across sectors such as finance, retail, and logistics.

The expansion of AI-powered solutions and cloud infrastructure remains a cornerstone of Alibaba’s strategy to diversify its revenue streams and position itself as a leader in the global cloud market.

The international digital commerce segment recorded solid performance, underpinned by Alibaba’s strategic investments in key markets.

The company’s international operations, including platforms like Lazada and AliExpress, demonstrated strong user growth and increased transaction volumes, particularly in Southeast Asia and Europe. These regions are becoming increasingly significant as Alibaba seeks to reduce its reliance on the domestic Chinese market.

During the quarter, Alibaba continued to invest heavily in technological innovation, focusing on enhancing its AI, machine learning, and data analytics capabilities.

These investments are aimed at driving long-term growth and improving operational efficiency across all business units. Additionally, Alibaba’s commitment to building a robust technological infrastructure reflects its strategy to maintain a competitive edge in the rapidly evolving digital economy.

Financial Highlights

In the June quarter of 2024, Alibaba Group reported a revenue of RMB243.2 billion, a 4% year-on-year increase. While this growth reflects the company’s strong positioning in cloud computing and international commerce, the overall revenue expansion was moderate, indicating potential challenges in its core domestic market.

Net income for the quarter declined to RMB34.3 billion, reflecting a significant impact from increased spending on technology development and international market expansion. This decline suggests that while Alibaba invests for future growth, these investments weigh on current profitability.

Alibaba’s adjusted EBITDA stood at RMB52.8 billion, showing resilience in operational efficiency despite broader market challenges. Free cash flow was robust at RMB31.9 billion, underscoring the company’s strong cash-generating ability and providing a buffer for continued investment in growth initiatives.

Alibaba’s Strategic Investments Yield Mixed Results in Q1 2024

Alibaba Group Holding Limited reported a robust performance for the quarter ending March 31, 2024, showcasing a strategic rebound and growth across its diverse business segments.

The e-commerce giant’s focus on enhancing customer experience and strategic investments has resulted in notable year-over-year growth, despite challenging market conditions.

Strategic Initiatives and Business Review

Alibaba’s strategic initiatives have significantly impacted key sectors, including e-commerce, cloud computing, digital media, and logistics. The company’s focus on improving user experience, technological advancements, and expanding international commerce has paid off.

• E-commerce: Alibaba’s Taobao and Tmall Group saw a 4% year-over-year revenue growth, reaching RMB 93.2 billion, driven by a 5% increase in customer management revenue. The group also reported double-digit growth in online GMV and orders.
• Cloud Computing: The Cloud Intelligence Group reported a 3% revenue increase, reaching RMB 25.6 billion, with a notable 45% rise in adjusted EBITA. This growth was driven by higher adoption of public cloud services and AI products.
• International Commerce: The Alibaba International Digital Commerce Group experienced a 45% revenue increase to RMB 27.4 billion, thanks to strong performance in cross-border e-commerce, particularly from AliExpress.
• Logistics: Cainiao Smart Logistics Network’s revenue surged by 30% to RMB 24.6 billion, primarily due to increased demand for cross-border fulfillment services.
• Local Services Group: Reported a 19% revenue increase to RMB 14.6 billion, driven by Ele.me and Amap’s strong order growth.
• Digital Media and Entertainment Group: Revenue slightly decreased by 1% to RMB 4.9 billion, despite growth in Alibaba Pictures and Damai.

Financial Highlights

Alibaba’s financial results for the March quarter demonstrated resilience and strategic growth:

• Revenue: The company reported a 7% year-over-year increase in revenue, totaling RMB 221.9 billion (US$30.7 billion).
• Income from Operations: Despite a 3% decline, income from operations stood at RMB 14.8 billion (US$2.0 billion).
• Net Income: Net income attributable to ordinary shareholders decreased by 96% to RMB 919 million (US$127 million), mainly due to investment losses.
• Adjusted EBITA: Non-GAAP adjusted EBITA decreased by 5% to RMB 24.4 billion (US$3.3 billion).
• Share Repurchases and Dividends: Alibaba repurchased US$12.5 billion worth of shares in fiscal 2024 and announced a US$4.0 billion dividend.

Alibaba’s Q1 2024 results highlight the success of its strategic initiatives and investments in enhancing customer experience and technological infrastructure. The company’s focus on e-commerce, cloud computing, and international expansion positions it well for future growth. As Alibaba continues to innovate and adapt, it remains committed to delivering value to shareholders and capturing new market opportunities.

Cainiao Network, an Alibaba affiliate, was founded in 2013 to create a logistics information platform that links a network of delivery partners, warehouses, and merchants to make package deliveries faster and more efficient. 

Cainiao’s business covers express delivery, warehouse fulfillment, last-mile delivery, rural logistics and cross-border logistics.

Cainiao Network connects 6.1 million delivery routes, 2 million couriers, over 40,000 pick-up stations, 3,000 transportation companies, 30,000 rural villages, and 15 leading express delivery companies.

