• JD Worldwide Seller Fees Guide: An Overview

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    Jingdong (JD) Worldwide is the cross-border eCommerce platform launched by Tencent in 2015. With more than 300 million monthly users, JD Worldwide is undoubtedly one of the biggest cross-border eCommerce websites in China.

    With that said, selling online in China is more expensive compared to southeast Asia, and building up brand awareness is crucial at a start.

    If you plan to sell on JD Worldwide, you must understand how much it will set you back in terms of setup and running costs.

    In this article, I explain what setup fees and running costs you have to pay when selling on JD Worldwide. Let’s get started.

    1. Refundable Deposit

    First, you have to pay a deposit before you can start operating the store. This deposit is refundable, but JD has the right to deduct money if any dispute arises between you and a buyer. Simple as that.

    The deposit is generally USD 15,000 but can reach up to USD 30,000, depending on the products you sell. It can also go down to as low as USD 10,000 for products like games and IP commodities.

    To give some examples, below you can find deposits for different product categories:

    • Milk powder: USD 30,000
    • Body care: USD 15,000
    • Shampoo: USD 15,000
    • Watches: USD 10,000
    • Pet staple food: USD 10,000

    Worth mentioning is that the deposits are higher for cross-border sales on JD.hk compared to the local eCommerce website, JD.com.

    The reason is that you don’t need a local Chinese entity for JD Worldwide, which is a risk to JD. Bear in mind that this is a ‘refundable deposit’ and that it’s usually paid back to merchants.

    2. Technology and Service Fees

    JD also charges a Technology and Service Fee which is divided into Sales Commissions and Platform Usage Fee. The commissions are calculated based on your sales volumes stretch from 2% to 8%.

    The rate is multiplied by the sales price + logistics cost. Let’s review both of the fees and examples.

    a. Platform Usage Fee

    The annual service fee is charged by JD as they let sellers use the platform. The yearly annual fee is lower compared to Tmall Global and always USD 1,000.

    On Tmall Global, the fee typically ranges between USD 5,000 – 10,000. Below you can find examples of product categories and the fees associated with them:

    • Children’s clothing: USD 1,000
    • Body care: USD 1,000
    • Kitchenware: USD 1,000

    The fee is paid per store and per year.

    b. Sales Commission

    On top of the above-mentioned fees, you also have to pay commissions to JD.

    The commission is calculated as follows: (Sales Price + Logistics Fee) * X%

    Let’s review an example again for a better overview:

    • Product: Pet food
    • Sales Price: USD 80
    • Logistics Fee: USD 10

    Commission: (USD 80 + USD 10) x 2.5% = USD 2.25

    The commission rates usually range from 2% – 8%. Examples of products and the different commission rates are:

    • Shampoo: 5%
    • Beauty and skincare: 5% + 1.5%
    • Milk powder: 2% + 1%
    • Liquor: 2%
    • Home textiles: 5% + 3%

    As you can see, some products have two different rates added together, referred to as A + B by JD. The product categories that are affected by this ‘A + B rate’ are:

    • Maternal and infant
    • Toy musical instruments
    • Beauty and skincare
    • Personal care
    • Household cleaning/paper products
    • Household appliances
    • Mobile communications
    • Digital
    • Computer & office
    • Food & beverage
    • Pet life
    • Fresh food
    • Wine
    • Home textiles
    • Kitchenware

    Simply put, A is the standard rate and B is a rebate framework rate. Sellers’ quarterly rebate framework fee = Sellers’ quarterly GMV x B.

    If the amount invested by the seller is less than the rate, the seller has to pay the difference within 30 days.

    Keep in mind that the above fees don’t include any duties, taxes, or other financial charges. You will have to pay these fees as a seller.

    3. Tenpay Service Fee

    Tencent owns around 20% of the shares in JD and sellers can receive payments via its payment solution called Tenpay. The same as it goes with Alipay, a transaction fee of 1% applies when using the service.

    When calculating the fee, you simply add the sales price and the logistics cost and multiply it by 1%.

    Let’s take another example for a better overview:

    • Product: Pet food
    • Sales Price: USD 80
    • Logistics Fee: USD 10
    • Commission: (USD 80 + USD 10) x 1% = USD 0.9

    I hope that you found this article useful and understand better about the fees you have to pay when selling on JD Worldwide. For a complete overview of the deposits, running fees, and commissions, simply visit this page.

    I also recommend you check my separate article that explains how you can sell on JD Worldwide.

    FAQ

    Below you can find some commonly asked questions and my replies. If you have any other questions, feel free to drop a comment below or send us an email.

    What’s the difference between JD.hk and JD.com?

    JD.hk is dedicated to cross-border sellers while JD.com is used by local sellers. If you sell on JD.hk, you can stock the products in a bonded warehouse in mainland China or fulfillment center in Hong Kong, for example.

    You can then ship the products directly to end customers in mainland China.

    The benefits here are that you don’t have to undergo lengthy and costly registrations with Chinese authorities. Generally, registering with the customs and CIQ is enough, which is easier compared to traditional sales.

    What is the market share of JD in China?

    JD has a market share of around 25% in China, Tmall has a market share of around 56%. Other new marketplaces such as Pinduoduo grasp increasingly more market shares from these eCommerce giants.

    What makes JD Worldwide interesting for cross-border sales?

    JD Worldwide is one of the biggest cross-border eCommerce marketplaces in China. However, it’s generally easier to get accepted by the website. Besides, the setup fees and running costs are lower compared to Tmall Global.

    The competition is lower on JD Worldwide compared to Tmall Global as there are limitations for certain product categories.

    What are the main products sold on JD?

    Some of the top-selling products on JD include:

    • Electronics & Home Appliances
    • Automotive Parts
    • Food, Beverages, and Alcohol
    • Fashion & Apparel
    • Digital Products
    • Cosmetics & Personal Care Products

    It’s also worth mentioning that JD has more male buyers compared to Tmall.


  • Disclaimer: The content on this website is provided for general information about exporting products to Asia, e-commerce platforms, logistics, regulations, taxes, and other related topics. However, we don't guarantee that we keep the content up to date or that it's free from error. We do make mistakes from time to time. We never provide legal advice of any sort.

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