JD.com relaunches marketplace

China’s largest online direct sales company JD.com is stepping up its fight against rival Alibaba.

It has relaunched consumer to consumer marketplace platform (C2C) Paipai, which has been enhanced to reduce marketing costs for sellers and prioritises search relevance over advertising, while providing the option to complete orders through JD.com’s own nationwide fulfillment network.

Kate Kui, VP of JD.com and president of Paipai, says the new Paipai will provide consumers access to same-day and next-day delivery and after sales service that they already enjoy with JD.com.

“We expect Paipai’s re-launch will help sellers realise higher profit margins through lower marketing costs and bring consumers a superior e-commerce experience, which should help drive expansion of our business,” says Kui.

The company says the improvements to Paipai’s search function include an algorithm that prioritises sellers based on factors such as buyer feedback, variety of relevant products sold and other factors that aim to provide a better user experience.

As with JD.com marketplace, Paipai sellers will also have access to JD.com’s self-operated logistics network and finance tools.

Paipai has also begun implementing improved anti-counterfeiting measures to ensure the authenticity of products sold.

“We believe that over time, consumers will associate Paipai with the same traditional strengths as JD.com in the areas of product authenticity, speedy delivery and superior mobile experience,” said Kui.

Over the next three to five years, Paipai will prioritise investment, with a focus on building the strength of its brand, user experience and overall offer.

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