The value of goods sold via Dangdang’s marketplace rises 103% as the one-time online bookstore becomes a mass merchant.
Chinese online retailer and marketplace operator Dangdang Inc. had a successful first quarter. Dangdang, No. 10 in the Internet Retailer China 500, which got its start selling books online, since last year has been expanding its categories by allowing other retailers to sell on its site. The retailer’s shares trade on the New York Stock Exchange and the company’s market value is currently $802 million.
“We continue to make good progress in transforming Dangdang from an online bookstore into an integrated online shopping mall with prominent destination categories,” says Peggy Yu Yu, executive chairwoman of e-commerce for China Dangdang. “Combined general merchandise sales of 1.7 billion yuan ($270 million) from both principal business and marketplace surpassed books and media for the sixth consecutive quarter, growing at a rate of 71% year-over-year. Apparel accounted for nearly half of marketplace (sales volume) and continued to outpace the growth of the overall marketplace.”
For the first quarter ended March 31, 2014 Dangdang reports:
Dangdang expects total net revenue in the second quarter to reach $311.44 million, representing year-over-year growth of around 30%. It expects the value of goods sold through its marketplace to grow 80% year-over-year in Q2.
In March another Chinese e-retailer, Yihaodian, which operates Yhd.com, and Dangdang.com agreed to open storefronts on one another’s sites. Yihaodian said it will sell groceries from its Dangdang storefront, while Dangdang.com will sell books on Yhd.com.