Google expands its shopping clout with JD.com partnership

JC Torres - Jun 18, 2018, 2:50 am CDT
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Google expands its shopping clout with JD.com partnership

Still don’t think Google is out to get Amazon? Just take a look at its most recent “strategic partnership”. The search giant has just inked a deal with one of China’s biggest e-commerce companies, JD.com. While most of what ‘s involved with the transaction is buried in marketing-speak, one thing is clear: Google wants in on JD.com’s empire, which practically means penetrating markets still free from Amazon’s grasp.

JD.com and Alibaba are two of the biggest names in the e-commerce arena in Southeast Asia, but JD.com wants to expand its empire. Google, on the other hand, wants to sink its fingers deeper into the shopping market, both in China and elsewhere. Rather than each giving it their best shot, they decided to team up and join forces to fight a common foe.

Google is investing $550 million JD.com, which is just small change compared to the Chinese company’s valuation. The partnership will see JD.com’s experience in supply chains and logistics work together with Google’s data and reach. Together, the two plan to create an online shopping experience to rival Amazon.

Naturally, the specifics of the partnership are still under wraps save for one. JD.com will now be one of the privileged retailers to be part of Google Shopping. This is part of JD.com’s goal of reaching more customers through Google. How it will help Google, in turn, will be something to see.

The strategic partnership with JD.com is just one of the recent moves by Google to invest in Chinese companies. Since it has had difficulty making its presence felt directly, it is instead building it up through partnerships with the likes of Tencent and even JD.com rival Alibaba.


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