- JD.com (JD -4.5%) and Vipshop (VIPS -4.1%) haven't responded well to Alibaba's FQ3 revenue miss, which stemmed from a sharp Y/Y drop in the Chinese e-commerce giant's monetization rate
- The decline was due to a major shift in transactions to mobile devices, where monetization rates are lower. JD received nearly 30% of its Q3 fulfilled orders from mobile devices, and Vipshop got 57% of its Q3 GMV from mobile. However, unlike Alibaba, both companies get the bulk of their sales from directly fulfilling orders from consumers, rather than acting as a middleman.
- The NYT recently took a look at JD's big investments in its fulfillment and logistics infrastructure, done with the goal of creating a competitive advantage in a country where fast/reliable long-distance delivery can be a challenge.