Jingdong must act in a manner that is less inefficient or other companies such as Amazon may move in slowly and take up the market share. Jingdong executives will see that the behemoth that is Amazon, has lately been doubling down on its plans to stop depending on third-party shipping services. This means that Amazon, a competitor of Jd.com will now further place themselves as a necessary component of shipping infrastructure. Furthermore, Amazon will seek to replace third parties even when they come in the form of the United States Postal Service (USPS). It is certainly a big move, as it indicates that Amazon intends to stick around for the long haul. Furthermore, it shows that the company will continue to build infrastructure just like Jd.com.
For that, the e-commerce behemoth has already taken a few steps to make itself more self-reliant than any other retailer in the U.S. One of its most notable initiatives has come in the form of launching the Amazon delivery and packaging program in June 2018, which provided grants of up to $10,000 to individuals willing to start delivery businesses that catered solely to Amazon. The online retailer is now offering the same opportunity to its employees to entice them into quitting their job and start a business of their own – complete with three months’ worth of paychecks.
That is all offered for them to become Amazon delivery partners, and run the aforementioned shipping operations for the firm. But that’s not the only step that has been taken by Amazon to make shipping a part of its core operations. Apart from making strides in finding new business models, the retailer has recently made significant improvements in terms of packaging processes. As such, it is up to these executives at Jd.com to do their respective measures to counteract issues that may take place with the added expansion.