The deal with JD.com gives retailers and brands that use the Shopify platform a way to bypass the slow approval process that U.S. merchants usually must navigate to sell in China.

Ecommerce platform Shopify and online marketplace JD.com Inc. have entered an agreement to facilitate sales in China by U.S. retailers. The deal will also make it easier for retailers who use the Shopify platform to source items from JD.com suppliers.

Under the terms of the deal, JD.com will open an accelerated channel for brands on Shopify to sell products through JD Worldwide, the company’s cross-border ecommerce marketplace. The accelerated channel will reduce the time to market in heavily regulated China to just three to four weeks from 12 months, according the companies.

“We believe that the partnership will unlock the huge potential of the Chinese market for brands outside of China,” Daniel Tan, president of JD Worldwide, said in a statement announcing the agreement. “At the same time, it will increase cross-border commerce by leveraging our global supply chain abilities, simplifying what has traditionally been a very complicated process.”

Under the deal, U.S. retailers will list products for sale on JD’s cross-border ecommerce platform JD Worldwide. In addition, U.S. retailers will have access to

  • Order fulfillment from JD’s U.S. warehouses directly to consumers in China using JD.com’s China-U.S. cargo flights, 1,300-plus warehouses and 200,000-plus delivery personnel in China.
  • Smart price conversion to local currency based on foreign exchange rates, typical category pricing, as well as China’s value-added tax (VAT) and consumption taxes.
  •  Translation of product names and descriptions.

Shopify and JD.com did not release details on revenue share or fees.

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JD.com is No. 4 in the Digital Commerce 360 2021 Top Online Marketplaces Report.

JD.com and Shopify and the cross-border initiatives

Shopify has put considerable emphasis in recent months on expanding its presence in global. markets. In September 2021, the platform debuted Shopify Market, which provides translation services and currency conversion. More than 27% of all traffic to Shopify stores comes from international buyers, Shopify said when announcing Shopify Market.

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Walmart and JD had already teamed up in China when JD agreed to buy the U.S. retailer’s online operations in the country. In return, the Bentonville, Arkansas retailer bought a stake in the business. Walmart, which is No. 2 in the 2021 Digital Commerce 360 Top 500 Report, also co-led a $500 million fundraising in August for JD affiliate Dada-JD Daojia, which connects fleets of motorbike delivery staff with merchants in hundreds of Chinese towns and cities.

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