JD.com Meets Coronavirus Challenges by Way of Its In-House Delivery Network

Originally founded in 2004 by business leader and entrepreneur Richard Liu, JD.com is more than just another online retailer. Not only is it the largest e-commerce organization in China, but it's also the country's largest Internet company by revenue. It's a name that is trusted by more than a billion people daily and, over the years, the organization has worked hard to provide essential items and other necessities to those who need them by way of same and next-day delivery solutions that are second-to-none in this industry.

While the current COVID-19 pandemic has certainly created several challenges in recent months, it's paved the way for an incredible amount of innovation and ingenuity, too. Case in point: JD.com is doing its part to confront Coronavirus issues head-on by way of its trustworthy and reliable in-house delivery network.

Modern Problems Demand Modern Solutions

JD.com's in-house delivery network is so strong that CEO Richard Liu says the company is forecasting double-digit sales growth in the first three months of 2020. This is in stark contrast to some of its largest rivals, which appear to be (understandably) struggling during the epidemic.

A lot of other organizations are facing difficulties due to a shortage of available couriers at their various delivery partners located around the country. JD.com, on the other hand, maintains a fully self-operated network that employs roughly 150,000 people. So not only were they not set back in any way during the extended Chinese New Year holiday, they were able to ramp up their operations in a variety of ways.

In addition to continuing to meet the needs of customers with the delivery of essential items, JD.com has also spared no effort in the fight against COVID-19 since late January. Richard Liu said that "our leading supply chain and logistics network has been called upon to address unmet needs across China." He continued, saying that "we've been ensuring consumers' livelihoods while partnering with public institutions to ensure access to emergency supplies," among other efforts.

To speak to that last point, one only needs to examine JD.com's efforts in Hubei - the epicenter of the outbreak. Here, JD.com has been working diligently to provide medical supplies to relief organizations who themselves are keeping these items constantly in stock at hospitals throughout the area.

Current CFO Sidney Huang even went as far as to say that "based on the past two months of preliminary results, we expect our net revenues to continue growing in double digits in the first quarter." He said that this was thanks in large part to the resilience of the company's unique business model, along with the fact that user activities on JD.com platforms has accelerated in recent weeks.

JD.com has long been the partner of choice for both local and global brands who want to reach Chinese consumers online in the most effective and organic ways possible. The fact that the strength of the company's in-house delivery network has allowed them to continue to do this during an unprecedented global pandemic is amazing - and it's a lesson that a lot of similar organizations can learn from all across the world. Not only has JD.com been able to attract and retain users during this time, but those users will almost certainly have enhanced loyalty, too.

Based on that, it's easy to see where the confidence comes from that the in-house logistics network will allow JD.com to maintain its current level of success during the Coronavirus outbreak - and how it will likely come out all the better for it once things return to normal in the future.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes