JD.com lures overseas Chinese shoppers with faster shipping in rivalry with Alibaba

JD.com is launching five-day international shipments for customers in the US, Japan and Singapore, as the Chinese e-commerce giant fights against rivals like Alibaba Group Holding, Shein and Temu for a bigger slice of the overseas online shopping market.

Customers in those countries, who order from branded shops run directly by JD.com on its platforms, can now receive their purchases in as little as five days, while base shipping fees in the US have been slashed by half to 58 yuan (US$8.14), the Beijing-based company announced on Wednesday.

JD.com’s overseas shopping services target mainly Chinese users living abroad, the firm said.

The move comes as the world’s second-largest economy struggles with souring consumer sentiment. As domestic shoppers keep their purse strings tight, Chinese platforms – from PDD Holdings’ budget shopping site Temu to Alibaba’s global marketplace AliExpress – have turned their focus internationally, following in the footsteps of China-originated fast-fashion app Shein.

Alibaba owns the South China Morning Post.

Expedited delivery has emerged as a crucial factor for cross-border e-commerce operators striving to boost orders.

As part of its latest service upgrade, JD.com offers three shipping options, including express air, standard air and sea freight. The latter two cost less but take up to 15 and 30 days, respectively, for a parcel to arrive.

The company is also offering free shipping on eligible orders of a selection of 400,000 products ranging from electronics and small appliances to household items, apparel and books.

US customers, for example, can qualify for free standard air shipping for orders above 618 yuan, while shoppers in both the US and Japan are entitled to free express air shipping for buying one of a list of selected products.

A PDD executive said in a post-earnings conference call this week that the firm’s revenue and profits would inevitably decline as economic growth slows.