JD.com’s freight train brings China closer to European retailers

Chinese ecommerce giant JD.com has introduced a solution for online retailers looking to sell in China. The China Railway Express is ‘faster than the sea and cheaper than air’, JD.com promises. The first freight full of JD-procured goods from Europe went from Germany to China last week.

The train left the station in Hamburg and traveled ten thousand kilometers to Shaanxi. There, JD operates a major distribution hub for cross-border imports, Internet Retailing writes. The freight carried products such as food and beverages, home furnishings and automotive supplies. It’s expected many of these products will be sold on 18 June, when the company’s annual shopping festival takes place.

35 days faster than sea, 80 percent cheaper than air

The China Railway Express should deliver pan-European goods to China about 35 days faster compared to retailers using sea routes. Also, the train route is 80 percent cheaper than air transport, JD says.

Another benefit is that retailers and vendors won’t have to deal with painful custom procedures. “JD handles every aspect of the freight process from the train station in Germany to the customers’ doorstep in China”, the retail magazine writes.

Train functions as a mobile warehouse

An interesting feature of this service is that the train actually also functions as a mobile warehouse. When the products are loaded onto the train in Hamburg, they can immediately be listed for sale in JD’s online store in China. “This means that consumers can place orders for the products even while they’re in transit, shortening wait times for consumers while further reducing warehousing costs and increasing stock management efficiency for brands and retailers.”