In a preemptive move from China’s most massive event for online shopping that has reaped sales of $1.6 billion, last year, for the firm, Chinese e-commerce gargantuan JD.com Inc stated that it had activated its warehouse and logistics initiative.
As JD.com, at the current moment, maintains 97 warehouses and 7 fulfillment centers in 39 cities, the initiative is part of an expansion initiative for additional storage and processing facilities in China which costs $1 billion.
Said facility will assist order processing through the next month, on Singles’ Day shopping event, that starts the 1st of November and creates a huge upturn in online shopping as people purchase presents for their single friends and relatives.
Having acquired $1.78 billion on the Nasdaq last May, JD.com has stated in its IPO document that in order for it to expand fulfillment infrastructure it would spend around $1 billion to $1.2 billion over the span of 3 years.
At Friday’s close, JD.com’s share is at $25.07. Since its listing, the stock has increased to around 20 percent.