Why is JD.com more valuable than Tao? There are two main reasons. The first is that JD.com’s logistics costs are too high, and the second is that JD.com is a self-operated e-commerce company. JD.com’s logistics costs are basically the highest in the industry

In the domestic e-commerce industry, JD’s logistics costs are basically the highest. On the one hand, JD.com has spent a lot of money building its own logistics, and on the other hand, in order to provide a better user experience , JD.com had to improve its transportation speed, which also greatly increased logistics costs. For example, you can transport one express truck at a time, but you have to transport even if you don't have one truck. In order to improve timeliness, transportation costs will inevitably increase.

JD Logistics adopts a "fleet warehousing" model. It costs money to buy trucks, and it also costs money to buy land and build warehousing. In short, this is a huge investment, which has led to JD's logistics costs for a long time. All have been invested in greatly improving. At the same time, JD.com's logistics has not yet completed its complete domestic layout. It still needs to build more regional warehousing centers and regional fleets. The cost cannot be reduced in the short term.

At the same time, JD Logistics basically only serves JD e-commerce. Although JD has opened JD Logistics last year, the effect is not good, and JD’s advantages of open logistics are no longer high, and the price is high. Speed ??does not have an advantage either. JD.com’s logistics experience relies on warehousing. Without warehousing, JD.com has almost no advantage if it is purely transportation. Especially compared to SF Express, a pure logistics company with 59 cargo planes, the gap between JD.com and JD.com is obvious. Jingdong is a self-operated e-commerce, while Taobao is a platform e-commerce.

The essence of platform e-commerce is that I create the platform and the brand opens the store. The main role of the e-commerce platform is supervision. Self-operated e-commerce essentially sells goods on its own. JD.com is equivalent to having one more dealer at the brand manufacturer and user level. One more link is equivalent to one more person making money, and the price will naturally go up.

Of course there are many small and medium-sized merchants on Taobao, but countless small and medium-sized merchants actually dilute the risks. JD.com is a self-operated e-commerce company. Self-operated e-commerce companies are responsible for all risks themselves, and JD.com is responsible for after-sales service.

This is even more obvious for big brands. In order to increase sales, some small Taobao sellers have no choice but to sell at lower prices and make less money.

There is also a famous saying in the industry that JD.com has a lot of second-hand products, while Taobao has a lot of fakes. Once you know the rules of each platform, you will know why. Each platform has its own advantages, the key is that you have to use it smoothly.