According to informed sources, while expanding their own merchandise categories on Google’s platform,JingdongIt will also help the search giant recruit Chinese sellers and provide technical support, making it easier for them to sell products to American consumers through Google.
This is part of Google’s efforts to broadly attract sellers who want to increase their choice of products for their online marketplace. Consumers can purchase goods directly on Google without having to go to a third-party website to purchase after searching for the product.
Google’s previous efforts in the e-commerce sector have not achieved much, and the market response is not warm. Amazon, which accounts for one-third of the US e-commerce market, is also eating into Google’s search and advertising business. According to a survey conducted by Adeptmind in May 2018, 46.7% of US Internet users searched for products on Amazon. The percentage of users who searched for products first was 34.6%.
According to data from e-commerce research firm Marketplace Pulse, Google's Google Shopping online platform currently has 2,000 stores, including large chain stores such as Costco and Target. Chinese sellers can use the Google Shopping Actions service to open stores like other retail chains, or they can choose to sell with JD.
More cautious than Amazon
When recruiting Chinese sellers, Google took a cautious approach and made more demands than other e-commerce platforms such as Amazon and Wish. Google requires Chinese merchants to be US registered entities or at least capable of shipping from within the United States in order to guarantee a reasonable delivery time, as it may take two to three weeks for the product to be shipped directly from China. Jingdong and other Google partners are actively inviting Chinese sellers to join, as well as reviewing the sellers who applied. The seller submits the materials to Google for review and final decision. According to people familiar with the matter, Google is actively looking for sellers in the health, home and garden categories.
“It may be more sensible for a Chinese company to deal with Chinese sellers.” Market Pulse founder Juozas Kaziuk?nas pointed out, “It is clear that JD has more experience in this area. They have established local business partnerships. They already have a wealth of local experience."
Chinese sellers are playing an increasingly active role in the US e-commerce market. According to Marketplace Pulse, at least 40% of the top 10,000 sellers in the US are Chinese sellers. If there is no business location in the United States, many Chinese sellers will choose to use Amazon's logistics service Fulfillment by Amazon, but Google is unlikely to invest in logistics.
For Chinese sellers, selling on Google is not easy now. Jingdong may be in its futureserverOpen a shopping website to make Chinese sellers more accessible. Those sellers who do not have the ability to sell directly on Google can work with JD.com's own stores to use JD's logistics services and warehouses in the United States.
Google is not willing to confirm the details of its cooperation with JD. Last year, the two companies said that the goal of the cooperation was to provide a “beneficial, personalized and seamless shopping experience”. Jingdong also declined to comment. The company began selling products on Google under the brand name Joybuy earlier this year.