①Model: Procurement and sales model (merchants are responsible for supply and cooperate with operations. JD procurement and sales dock operations, and JD is responsible for delivery and distribution)

②Deposit: Same as the cost of JD POP store, determined according to the category (just a guarantee to prevent merchants from violating regulations, please refer to the description in the previous settlement system overview for details)

③Gross profit: determined on the premise of ensuring the profit of merchants, with a gross profit margin of about 20%. Among them, the gross profit margin is: (retail price-supply price)/retail price

④Product pricing: Merchants only need to provide the supply price, which includes the product cost and merchant profit; the selling price is the supply price plus JD's gross profit, and the supply price must be reasonable.

⑤Distribution: Merchants need to arrange logistics to deliver the goods to one of the eight warehouses closest to the product location; JD is responsible for transshipment, and the cost is borne by the merchant, and a "Transshipment Fee Agreement" will be signed (transshipment means sub-warehouse, which is distributed to all JD warehouses, which may not be just the eight warehouses); storage fees and delivery costs to consumers are borne by JD.

⑥Inventory: For seasonal products with a shelf life, in the months before the end of the season or expiration, the purchasing and sales will arrange for merchants to participate in some activities that can both sell and promote the products, so as to minimize or even eliminate losses.

⑦Settlement

Payment: After the merchant provides the invoice to JD.com, JD.com will pay the merchant, and the gross profit will be directly deducted from the payment.

Invoice: Special VAT invoice, 17 points. After the tax reform, it should be adjusted to 13 points.

⑧After-sales: If the return is due to product quality problems, the merchant shall bear the loss, otherwise JD.com shall bear the loss.