On the JD e-commerce platform, the merchant settlement process is a key link to ensure the smooth progress of transactions. This article will analyze in detail the settlement mechanism of JD merchants, including the settlement cycle, fee calculation method and common problems, to help merchants manage their finances more efficiently and optimize their operational strategies.
E-commerce, relying on cutting-edge technologies such as the Internet and mobile communications, realizes the online sales and purchase process of goods and services. After decades of vigorous development, it has been deeply embedded in social and economic life in an all-round way, covering multiple fields such as clothing, food, housing and transportation, leisure and entertainment, consumption and shopping, and providing systematic services for the public. When it comes to e-commerce, many well-known platforms in the industry often quickly emerge in people’s field of vision.
Domestic: Taobao, JD.com, Tmall, Pinduoduo, Douyin e-commerce, Xiaohongshu, Meituan, Dewu, Vipshop, etc.;
Abroad: Domestic e-commerce overseas platforms AliExpress, Pinduoduo Temu, Byte TikTok Shop, Shopee, etc.
The mainstream model of e-commerce has B2B, B2C, B2B2C, C2C, O2O, C2M, etc., we often see the store’s official flagship store, specialty store, franchise store, JD.com’s self-operated store, etc. when shopping on the platform, everyone feels that the official flagship store/platform is self-operated, and the quality is trustworthy. Its price is generally not optimal, and the price of other stores will be cheaper than the official store.
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Everyone is very familiar with the e-commerce transaction process, and the corresponding e-commerce platform business model may not necessarily be understood, and then reveal what fees merchants need to pay to the platform to open an online store, how the platform settles for merchants after the sale of goods, and what are the settlement basis and standards.
The settlement mode and settlement fees of major e-commerce platforms are basically similar, the positioning and growth path of each platform are different, and there are some differences in billing rules and naming.
1. E-commerce business model
Here we mainly introduce the POP model of JD.com’s domestic business operation (merchants settle in JD.com (merchants are self-operated), the platform provides transaction matching, marketing, finance, logistics services, service fees related to merchant procedures, and the platform plays an intermediary role), this article mainly introduces this model.
Business model:
- Distribution: Retailers purchase goods in bulk from suppliers (superior distributors or manufacturers) for retail on the e-commerce platform, and retailers have relatively high autonomy, high pricing, high profits, and self-control over performance. It is suitable for retailers with strong sales ability, abundant funds, and good sales of purchased goods.
- Consignment: Retailers lack supply, less operating capital, or goods are not easy to sell, retailers and suppliers sign agreements, retailers are responsible for sales, suppliers perform contracts, for retailers occupy less capital, small risk, but thin profits, poor ability to control goods.
- Direct sales: Brands or manufacturers produce their own products and sell them on e-commerce platforms.
- Consignment: The goods are owned by the supplier before the sale is completed, and the retailer purchases from the supplier when the sale is completed, and then sells to the retailer’s customers.
Store Type:
According to the business category, there are two main categories:
JD.com’s self-operated merchants supply JD.com as suppliers, which are essentially settlement by suppliers; There is a big difference between these two models and the merchant self-operated (POP model), so this article will not introduce them.
2. The main settlement costs of e-commerce
1. Security deposit
Deposit refers to the funds paid by the merchant to the platform to compensate the buyer or pay liquidated damages to the platform and/or the buyer when the merchant fails to fulfill its consumer rights protection obligations, violates the service agreement or the relevant rules and procedures of the platform, including basic deposit, risk deposit, and temporary deposit.
Basic margin
The merchant’s business category is related to the monthly supplementary deposit. The ladder margin is divided into six levels according to the transaction amount: 30,000, 50,000, 100,000, 200,000 and 300,000, and the deposit standards for different levels are different.
Illustrate:
In January 2025, merchant Lao Wang is preparing to open Lao Wang Zhou Shengsheng’s flagship store on the JD.com platform, operating as K gold jewelry, with a monthly trading volume of 24w yuan, so Lao Wang needs a deposit of 1w yuan.
2. Platform Usage Fee
The fixed technical service fee paid by the merchant when using the services of the JD Open Platform in accordance with the relevant agreement signed with JD.com.
