How JD inspired me

Digitization and technology-based is the most important way we chose to operate our market. Science and technology change our daily life, it makes our life more simple and comfortable. On the account of people don’t want to drive out or walk out the door to purchase commodities, those things expend a mass of time in their life, therefore, online shopping and logistic services gradually becoming the core shopping way of customers. In this case, a number of online shopping platform and logistic services company has been established. A few of company become the leader in the market. Such as Amazon, eBay, UPS. What I want to introduce today is a similar company but with autologous characteristics. It names JingDong.

Here is the link about JD logistic:

in this video, Jingdong reveals its own unique logistic system. As we know, the online shopping platform always works with the logistic service company, when customer purchase their product in the online shopping platform, the platform backstage management system will confirm the order as soon as possible, and then the warehouse will send the commodity to the logistic company for distribution. This kind of business model, we called it B2B (Business to Business), nonetheless, Jingdong create their own logistic system, which is called JD logistic, and this business model is B2C (Business to Customer). We all know the current logistic system is perfect. It takes a lot of manpower, material resources, and financial resources to build the logistics system, that’s why a mass of online shopping platforms choose to collaborate with logistic companies. But why Jingdong still select establish their own logistic system?

First: logistics is the focus of online shopping.

We all have experience of online shopping, we all know, since the merchant shipping as a consumer, will be very concerned about the logistics and to some extent, the price is almost the case, you can choose logistics faster online platform, from the respects, Jingdong must set up their own logistics system, because of its own logistics system, The discourse power of logistics is in their own hands, they will not be controlled by others.

Second, the cost of logistics service is high.

From the point of view of e-commerce platform, to make logistics companies achieve their own conditions, is very difficult, especially in the logistics control, the cost is very high, not only have bargaining cost, decision-making cost, communication cost, supervision cost, these costs must be set up their own logistics system, although said his team was trouble, the cost is much lower than purchasing logistics services from outside.

Third, logistics is the absolute right to speak.

From the point of view of e-commerce platform, who mastered the logistics, who have the power, because if you don’t give force logistics, there will be a lot of customer complaints, even resulting in the loss of a large number of users, the users can bring huge profits to online shopping platform, in order to protect their own interests from losses, Jingdong must self-built logistics system.

I think JD’s decision to create a logistics system inspired me. We all get used to staying in our comfort zone, the same as the company or platform. Staying in your comfort zone actually gives us benefits, but it is hard to improve ourselves. It takes huge courage to leave the comfort zone. Jingdong did it, even if it consumes its vast manpower and money, therefore, Jingdong becomes one of the biggest companies in China. On June 18, 2020, Jingdong was officially listed on the Hong Kong Stock Exchange with the stock code 9618. The first day of listing in Hong Kong opened 5.75% higher, at 239 Hong Kong dollars, with a total market value of 738.6 billion Hong Kong dollars, equivalent to 95.2 billion US dollars.

What I want to tell you from this story is that sometimes we need the courage to change ourselves. It’s hard, but we’ll be better people after we go through it.

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