The Chinese e-commerce giant has launched Jing Zhi, a new resale platform app.
Sellers can use the platform to host second-hand products and pay a 6 percent commission to Jing Zhi, or sell their used goods directly to JD.com’s AiHuiShou second-hand division.
Currently, products on the new platform skew heavily towards electronics, but there is a small range of luxury, fashion and beauty products available.
Earlier this year, Chinese Investment Bank Shenwan Hongyuan released a report estimating that China’s total 2020 resale market exceeded 1 trillion yuan ($154.78 billion), with the e-commerce resale market reaching 374.55 billion yuan ($57.97 billion).
The latter market is currently dominated by Alibaba’s Xian Yu, along with Tencent and 58.com’s Zhuan Zhuan, these two JD.com rivals combined currently have a 90.9 percent share of the e-commerce resale market.
According to Alibaba’s fourth quarter earnings report, released in May, Xian Yu’s gross merchandising volume (GMV) exceeded 200 billion yuan ($30.95 billion) for the period, up 100 percent year-on-year, with 30 million daily active users.
Chinese consumers are most enthusiastic about mega brands such as Louis Vuitton, Gucci, Chanel, Christian Dior and Hermès, according to consumer data insights released by one of China’s major luxury resale platforms, Plum.