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The Race is On: China’s Jingdong Starts 3-Hour Delivery in Major Cities

Jingdong-3-hour-delivery-China[1]by  (courtesy TechInAsia)China’s largest Amazon-like e-store, Jingdong, has just rolled out two new supercharged delivery options in six major cities. The night delivery option means that office workers can buy online up to 3pm and have the items arrive at their home between 7pm and 10pm. Even quicker than that is the new three-hour delivery service.

The two options became available last night, Jingdong tells us, but will only be announced and publicized later tonight. The six cities covered for both options are Beijing, Shanghai, Chengdu, Wuhan, Shenyang, and Guangzhou. More cities will be supported in due course. Extra fees are applied for the speedier 3-hour option only (Update: Corrected this detail).

The three-hour delivery represents what’s likely the quickest delivery option in China.

Jingdong – formerly called 360Buy – has what it calls a “last-mile” courier network of vans and e-bikes of its own, launched last summer, to take items from its city warehouses direct to the door of buyers. That means it’s not reliant on third-party couriers.

A race against Alibaba

Jingdong’s newest move is the latest salvo in its battle against e-commerce giant Alibaba. Its two predominant sites, Taobao and Tmall (the latter of which is actually larger than Jingdong in terms of sorta-B2C market share) are online platforms for vendors, and so the company doesn’t hold stock or have warehouses. That means that Jingdong – like other direct B2C e-tailers, such as Amazon China or rival Suning – has the advantage of being able to ship faster (usually) from city depots.

Elsewhere in the world, Google has tried out same-day delivery on a very limited basis in one area of San Francisco, while Amazon is working towards the same thing across the US. But Jingdong’s six cities, covering over 80 million people, is likely the largest-scale fully-implemented roll-out so far.

China’s total B2C e-commerce sales in 2013 are slated to be worth $177 billion this year, with 270 million Chinese netizens being active e-shoppers.

Thank you. TiA.
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This entry was posted on June 1, 2013 by in COMMERCE and tagged , , , , , , , .

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