E-commerce companies Shopify and JD.com on Tuesday said they will partner to make it easier for U.S. companies to sell consumer products in China. Despite the new marketing pact, Shopify stock fell as the Nasdaq composite pulled back.
Merchants belonging to Shopify's network will be able to list products on JD.com's website. The Chinese e-commerce company will handle distribution, the companies said.
"This new sales channel opens access to JD's 550 million active customers in China who are shopping for authentic, high-quality products from brands all over the world," Shopify said in a blog.
Shopify stock slipped 4.4% to close at 1,054.66 on the stock market today. JD stock dipped 0.4% to 73.40.
Shopify Stock Tumbles In Early 2022
Shares in many Chinese tech companies have rebounded in early 2022. JD.com stock, listed on the Nasdaq, had gained 5% as of Tuesday's market open. Shopify stock has tumbled 24% this year.
JD.com has a multitude of business units, and offers a vast selection of products, across every major category. This includes electronics, apparel, home furnishings and appliances. It also sells fresh food and groceries.
Further, it holds strategic partnerships with Walmart, Google-parent Alphabet and China-based Tencent Holdings, among others.
In addition, Canada-based Shopify stock sets up e-commerce websites for small businesses. Also, it partners with others to handle digital payments and shipping.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns in issues such as Shopify stock is one key to the investment guidelines.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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