Tesco, the world's third-largest retailer by revenue, announced on Wednesday the launch of its online shopping service in China.

The service will initially only be available in Shanghai. Products will be delivered free from their stores.

Tesco is not the first international retailer to kick off an online service.

Last year, the world largest retailer, US Wal-Mart, increased its stake in Yihaodian, a Chinese online grocery store, to 51 percent in order to boost its online presence in the country.

"Tesco China's online shopping service will enhance our role as a multi-channel retailer and provide better shopping experience for customers in the digital age with integrated retailing service," said Paul Ritchie, Tesco China CEO.