JD.com has been in business for 14 years since 2003. The annual financial report shows that JD.com has been losing money, but people can't help wondering why JD.com has not gone bankrupt despite losing money every year? According to Qi Ge's analysis over the years, JD.com will start financing every time it lacks funds, so it can persist until now. The reason why JD.com can successfully raise funds is its advanced operating model, good user experience and industry status second only to Alibaba.

In fact, JD.com has been in a state of loss and is inseparable from their choice of operating model. A lot of money has been invested in building its own logistics system and warehouses, which is also the difference between Taobao and JD.com. If e-commerce is not doing well one day, then Taobao will be an empty shell, while JD.com still has its own foundation and resources that can be used.

1

Burning venture capital money

From the early days of JD.com until its listing, it was all supported by venture capital. The main purpose of venture capital was to exchange huge funds for JD.com's growth rate. By burning money to subsidize, doing everything possible to expand the scale, and using price wars to kill competitors.

From a certain perspective, JD.com is lucky, standing firm for many years. And it has maintained several times growth every year, so that its position in the industry is second only to Taobao. Therefore, even if it suffers huge losses every year, it can still be favored by many venture capitals.

2

Using investors' money to go public

In 2014, JD.com finally went public. After ringing the bell at the Nasdaq in New York, JD.com began to burn shareholders' money to expand. At this time, domestic e-commerce is still developing rapidly. Through a series of decisions, JD.com's sales growth rate is still unmatched in the industry, which makes American investors see unlimited good prospects from JD.com, and begin to continuously transfuse blood to JD.com, allowing it to continue to lose money. After several years of development, JD.com's transaction scale has reached hundreds of billions of yuan, and it has enough capital to play cash business.

3

Playing with cash business

A careful observation of Suning and Gome will show that although the profit from selling goods is extremely low, they can still become stronger and stronger. The reason is that its scale is large enough to occupy "sales funds" for free and play with cash flow business, which is also the ultimate secret of all large retailers.

Simply put, you have a batch of goods that need to be sold on JD.com. Your price is 2,000 yuan each, but JD.com sells it for 1,500 yuan. In advance, JD.com will tell you that I will help you sell this batch of goods, but I will give you the cash in half a year. Then JD.com will use this half year to invest with this money and use the money earned from the investment to fill the gap. It seems that JD.com lost 500 on the difference in each price, but in fact it used the goods sold at a low price to obtain a large amount of funds that can be used in the short term.

So JD.com can use these funds to legally invest in securities, real estate, etc., which can not only optimize financial statements, but also make profits and reduce losses.

It has to be admitted that JD.com has played too many tricks. Despite the losses, someone still pays for it. This keeps it big and unbreakable, and eventually finds its own shore with its "financial" capabilities.