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Investing.com — Shopify Inc (NYSE:SHOP) shares have taken a hit Tuesday, down over 6% following news it has partnered with JD.com Inc Adr (NASDAQ:JD) to make it easier for U.S. merchants to sell to consumers in China.
“A partnership between Shopify and JD.com means that we’re unlocking the world’s largest ecommerce market for merchants by giving them access to one of China’s leading ecommerce marketplaces,” said Shopify.
The company said the new sales channel will open up access for Shopify merchants to JD’s 550 million active customers in China.
Shopify merchants in the U.S. will be able to get started in China in as quickly as three to four weeks, compared to the 12 months typically required.
The deal benefits both parties in that it helps in Shopify’s expansion in China and helps JD become a more global company.
JD will help merchants with onboarding, logistics that handle end-to-end fulfillment from JD’s US warehouses directly to consumers in China, price conversion, and product names and descriptions translation.
The partnership will also see JD.com and Shopify collaborate to “simplify access and compliance for Chinese brands and merchants looking to reach consumers in Western markets.”
“Bringing together two world-class commerce platforms—Shopify and JD.com—is a major step in solving cross-border commerce for merchants,” stated Aaron Brown, vice president at Shopify.
