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CCTV reveals 618 logistics and distribution: How JD.com will break the situation

2017-06-21

  The 618 e-commerce war has just come to an end. According to official data, JD.com sold more than 700 million items during the 618 period. With such a large amount of parcels, the logistics pressure behind this can be seen. It is not only e-commerce that faces logistics pressure, but also traditional supermarkets face the problem of high logistics costs. Logistics statistics from China Logistics Information Center show that the proportion of total social logistics costs in my country currently accounts for 18.0% of GDP, which is about 9.5 percentage points higher than the United States and Japan, and about 6.5 percentage points higher than the global average.

CCTV reveals 618 logistics and distribution: How JD.com will break the situation

  Recently, a report by CCTV Finance Channel at Walmart attracted the author's attention. The report said that Walmart is cooperating with JD.com to reduce end-of-term delivery costs through the platform provided by the latter and the mobile shared logistics delivery model. Song Yingfa, a Dada deliveryman who serves JD.com, said in an interview with CCTV reporters that his current personal income has increased from the original 4,000 yuan to the current more than 10,000 yuan.

  Regarding the special node of 618 , CCTV Finance’s focus on the cooperation between Walmart and JD.com’s home delivery actually illustrates two points. One is to express its focus on the high cost of the logistics industry, and the other is to pay attention to the way of reducing the cost of supermarkets and even social logistics based on the mobile terminal shared logistics model.

  Completely get rid of the logistics cost dilemma, JD.com’s three major retail empowerment has become the most needed supermarkets at the moment

  For fresh food e-commerce and supermarkets, the method to get rid of the logistics cost dilemma must be based on the model. In this way, JD.com has rich retail empowerment methods that should be what fresh food e-commerce and supermarkets need most at the moment.

  1. Traffic empowerment

  The huge number of users is JD.com’s positioning of traffic empowerment. Since JD.com’s development has developed, it has more than 30 million users on the platform. For supermarkets, it is not a day to gather such a large number of users. The supermarkets that settle in JD.com’s can "save and enjoy the benefits" and use huge traffic to increase their sales revenue and user stickiness.

  In addition, with the help of nearly 240 million active users of JD.com, the high exposure rate will inevitably radiate the products of supermarkets and fresh food e-commerce from the region to the whole country. In other words, JD.com’s traffic empowerment will break the embarrassing situation of supermarkets hitting the wall with “online”, connect online and offline, and form an integrated integrated platform.

  2. Efficiency empowerment

  In addition to empowering traffic, JD Home Delivery also empowers the entire consumption process with amazing efficiency. Improving efficiency is to save yourself and users' time, so JD Home Delivery can do more.

  Specifically, JD.com will empower efficiency from two aspects. First, through the implementation of the preliminary solution, JD.comcom can complete order allocation as quickly as possible after users place an order; second, during later delivery, Dada's 3 million part-time terminal delivery staff will receive the most suitable order under the system's early efficient distribution strategy, further speeding up JD.com's delivery efficiency.

  Ultimately, through efficiency empowerment, JD.com will bring complete solutions and logistics distribution systems to fresh food e-commerce and supermarkets, thereby reducing the end logistics costs by more than 30%.

  3. Operational empowerment

  Simply put, JD.com’s understanding of operational empowerment is: entering is a customer. Therefore, for fresh food e-commerce and supermarkets, JD.com can gather a high-loyal fan base for it and achieve the long-term operation of the e-commerce platform in a short period of time.

  In addition, JD Home Delivery will recommend supermarkets and fresh food e-commerce products for online users, presenting promotional information to consumers in real time, and completing the most direct and effective information push. In other words, through JD.com’s home delivery app, traffic users will naturally drive the sales of fresh food e-commerce and supermarkets on the platform, thus bringing considerable profits.

  "Even merchants like Walmart and Yonghui have very large stores, each store is at least a few thousand square meters, or even tens of thousands of square meters. Today, JD.com Delivery can contribute 10% of the sales of many of them." Dada-JD.com Delivery CEO Kuai Jiaqi recently showed JD.com Delivery's outstanding achievements, which also shows that Dada-JD.com Delivery's model has brought incomparable benefits to many supermarkets.

  Of course, this is also due to JD.com’s all-round empowerment strategy, and the savings of 30% terminal logistics costs are already considerable.

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