According to AliResearch, China’s logistics industry has grown by more than 50% for six consecutive years due to the increasing popularity of online shopping and e-commerce. Some 80 million parcels are delivered every day, adding up to 31.3 billion a year.

In March 2017, 81% of the shipping labels used by these express courier firms for orders generated on Alibaba’s China retail marketplaces used Cainiao Network’s standardized structured data format to ensure faster and more accurate delivery to consumers, up from 60% in the same period last year.

It has integrated data with Russia Post, reducing the parcel time from 50 days to 15 days.

A girl from Chile bought her father a watch as a gift at US$41.01 from Alibaba’s retail platform AliExpress on 10 April 2017. What she did not know is that she is recorded by Alibaba as the 100 millionth customer.

AliExpress.com is Alibaba’s cross-border B2C e-commerce platform with users from over 220 countries, with 60 million active buyers during the past 12 months. Its daily visitors are over 20 million.

Having reached the 100 millionths overseas buyer on AliExpress, Alibaba is upgrading Cainiao’s cross-border supply chain and logistics capabilities and management.

Cainiao, global parcel tracking platform of Alibaba Group, has integrated data with Russia Post, reducing the parcel time from 50 days to 15 days. Transaction values of Russian online buyers on China’s online platforms through Yandex increased by 30 times in 2015. In 2016, Chinese websites accounted for 52% of total cross-border trading e-commerce transactions in Russia.

Cainiao has also set up an overseas warehouse in Spain to achieve fast order fulfillment. A buyer in Madrid received his parcel after 5 hours of placing the order during a promotion in March 2017.

Delivery time from China to Chile has been reduced to 20 days from 45 days; and, time from China to Mexico and Columbia is reduced by half to 25 days.

Continue to read China online shopping market forecast 2017-2019

China had more than 5000 different types of cross-border online platforms serving over 200,000 companies of e-commerce operations in 2015. Driven by the rapid growth of e-commerce, small and medium e-commerce companies has become a new growth focus in China.

Report of PayPal and Ipsos showed that 81% of Chinese consumer shopped online in 2015 and 35% bought cross-border products online. The ratio of cross-border online shoppers was only 26% in 2014.

Online shopping platforms in the United States, South Korea, and Japan were most popular among the Chinese cross-border shoppers in 2015. More affordable high-quality genuine products and new products were the main reasons for Chinese consumers.

Strong consumption power of Chinese online shoppers boosted many countries to publish special policies to support the cross-border consumption. For example, Korea Customs Service announced to ship goods to Qingdao logistics center as a cost-saving purpose and then to reach Chinese consumers by local courier system in 4-5 days.

China’s cross-border transaction value was predicted to reach 6.5 trillion yuan (US$0.997 trillion) in 2016 and would make up as high as 20% Chinese total foreign business with an annual growth rate of over 30% according to the Chinese Ministry of Commerce.

Also read: China Cross-border Online Shopper Insights 2015

A total number of more than 60 China’s e-commerce websites entered Russia in 2015 including AliExpress, Jingdong, TradeEase and other start-ups according to Yandex.

Transaction values of Russian online buyers on China’s online platforms through Yandex increased by 30 times in 2015 compared with 2014 and accounted for 57% overseas retail revenues of Yandex which was almost 9.5 times last year’s sales.

A total number of over 1 million packages were sent to Russia during Double 11 and Black Friday shopping season in 2015 according to China Times.

Overall, a total number of payments to China’s online trades through Yandex increased by 38 times and total payment users expanded by three times. Russian online shoppers made about 50 million orders on China online shopping platforms.

Shoppers in Russian Federation central administration region accounted for 34% total Russian consumers on China’s online shopping platforms, followed by Volga region (19%) and Northwest region (14%). Shoppers in the Ural region (9%), North Caucasus (2.6%) and the Far East administrative region (2%) were relatively few.

Russian online shoppers mainly purchased apparel, shoes, children products, mobile phones and the like from China’s e-commerce platforms. Most Russian consumers preferred bank card and Yandex Wallet to pay for orders and 85% buyers on China’s online platforms paid with bank cards and Yandex Wallet.

Convenient global internet environment and improving logistics services were best contributors towards cross-border online shopping market. SF Express expanded its China-Russia delivery services several days ago. Packages could be delivered with 30 kilograms instead of 2 kilograms and could be dispatched in 10 to 15 days.

Also read: China Retail V.S. Online Shopping 2015

35% of China’s online shopping consumers bought cross-border products online in 2015, and 73% respondants said the price was the main reason for cross-border shopping according to PayPal and Ipsos research.

35% Chinese online shoppers once purchased cross-border products online in 2015 compared to 26% last year. The cross-border online shopper was expected to reach 35.6 million by 2018 and total 1 trillion yuan (US$o.16 trillion) according to Chinese Commerce Research Center.

Price and shipping fees are major concerns of Chinese cross-border online shoppers. 73% respondents said buying cross-border products online are sometimes much cheaper than in online stores and shopping malls according to PayPal. Shipping charges influenced orders to some large extent that nearly half wouldn’t buy cross-border products online due to high shipping costs and the other half were willing to try cross-border shopping if free shipping was offered.

