JD.com Grows Orders by 41% and Customers by 37%, Fulfillment Costs Rise by 39% YoY in Q2

The highlights from JD.com‘s Q2 2017 numbers:

  • Orders rose by +41% YoY
  • Customer accounts increased to 258.3 million (+37% YoY)
  • Mobile orders now make up 80%, an increase of +42% YoY

More at China Internet Watch:

JD’s GMV for Q2 2017 increased by 46% to 234.8 billion yuan (US$34.6 billion) from 160.4 billion yuan in Q2 2016. Fulfilled orders in Q2 2017 were 591.2 million, an increase of 41% from 418.9 million in the same period in 2016. Fulfilled orders placed through mobile accounted for approximately 80% of total orders fulfilled in Q2 2017, an increase of 42% compared to the same period in 2016.

Its annual active customer accounts increased by 37% to 258.3 million in the twelve months ended June 30, 2017 from 188.1 million in the twelve months ended June 30, 2016. As of June 30, 2017, JD.com operated 335 warehouses covering an aggregate gross floor area of approximately 7.1 million square meters in China.

JD.com had approximately 130,000 merchants on its online marketplace, and a total of 125,835 full-time employees

Unsurprising for everyone paying attention, JD.com’s logistics expansion in China and its competition with Alibaba prove to be costly. Business Insider:

JD.com reported its Q2 2017 results yesterday, with net revenue increasing an impressive 44% year-over-year (YoY) to 93.2 billion yuan ($13.7 billion), while gross merchandise volume (GMV) grew 46% to 234.8 billion yuan ($34.6 billion).

However, the Chinese e-commerce giant took a net loss of 496 million yuan ($73 million) in the quarter, after reporting a profit for the first time since its 2014 IPO in Q1 2017. […]

Fulfillment expenses, including costs from warehouses and deliveries, increased 39% YoY to 6.4 billion yuan ($.9 billion). Some of this bump likely stemmed from investments in new warehouses, which Sidney Huang, JD.com’s CFO, warned about in May.

​Also, marketing costs increased sharply:

Marketing costs increased 63% YoY to 4.1 billion yuan ($.6 billion)

This is probably going to increase further as JD.com expands outside China and has to rely on cooperations for the Chinese mobile Internet.

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