JD.com, a Chinese-based ecommerce company, announced the launch of its warehouse and logistics initiative ahead of China’s Singles Day, 11/11, which produced sales of $5.75 billion last year.
This is part of a $1 billion push to expand storage and processing facilities in China. JD.com currently operates seven fulfillment centers and 97 warehouses in 39 cities.
A Shanghai warehouse has started operations as part of the initiative, and will eventually be able to sort 16,000 packages an hour, according to Townhall Magazine.
This will help process orders during Singles Day, and generates a spike in online shopping as people buy gifts for single friends.
JD.com, which raised $1.78 billion during its May IPO, said in its filing that it would spend between $1 billion and $1.2 billion over the next three years to expand its fulfillment infrastructure.