"All-Out Wallet Opening" JD.com Lowers Free Shipping Threshold for the First Time in 8 Years

Chinese major e-commerce company JD.com has significantly lowered its free shipping threshold, which it had maintained for over eight years, thereby reducing the barrier to purchase. This move is interpreted as a response to sluggish domestic demand in China, leading to slower sales improvement and triggering a price competition in services.

On the 23rd, China’s First Financial Daily reported that JD adjusted the free shipping limit for self-operated products from 99 yuan (approximately 18,100 KRW) to 59 yuan. Paid members, known as JD Plus members, can now enjoy unlimited free shipping benefits, whereas previously it was limited to a certain number of times. The revised standard took effect from midnight on the same day.

[Image source=Yonhap News]

The First Financial Daily stated, "Consumers can receive free shipping on JD.com for self-operated products when the order amount exceeds 59 yuan, excluding books," adding, "The free shipping threshold for books remains at 49 yuan." JD.com’s free shipping standard had been maintained at 99 yuan for nearly eight years since 2016. This is the first time JD has lowered its free shipping threshold.

The media outlet further noted, "JD.com has been pursuing a low-price strategy since early this year, providing various subsidies and services such as double compensation for high-priced products," and assessed, "Considering the recent reduction in the shipping threshold, JD.com is expected to continue its low-price competition."

Xu Lan, CEO of JD.com, emphasized during the recent Q2 earnings conference call, "We have focused on low prices not only in the e-commerce platform but also in the retail sector," adding, "Cost efficiency and experience are core business philosophies."

According to the company’s Q2 financial report, JD’s revenue in the second quarter was 287.9 billion yuan, an increase of 7.6% year-over-year and 5.4% compared to the same period last year. Operating profit was 8.3 billion yuan, more than double the 3.8 billion yuan recorded last year.

This content was produced with the assistance of AI translation services.