Except for some categories of POP merchants and Jingxi merchants, the platform usage fee is charged according to the specification of 1,000 yuan per month from March of the following year, depending on the merchant’s entry time:
i. 1-15 of the current month, payment amount = [15-(N-1)] * monthly platform usage fee (N is the month at the time of payment);
ii. After the 15th of the month, payment amount = [15-(N)] * monthly platform usage fee (N is the month when the fee is paid);
Note: Now cancelled
3. Operation Support Service Fee (Commission)
The operation support service fee is a fee that merchants need to pay according to a certain percentage of their sales when operating on JD.com. This means that for each order traded by merchants, JD.com will charge the total transaction amount of the order multiplied by the corresponding category service rate. Depending on the category, it will be deducted in real time when the order transaction is completed.
There are three main types of JD.com:
Commission:
There is only one rate for the category, [1%, 30%] or a fixed value of X yuan;
Formula:
Commission = payment * rate, payment is the front desk selling price – merchant preferential amount
Illustrate:
Xiaomei buys platinum 105 yuan in Lao Wang’s flagship store, 5 yuan in merchant coupons, pays 100 yuan, the platinum commission rate is 3%, and the commission charged by JD.com is (105-5) * 3% = 3 yuan.
Commission Rebate:
The base rate, which is partially returned to the merchant as a rebate when the conditions are met.
Formula:
Commission = payment * rate (basic deduction + rebate framework fee), and the payment is the front desk selling price – merchant preferential amount
Illustrate:
Xiaomei buys a water dispenser for 105 yuan in Lao Wang’s flagship store, 5 yuan for merchant coupons, pays 100 yuan, and the commission rate is 8%, of which 4% rebate, and the commission charged by JD.com is (105-5) * 8% = 8 yuan, and the follow-up (105-5) * 4% = 4 yuan (follow-up rebate to merchants).
Commission-Back Ads:
A portion of the base rate is returned to the merchant’s ad account.
Formula:
Commission = payment * rate (basic rate – return advertising rate), and the payment is the front desk selling price – merchant discount
forehead
Illustrate:
Xiaomei buys a guitar for 105 yuan in Lao Wang’s flagship store, 5 yuan for merchant coupons, pays 100 yuan, and the commission rate is 2.5%, of which 0.25% is returned to the advertising account, and the commission charged by JD.com is (105-5) * (2.5%-0.25%) = 2.25 yuan, and the follow-up (105-5) * 0.25% = 0.25 yuan (subsequently settled to the advertiser’s account).
4. Marketing expenses
In order to increase the exposure of stores or products, JD.com platform merchants invest a certain budget in and outside the JD.com station to attract target groups to click, add-on, buy, and achieve marketing goals.
The platform provides a wide range of marketing products, mainly introducing several frequently used products
Smart delivery
Intelligent delivery products set multiple scenarios and resources, combined with intelligent orientation, intelligent bidding, and intelligent creativity to meet the marketing demands of merchants in different scenarios.
Presentation form:Global high-quality resources are one-stop delivery, covering on-site search advertising traffic, on-site recommended advertising traffic, and high-quality traffic outside JD.com
Bidding method:RTB real-time bidding, pay-per-click (i.e., CPC billing)
Example:
JD Express
Merchants can quickly acquire target customers through the habit of target users to find products, such as keyword targeting, product targeting, and intelligent bidding, and effectively acquire customers and promote conversion.
Presentation format:Search for product keywords, and the results contain content with the word “advertisement”, product, store
Bidding method:Product advertising is billed according to CPC, that is, it is charged according to the number of clicks; Jingxuan store advertisements are billed according to CPM, that is, charged according to thousand impressions.
Example:
Off-site advertising
The data marketing platform of JD.com’s digital intelligence, media broadcasting capabilities and traffic advantages, relying on JD.com’s digital intelligence, integrates more than 10 billion traffic in the whole region, opens up contacts and data inside and outside the station, realizes the efficient interconnection of traffic fields and trading fields, and meets the needs of conversion and long-term drainage.
Presentation format:Advertise on off-site traffic platforms, Byte Department: Douyin, Toutiao, Tencent Department: WeChat, Tencent Video, etc.; Others: Xiaohongshu, Baidu, etc
Bidding method:CPC and CPM billing
Example:
JD Alliance
JD Alliance is an off-site advertising tool that is cooperated and promoted by webmaster alliances and billed according to actual turnover
Presentation format:External traffic platform browsers, price comparison networks, recommendation network advertisements or product links are guided to the JD platform for purchase
Bidding method:CPS billing
5. Warehousing and logistics costs
For information on how to bill and settle e-commerce platform warehousing and logistics, please refer to previous articles:
E-commerce platform JD.com warehousing and distribution fees
3. Financial service fees
1. Pay for services
1) Transaction service fee
When users choose a payment tool when purchasing goods in a merchant’s store, the platform will charge the merchant a payment service fee.
