The Express Dragon: Over 5,100 Parcels Delivered Every Second

China’s postal authority reported on August 13 that over 100 billion parcels have been delivered so far this year, a milestone achieved 71 days earlier than in 2023, according to SCMP.

This equates to an average of 440 million parcels transported daily across China, or 5,144 deliveries per second.

The report also stated that daily peak deliveries exceeded 580 million, monthly average deliveries surpassed 13 billion, and monthly revenue exceeded 100 billion yuan (350 trillion VND). All of these are record-breaking figures.

As the world’s largest e-commerce market, accounting for about half of global online sales, China is home to giants like Alibaba, JD.com, and PDD.

In 2023, the country’s online retail sales reached 15.4 trillion yuan (54 quadrillion VND), an 11% increase, according to the Ministry of Commerce. This solidified China’s position as the global leader in this sector for the 11th consecutive year.

However, the surge in delivery volumes has come at a cost to operators, as intense price wars have eroded profits in recent years.

To gain market share, many couriers have slashed prices to unsustainable levels, pushing some small and medium-sized enterprises to the brink of bankruptcy and undermining profitability across the industry.

Last year, major Chinese express delivery companies like STO Express, Yunda, and YTO all reported declines in revenue per parcel.

Additionally, the increase in delivery volumes has been fueled by a rise in product returns.

Some sellers claim a return rate of around 60%, with women’s clothing being the most returned item, peaking at an 80-90% return rate during promotional events. This means that only one or two out of ten transactions are actually completed.

Cherry Wang, a resident of Chengdu, is one of many young women who frequently return clothing. During China’s online shopping peak season, she returns up to 70% of her purchases.

“I tend to go all out during major sales, but for every 2,000 yuan I spend, I return about 1,000 yuan (3.5 million VND),” Wang said. “Even when I don’t shop extensively, my return rate is still around 50%.”

However, the rapid growth of the express delivery industry is also attributed to the simultaneous development of transportation infrastructure, especially in rural areas.

According to China’s Ministry of Transport, the country has established over 1,200 public county-level delivery service centers and more than 300,000 logistics service stations in villages.

As a result, the number of parcels delivered in rural areas has increased more than tenfold in the past decade.

Leveraging China’s rural delivery system, express delivery companies have stepped up their investment in technology and logistics innovations.

In the country’s sparsely populated western regions, deliveries that used to take a week can now be completed in just two or three days.