Earnings

JD.com Touts $25.7B Third-Quarter Net Revenues, Sales Surge In Indonesia

JD.com

JD.com, sometimes referred to as the Amazon of China, saw third-quarter 2020 net revenues surge to $25.7 billion, up 29 percent from the same period the previous year, according to a Monday (Nov. 16) announcement. The increase comes amid a pandemic-boosted surge in eCommerce.

For example, JD.ID, an Indonesian eCommerce subsidiary of JD.com, saw a 1,300 percent growth in year-on-year sales volume during its latest promotional campaign. In a corporate blog post, JD’s Martin Li said the campaign, which went from Nov. 9 to 11, took place as Indonesia is still afflicted by the pandemic.

He said that “average user spending increased by 450 percent compared with the same period of last year. Meanwhile, the number of products sold jumped by 150 percent.”

“In the midst of the pandemic situation, people are making the best use of the momentum of the online shopping festival, such as shopping for daily necessities and fulfilling lifestyle needs,” said Mia Fawzia, marketing chief of JD.ID.

JD said best-sellers included groceries, healthcare products, maternal and child products, household products, smartphones and tablets.

The blog post said JD.ID is “optimistic” that it can achieve higher sales targets, in particular as it holds sales events leading up to Dec. 12. In both Indonesia and China, Dec.12 shopping events are a big time for sales.

In its earnings announcement, JD.com reported that net revenues from the sales of general merchandise for the third quarter of 2020 hit $8.6 billion, an increase of 34.8 percent from the third quarter of 2019. In addition, JD.com said, net service revenues for the third quarter of 2020 hit $3.4 billion, an increase of 42.7 percent from the same quarter the previous year.

JD.com bills itself as the No. 1 direct online seller in China. It also operates its own logistics and delivery network, which carries goods for other companies as well.

“We delivered robust topline growth across all of our product lines as well as record profitability,” Sandy Xu, chief financial officer of JD.com., said in the announcement. “With solid profitable growth as our basis, we will continue to invest in technology and infrastructure.”

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