Service Rate: 0.6%
Billing formula: Payment amount * 0.6%
2) White strips
Installment fee
If the merchant participates in the installment without handling fee, the platform will charge the merchant the payment service fee, and vice of charge to the user.
Merchant rates:
Billing formula:Installment amount * corresponding installment rate
2. Supply chain financial service fees
1) Early payment
Early collection service is a service that helps merchants shorten the account period and accelerate capital turnover. After JD Small Loan opens the service in advance, the merchant will get a certain amount of recoverable, within the limit, once the eligible order is shipped, you can receive the corresponding payment of the order amount in advance, and there is no need to wait for the buyer to confirm the receipt, and the funds can arrive.
Rates:The daily interest rate is 0.05%, and interest is charged for up to 4 days
Premium:Charged per pen, X%/transaction,
Formula:Payment amount * rate * (period< = 4)
2) Goods and mortgages
Merchants’ goods enter JD.com’s warehouse, and loans are made with goods as collateral, and the pledged goods are mainly supported
Rates:Interest calculated on a daily basis, 6%-10.95% annualized, within 1 billion yuan;
Cycle:March ~ June
Formula:Loan amount * rate * period
3. Insurance
Freight Insurance:
In order to increase the exposure of goods on the e-commerce platform, increase sales, and reduce the return of buyers to pay freight to bring about a decline in shopping experience or user complaints, the purchase of return freight insurance for the goods, when the weight of the order goods is within the maximum compensation range of freight insurance, the user does not need to pay the freight, the merchant’s insurance amount is calculated on a single basis, JD.com is calculated according to the insurance rate, weight coefficient, and number of pieces.
Rate: from 0.01 yuan
The above are the official calculation methods and examples
4. Penalties and deductions for violations of regulations
E-commerce platform development Today, the platform rules have been very perfect, and there are many rule items, with a total of 8 categories and 26 sub-items:
If the merchant violates the platform rules, it will face the platform penalties ranging from warnings, product removal, store deduction points, merchant fines, and severe blocking of the store and merchant removal. There is a lot of content in this part, and the author mainly introduces several merchants who have been fined for violations.
Selling counterfeit goods
The platform has the right to remove the whole store from the shelves, permanently prohibit the products from the shelves, restrict transactions, impose a fine of 1,000,000 yuan or liquidated damages of 10 times the sales amount (from the highest), and the store will be cleared.
Price violations
The platform will carry out early warning, remove illegal products, restrict marketing activities, restrict advertising activities, reduce the comprehensive experience score of the store, require merchants to pay liquidated damages of more than 50 yuan and less than 1,000,000 yuan, search and push blocking/downgrading, store closure and clearance and other handling measures.
Information violations – false propaganda
falsely exaggerated product efficacy and fictitious functions, such as: 0 sugar, fat-free, whitening, longevity, etc.;
Trading cheating – fake trading
Brush sales, turnover, store ratings, praise, etc
Service violations – false shipments
Fake shipments and false trajectories
deduct liquidated damages of 1~10 times the actual amount paid for illegal orders, with a minimum of 200 yuan.
5. Conclusion
After more than 10 years of development, e-commerce has become very mature, from the initial seller’s market, to the B2B and B2C models that solve the information asymmetry between buyers and sellers, to the current buyer’s market, customized goods according to customer needs, small batches of agile delivery of goods to meet personalized needslive e-commerce, C2M, content e-commerce.
The platform formulates rules to attract merchants to settle in, reaches target users through on-site and off-site marketing activities, attracts user consumption, facilitates transactions, and all parties to the transaction take what they need.
In order to encourage merchants to sell more, for some categories of rebates or marketing expenses, but also to provide merchants with marketing tools, merchants through competitive product ranking to improve store exposure, attract new users, increase store sales, and provide merchants with a series of financial and supply chain services to empower merchants in need, so that they can focus on basic operations, and at the same time, the platform can also obtain the greatest commercial value while achieving merchants.
