CHINESE e-commerce giant JD.com Inc. has launched its warehouse and logistics initiative, ahead of China’s biggest online shopping event which produced sales of US$1.6 billion for the firm last year.

    The initiative is part of a US$1 billion push to expand storage and processing facilities in China, where JD.com presently operates seven fulfillment centers and 97 warehouses in 39 cities.

    A Shanghai warehouse has started operations as part of the initiative, the firm said in a statement yesterday. The facility eventually will be able to sort 16,000 packages an hour.

    It will help process orders during next month’s Singles’ Day shopping event, which begins Nov. 1 and generates a huge spike in online shopping as people buy gifts for single friends.

    “This cutting-edge, highly automated and efficient warehouse significantly expands JD.com’s ability to provide same-day and next-day delivery via our last-mile delivery network, even during peak periods,” JD.com CEO Richard Liu said in a statement.

    The company, which raised US$1.78 billion on the NASDAQ in May, said in its initial public offering (IPO) document that it would spend between US$1 billion to US$1.2 billion over the next three years to expand fulfillment infrastructure.

    (SD-Agencies)