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Home collection was delayed and the package has not arrived in 10 days …
Rapid rise in express delivery puts pressure on delivery end, “Double Eleven” couriers not enough?
Every year Double Eleven is a big test for express delivery companies. This year’s Double Eleven, after the “late paying folks” experienced “too fast delivery”, they felt “this year’s express delivery was particularly slow.” Netizens complained, “Payment on day 1, 10 is still on the way”, “Estimated to be closed” …
Rumors about the closure of express outlets and the unavailability of express delivery were hot searches on the eve of Double Eleven. What is the real situation? In response, several express delivery companies responded to the Red Star Capital Bureau that the general operation of the points of sale was normal and that “individual points of sale were closed due to mismanagement.” As for the experience of slow receipt by some consumers, express delivery companies also said that this year’s major e-commerce platforms have expanded the front line, orders are higher than in the same period of years Previous and the increase in express delivery has put pressure on the end of delivery. The express company has improved efficiency by pre-sorting, upgrading the operations center, and adding automated sorting equipment.
Delayed pickup
The package “has been floating on the road for 10 days.”
On the evening of November 7, Ms. Xu decided to collect the goods from Taobao to return them. The scheduled pick-up time is from 1 to 3 pm and the platform shows that the order is done normally. At 9 a.m. on November 8, the courier successfully received the order, indicating that he was on his way to pick up the package. Ms. Xu also successfully received the text message, saying that the messenger would arrive at the door at the appointed time.
However, it wasn’t until 5 pm that the messenger called and said, “I’m too busy to go home, can I put it on the doorman?” He also asked her to change the pick up time from 5-7pm.
The day before, Ms. Xu’s homecoming pickup on Taobao was also delayed by two hours, causing Ms. Xu to wonder, “Are there not enough couriers at Double Eleven this year?”
Ms. Xu’s experience is not the only one. The courier picking up the item clearly tells the customer: “Please don’t buy anything at Double Eleven recently, otherwise there won’t be time to pick up the item.”
In addition to the pickup delay, many netizens also reported that their packages “have been floating on the road for 10 days”, “they have never left the operations center”, “the seller finally returned it for resending” …
In this regard, express delivery companies told Red Star Capital Bureau that this year’s major e-commerce platforms have expanded their front lines. Since October, various marketing activities have been started. Orders have been higher than in the same period in previous years. The increase in express deliveries has put pressure on the end of delivery. “Individual outlets are closed due to mismanagement, which will affect the speed of delivery to nearby normal outlets. Please be considerate.” At Double Eleven this year, express couriers have generally embraced pre-warehouse establishment, pre-positioning sorting, upgrading operations centers, and adding automated sorting. Equipment and other ways to improve efficiency.
Messaging shortage
And the branch manager personally delivers
Although express courier companies have taken relevant measures to increase the speed of delivery, these measures cannot solve the shortage of couriers.
A staff member at an express store explained to the Red Star Capital Bureau that “the operations center capacity is really surplus. Initial sorting efficiency and the addition of automated sorting equipment improve initial efficiency, while the end point remains. the distribution being human. The problem with this year’s Double Eleven is, The number of packages has increased and the couriers are insufficient. “
According to data from the State Post Office, there will be a peak season at Double Eleven (November 11-16). Average daily express delivery business volume is expected to reach 490 million, which is approximately double the daily business volume. Demand for courier recruitment is October An increase of 16.11%.
The main cause of the shortage of couriers is poor pay. According to data from the 58 City Recruitment Research Institute, in October this year, the monthly salary of couriers reached 8,519 yuan, an increase of 0.28% from 8,495 yuan in September. This shows that since the beginning of this year, the express delivery industry has been operating at full capacity, and double 11 couriers have little room to increase their revenue based on their workload.
CCTV has previously exposed that due to price wars one after another, the courier shipping fee has been drastically reduced. A courier said the courier fee was lowered to 40 cents. After deducting the cost of the SMS call, you can only earn 25 cents per order.
According to the 2019 National Courier Occupation Survey officially released by the State Post Office, more than 75% of couriers have a monthly salary of less than 5,000 yuan. Only 1.49% of people have a monthly income of more than 10,000, and the rate of first-line messengers with a monthly salary of more than 10,000 is only 0.73%.
Also, some unprofitable express outlets just didn’t hire part-time couriers this year. A courier told the Red Star Capital Bureau: “If efficiency is not good, no one will be hired. Even our branch manager will deliver the products personally.”
Quantum Consulting research shows that 20% of points of sale are profitable, mainly concentrated in points of sale with low labor costs, 50% of points of sale are unprofitable and 30% of points of sale they have losses.
The extreme rabbit comes threatening
Courier Company Price War
To be continue
It has become the consensus of express companies to change price for quantity.
In the first three quarters of 2020, the cost of a single ticket for express companies has decreased, but it is slower than the decline in revenue per ticket. Taking Shentong as an example, the cost of a full-caliber single ticket in the third quarter of 2020 is 2.23 yuan per month, a decrease of 14% from the previous month. Shentong completed a turnover of 2.434 million votes, a year-on-year increase of 19.55%, and the unit price of tickets was 2.14 yuan, a year-on-year decrease of 23.6% and its market share fell 0 , 3 percentage points with respect to the previous month at 10.93%.
The CITIC Securities Research Report noted that the current round of fierce price wars started last year. The initiators are leading companies. The goal is to accelerate the concentration of stocks in the industry and get rid of the competitors that are behind. Today, the effects of price wars have emerged and top-tier companies have emerged. With substantial declines in performance, losses, and major losses, abnormal departures frequently occurred. Analysts believe that the current difficult stage for some first-tier companies is an excellent opportunity for leading companies to widen the gap with their competitors, and the short-term price war is expected to remain one of high pressure.
Additionally, the newly entered Super Rabbit Express is taking over the mid-range and low-end express market.
According to data, Jitu Express was established in August 2015 and is the second largest express courier company in Southeast Asia. Backed by Sequoia Capital and several Southeast Asian consortia, Jitu has not hesitated to spend money and adopt a low-price strategy to rapidly increase business volume.
According to media reports, Shentong, Yuantong, and Yunda recently joined forces to block Extreme Rabbit Express, demonstrating the threat from Extreme Rabbit. The menacing Polar Rabbit has further intensified competition in the express delivery industry and the price war has escalated.
Chengdu Commercial Daily-Red Star News reporter Wu Danruo
