Chinese e-commerce giant JD.com launches European challenge to Amazon after Indonesia exit

JD.com, China’s largest e-commerce platform, has launched an online shopping platform in Europe. The platform, named Joybuy, represents the Chinese e-commerce giant’s effort to undermine Amazon’s dominance in Europe.

Joybuy will serve as JD.com’s brand in international markets. JD.com has opened the platform in six European countries, including the UK and Germany, offering rapid delivery and quality products. To support these commitments, JD.com has established warehouses and local logistics networks.

JD.com’s strategy differs significantly from fellow Chinese companies Alibaba and Pinduoduo. Alibaba’s AliExpress and Pinduoduo’s Temu offer cheap products shipped directly from China.

In China, JD’s business model, which relies on extensive logistics networks and fast delivery speeds, has successfully positioned it as the platform where Chinese consumers purchase global branded products, particularly Apple’s iPhones.

JD promises same-day delivery in Europe for orders placed before 11:00 am and free shipping in the UK for products priced above £29 on Joybuy.

Joybuy Chief Executive Matthew Nobbs in the UK emphasised that Joybuy operates as a retail platform, not a marketplace. This strategy is expected to help JD catch up with Temu and AliExpress’s success in global markets.

“We are not conducting de minimis business. We are a retailer, primarily for brands—that is the core of what we do,” Nobbs told CNBC International.

The term de minimis refers to import regulations in many countries that exempt low-value goods from customs duties. Temu is known to exploit this exemption by directly importing low-value products from China to its destination countries.

JD.com previously operated in Indonesia through a joint venture called JD.ID. However, the JD.ID e-commerce and logistics platform was shut down in March 2023.