How can express delivery companies make efforts in the logistics peak after Double Eleven

How can express delivery companies make efforts in the logistics peak after Double Eleven

 

This year's Singles' Day, the launch time of major e-commerce platforms is more than 10 days earlier than last year, known as the longest Singles' Day in history. According to monitoring data from the National Post Bureau, from October 21st to 23rd, the postal and express delivery industry in China collected about 1.92 billion parcels, a year-on-year increase of 48.7%. Among them, 729 million parcels were collected on October 22nd, a year-on-year increase of 74.0%, breaking the record for daily business volume.

 

After 'buy buy buy buy', it's' give it away '. After the shopping peak of Double 11, the logistics peak followed closely.

 

Express delivery companies that mainly focus on large item express delivery have joined the battle for e-commerce transportation this year. During the "Double 11" period, Debon Express shouted the slogan "Debon for large item e-commerce returns and exchanges" for the e-commerce return market; Best Express announced a policy adjustment starting from October 21st, reducing some miscellaneous fees in designated kilogram segments in key areas to alleviate costs for e-commerce customers

 

Refrigerators, televisions, massage chairs, sofas, wardrobes... With the deepening penetration of e-commerce, more and more consumers are choosing to purchase large items such as home appliances and furniture online. Large item express delivery has gradually become a "must-have" in the transportation market, and the transportation of these goods has also brought new incremental space for express delivery companies.

 

The lucrative profits of e-commerce have led express delivery companies to explore the small cargo e-commerce model while transporting large items. However, due to the high unit price and profit margin of mini tickets and small ticket less than truckload, there is a higher demand for service quality and more value-added services. Previously, express delivery companies did not have a large scale in the small cargo e-commerce market due to lack of hardware support, outdated IT systems compared to express delivery systems, and insufficient network coverage.

 

Interest driven is undoubtedly one of the reasons why express delivery companies compete for e-commerce items during this year's "Double 11" shopping festival. In addition, after years of brutal growth, the express delivery industry is facing many challenges such as standardization, refinement, and profitability as competition intensifies. Developing new businesses and catering to market demand are also important factors in its shift towards e-commerce item competition.

 

So, how can express delivery companies make efforts and gain more share in this year's "Double 11" logistics peak?

In the short term, price wars may be an effective weapon for competing in the large item market. However, the era of exchanging price for quantity is coming to an end, and the meticulous channel laying is the new growth "booster". If the express delivery industry wants to achieve long-term development, it should shift from a low dimensional "price war" to a higher dimensional "value war".

 

If small items rely on business volume and scale to obtain commercial value, then large item merchants need more integrated supply chain services, including value-added services such as warehousing, cargo adjustment, and delivery. The core lies in cost control, quality and service quality improvement, which should be the focus of express delivery enterprises.

 

Specifically, express delivery companies should focus on the four dimensions of channel, cost, quality, and digitization to hone their internal skills. Accurately grasp customer needs through "one customer, one policy", strengthen stickiness through reasonable pricing and customized services; Conduct lean cost management, optimize transportation and distribution costs; Ensure quality and service, improve timeliness while reducing the probability of damage and loss, and continuously improve standardized customer demands and service processes; In addition, it is necessary to have scenario oriented digital capabilities to support efficiency upgrades in business, transportation, operation, customer service, management, and other scenarios through specific digital use cases.

 

The "Double 11" logistics transportation war has already begun, and we are pleased to see more companies providing better logistics services.