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JD.com: Helping Offline Stores get More Sales

January 5, 2019 by Tagged with:
Posted in: Financial AdviceFinancial Expert

Due to the fierce competition and reduced traffic, the traditional bookstores have been experiencing tough times. In China, the traditional bookstores are getting help from JD.com. The firm is the largest e-commerce store in China with an online bookstore. The company has decided to lend a helping hand to the offline bookstores. The company follows retail as a device strategy that has seen it help several companies in the consumer goods and even restaurants. It is using its technology to modernize the supply chain, which has enabled the offline stores to get more sales.

An example of a bookstore that has benefited from Jingdong assistance is the Tangning bookstore. The bookstore partnered with JD.com in 2017 and it has seen Tangning reduce the labor costs since it sources inventory from the e-commerce store. There have also been decreasing days in delivery. As a result, the company’s sales grew by 30%; it also enjoyed an increase in profits by 17% in the same year. The turnover of the company has also reduced to 220 from a year. Thanks to the JD.com’s data analysis, Tangning now knows the customers buying behavior and only provides books that are requested by its customer base.

The founder of the Tangning believes that e-commerce technology is a sign of bright future for the company. Given that offline stores are unable to stock every book that customers need, Tangning bookstore can now allow customers to scan the QR codes to books they do not find on the shelves. The books are then delivered within 24 hours from the e-commerce store. JD.com has used its big data and technology as well as its supply chain and inventory to help offline stores make more sales. Jingdong’s strategy has also helped restaurants such as Wang Shun Ge. The restaurant has managed to cut down on its delivery costs by 50%. It has also been able to ship products faster resulting in satisfied customers and more sales. JD.com is the biggest internet company in China by revenue. The company sets standards in e-commerce sector by providing authentic and quality products and fast delivery.