China's Couriers Brace for Delivery Surge During Double 11 Shopping Festival as Price War Continues(Yicai) Nov. 1 -- Couriers in China are preparing for a jump in packages during the Double 11 shopping festival amid an ongoing price war in the sector after competition intensified this year, with a rebound in business volume and a decline in delivery fees.
A delivery outlet manager told Yicai that they have prepared personnel, vehicles, venues, and logistic support to gear up for the shopping season, with plans to add 15 parcel sorting employees, as well as a large truck and a driver. The average daily number of handled packages will likely jump 30 percent, with peak days to see a 60 percent surge, he added.
Yunda Holding will coordinate its outlets and distribution centers to prepare for Double 11 per-sales, the company said. It has arranged resources and staff reserves in advance to help ease merchants' shipment pressure, improve warehouses' turnover rate of goods, shorten the full chain time of deliveries, and improve receiving experiences, it noted.
Deppon Logistics integrated its transport resources to realize a combined air-rail freight and will adopt customized solutions for customers in the fields of home furniture, home appliances, shoes, and clothing, and goods for mothers and babies, pets, and fast consumption, according to the company.
STO Express promised on-demand deliveries during the festival, further expanding the scope of incentives for couriers and setting up pre-sales and after-sales lines for mainstream e-commerce platforms to provide customer service support. Alibaba Group affiliate Cainiao International Express will upgrade the 'pre-sales ultra-fast arrivals' model, with delivery of some pre-sale orders to be faster than usual.
Several express delivery couriers have seen their delivery volume jump this year from a year earlier, but also a decline in revenue from single tickets. China's express delivery volume soared 23 percent in September from a year ago, while the cost of deliveries fell 7 percent, according to data from the State Post Bureau.
STO Express's revenue per delivery tumbled 13.5 percent to CNY2.11 (29 US cents), that of Yunda dropped 12.9 percent to CNY2.29, while such income of S.F. Holding and YTO Express Group was down 7.3 percent to CNY17.21 (USD2.35) and CNY2.34, respectively.
The express delivery sector will enter a high-demand period as it enters the peak e-commerce shopping season, with business volume and delivery prices to increase month-on-month, according to an analysis from the transport sector research team at Huatai Securities.
Editors: Zhang Yushuo, Martin Kadiev