JD.com has launched its consumer-to-consumer online marketplace, Paipai, after acquiring the site as part of a deal with Chinese investment company Tencent Holdings in March.
Seen as a step up against China’s leading e-retailer Alibaba, JD.com has said it will use its own logistics network for Paipai sellers and will introduce an algorithm to prioritise search relevance over advertising.
“We expect Paipai’s re-launch will help sellers realise higher profit margins through lower marketing costs and bring consumers a superior e-commerce experience, which should help drive expansion of our business,” said vice president of JD.com Kate Kui in a company statement.
“We believe that over time, consumers will associate Paipai with the same traditional strengths as JD.com in the areas of product authenticity, speed delivery and superior mobile experience.”
