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Shopify and JD tie-up to help U.S. merchants sell in China

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Shopify headquarters is located in Ottawa, Ontario Canada.

Chris Wattie | Reuters

ShopifyIt has formed a partnership with the Chinese giant of ecommerce JD.comTo help U.S. merchants to sell their products in the second largest economy on earth.

This deal is a major step forward in Shopify’s China expansion as well as a step towards JD’s internationalization efforts.

JD stated that Shopify will offer an “accelerated channel” to allow brands to start selling on its cross-border website in China. JD stated that merchants will be able to set up their shop within three-to four weeks, rather than 12 months as it normally takes for foreign brands in China.

JD will manage the logistics and price conversion from U.S.A to China. JD has its own logistics armThe company has a large network of warehouse workers and delivery drivers that it considers a competitive advantage. Alibaba.

They also stated that Shopify and JD would “collaborate in simplifying access and compliance for Chinese brand and merchants seeking to reach Western consumers,”

Shopify was already a player in China’s market. The company started letting merchants accept payments via Alipay in 2020. This is one of China’s most popular digital wallets. Alipay is managed by Ant Group, an Alibaba affiliate.

JD’s tie-up represents its biggest push to date, with more than 500 million active Chinese customers.

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