Execs say in-house logistics made JD.com more nimble in coronavirus response

JD.com's strong fourth-quarter was overshadowed on a Monday earnings call by the company's ongoing response to the COVID-19 outbreak in China. The Chinese e-commerce giant has been providing material and logistics support to businesses and authorities and owes its ability to respond to the crisis to a substantial logistics infrastructure, executives said on a the call. JD.com executives laid out how the company's vast logistics operation also contributes to its profitability. Fulfillment costs grew 24% year-over-year in the fourth quarter, but fulfillment costs as a percentage of revenue decreased 6.4% to hit a five-year low in Q4. Gross margin stayed flat for the year in 2019, which executives counted as a win after investing in more logistics to increase capacity in lower-tier cities. Third-party logistics as a service revenue was up in Q4.