Chinese consumers are willing to buy clothes, digital products, skin-care products, infant formula, health care products and the other online. 73% were used to purchase health care products from overseas market online according to Mintel, and 57% urban consumers believed imported health care products more versatile. 56% believed imported products are more credible with higher quality.

America, South Korea, Japan and some European countries were major cross-border online shopping destinations for the Chinese.

Also read: China Online Shoppers to Spend $150 Billion in Holiday Season 2015

Alibaba announced through its official Weibo that it will invest SGD 313 million (about USD 249 million) in Singapore Post (SingPost) for 10.35% share in SingPost.

Both parties have agreed to jointly develop “an international e-commerce supplier logistics platform”.

Alibaba launched a Southeast Asia regional page for its online shopping platform Taobao last year and package forwarding service for Singapore and Malaysia. The investment in SingPost could  indicate Alibaba’s potential push for cross border trading between China and Southeast Asia.

Total number of China’s annual delivery packages might rank the number one in the world in 2013, according to China Post official data. By the end of November, China packages delivery reached 8.12 billion in 2013.

In November 2013, the number of Express Delivery packages hit 1.09 billion, up 61.9% compared to 2012. China Post estimated that the total number of Express Delivery packages was about to reach 9 billion in 2013.

During Double 11 promotion period this year, packages increased to 346 million, 73% higher than that of 2012. On November 13, the number of packages processed in the day hit the highest 65.17 million, with 85% YoY increase. Express Delivery industry had experienced over 50% growth rate for 33 months consecutively. Analysts predicted that national packages number was very likely to hit 9 billion, as December is a traditional shopping month. On average, each Chinese received 6-7 packages in 2013.

The boom of e-commerce drove the rapid growth of Express Delivery industry, in returns, it also helped e-commerce develop. In November, retail sales of social consumer goods increased 13.7% annually, retail sales YoY increase rose faster to 14.3%. A large part of the newly increased retail sales came from online shopping. Chinese online shoppers was estimated to hit 310 million, 70% online shopping transactions required Express Delivery service.

Though Express Delivery is growing at a fast pace, competition within the industry became extremely intense. In 2013, many Express Delivery companies involved in price war, profit rate fell to 5% and kept falling. A lot of companies gave up profits to gain market share during Double 11 promotion period, making the logistics peak period unprofitable.

According to Enfodesk, China mobile shopping market in Q3 2013 reached 34.1 billion yuan (USD 5.56 billion), with a QoQ increase of 17.7% and a YoY increase of 104%, growing pretty fast.

The growth in Q3 was due to the drive of e-commerce enterprises. They improved mobile-end user loyalty by offering discount and coupons, in order to cultivate user’s mobile shopping habits.

MTOP, is Taobao’s mobile open platform launched in December 2010. It helped a lot of Independent Software Vendors (ISV) to develop mobile apps, such as Meilishuo and Mogujie (Pinterest like social networks in China). MTOP allows Taobao to share its mass consumer market with partners, offering them shop management service, product management, logistics service and other e-commerce services. Taobao aims at serving its 400 million consumers and 5 million wholesalers better and satisfy their needs with MTOP partners.

In mobile shopping market, MTOP alone occupied 79.1% share in Q3 2013, it was absolutely the market dominate. Jingdong mobile ranked the second with 8.7% share, followed by Maimaibao with 1.3%. The other mobile apps were all below 1% market share.

Although Double 11 is one month ahead, big B2C platforms are busily preparing for logistics.

Last year, the battle over Double 11 began with the competition for brands. This year, the prologue is logistics. Some enterprises revealed that Jingdong’s emails claiming that it would offer logistics compensation and traffic compensation. Experts said Jingdong aimed not only to attract enterprises for Double 11, but also guaranteed  the quality of logistics service. Jingdong announced that if sellers choose Jingdong’s logistics service for the coming year, it would offer logistics service for free from October 26 to November 30 in 2013.

As the main player in Double 11, Alibaba has announced its cooperation with EMS, Shentong Express and other big logistics service companies. Besides, Alibaba is upgrading its logistics warning radar, combined with weather forecast to ensure the quality of logistics service during Double 11.

Many brands has already begun preparing for Double 11 half a year ago. Because shipments will increase drastically during Double 11, their own staff couldn’t handle the sudden surge of orders. Quite a lot brands chose Commercial Global E-Commerce Co.Ltd. and other professional warehousing companies. Last year, Commercial Global E-Commerce processed 1.5 million orders per day during Double 11. This year, it is estimated to be 3 million orders per day.

Early in September 2013, Alibaba massive logistics network merged with Rookie, a logistics company set up by Alibaba, Yintai Holdings, Fosun Group, Forchn Holdings. This year’s Double 11 is also a tial for Alibaba’s Rookie network. Many expressed their concern for Rookie, whether it could process the estimated 400 million orders during Double 11.