JD.com has launched a new resale platform app called Jing Zhi, where users are able to host second-hand products.
Users who sell on the app will have to pay Jing Zhi a six per cent commission fee to the platform or sell their second-hand items through JD.com’s AiHuiShou division.
Currently the most popular category of products that are being listed are electronics however there is a small proportion of luxury, fashion and beauty products available.
The news comes after Chinese investment bank Shenwan Hongyuan released a report earlier this year claiming the country’s total resale market was worth over 1 trillion yuan ($154.78 billion).
The e-commerce resale market separately reached 374.55 billion yuan ($57.97 billion) and is made up mainly by Alibaba’s Xian Yu and Tencent’s Zhuan Zhuan.
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The two Chinese tech behemoths make up 90.9 per cent of the ecommerce resale market share.
Xian Yu’s gross merchandising value (GMV) was more than 200 billion yuan ($30.95 billion) in Alibaba’s fourth quarterly earnings report in May.
The news comes as JD.com founder and chief executive Richard Liu yesterday announced he was stepping back from the day-to-day running of operations while the company said it had created a new president role.
Liu’s role will be undertaken by Xu Lei, who was previously chief executive of JD Retail.
There have been murmurs of a management change at JD.com since 2018 when Liu was arrested on suspicion of rape in the US.
However he was not charged with the crime and still owns around 80 per cent of the voting rights of JD.com