Main business profit: JD.com is a typical e-commerce enterprise. Its model is to use pure Internet methods to integrate upstream and downstream, optimize the supply chain, work hard on commodity costs, and strive for profits through the main business of commodity operation;

2. Light assets and fast turnover: B2C relies on network means to broaden consumption channels. JD.com also uses funds on the cutting edge and establishes a powerful information system to support the realization of a large sales scale and efficient operation;

Profit model:

1. Cost control

Online stores save labor costs: JD.com will summarize and calculate hundreds of parameters such as the past sales data of specific products, consumer clicks, tags, paths, browsing times, and stay time according to certain weights to obtain consumption data, maximize the savings in manpower, material resources and funds, and bring more and greater profits to JD.com.

2. Earn the difference between the purchase price and the sales price

Based on micro-profits, the gross profit margin is maintained at around 5%. Provide more value to suppliers and end customers in the industrial chain. It also provides consumers with cheaper and more reliable products by controlling costs.

3. Advertising revenue

Currently, about 30% of JD.com's profits come from advertising, brand promotions, first-time special events and other revenues. ; So far, nearly 80% of mainstream IT brand manufacturers have started direct cooperation with JD.com.

Extended information:

Development strategy:

Liu Qiangdong said in an internal email that in 2017, JD.com Group officially established the strategy of borderless retail and actively transformed into a provider of retail infrastructure. JD.com Group has also moved from "integration" to "integration and openness".

In order to serve the changing needs of customers and the open ecosystem, JD.com's organization needs to become more flexible and agile, and become a building block organization. This structural adjustment is to meet the needs of the strategy.

Liu Qiangdong said that this structural adjustment will bring about changes in three aspects. The first is to allow the related businesses within the three business groups to produce a highly modular synergy effect, truly transforming from a focus on integrated procurement and sales and SKU to a focus on users (customers) and scenarios.

Secondly, authorization will be moved forward to reduce communication costs and decision-making cycles, and quickly respond to and meet customers' personalized needs. "Let those who can hear the sound of gunfire on the front line make decisions" and enhance bottom-up innovation awareness.

Third, it will greatly improve the efficiency of resource use, strengthen refined operations, maximize customer experience, and consolidate future core competitiveness. Liu Qiangdong will also devote more time to paying attention to and developing JD's technology business, and promote JD's resolute transformation to technology.