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.
The firm also stated that as part of the initiative, a warehouse in Shanghai has begun its operations. The facility will have a final capability of sorting out 16,000 packages per hour.
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.