Best Express and Extreme Rabbit Express are fined for half a month:
Yiwu "1 yuan free shipping" express price war under the reshuffle
"Zhongtong, 1.5 yuan"
"Yuantong, 1.45 yuan"
"Rhyme, 1.4 yuan"
...
Yiwu merchants sell "1,000 tickets per day". The express company's offer is like an auction bid, but obviously the one with the lowest price will win.
At the beginning of April, Best Express and Extreme Rabbit Express were fined for low-price dumping, which once again reminded the community that Zhejiang Province, a small city with a registered population of less than one million, is also a battleground for military strategists.
"The difference is about 0.3 yuan, and the business will choose to switch to the express company." Competition is fierce, and companies often lose between a few cents.
A reporter from the Beijing News found from the price list obtained by the express company that before the Yiwu Post Administration, the lowest price of a single express ticket was 1.1 yuan for Best, and about 1.15 yuan for Jitu, Yuantong, and Shentong.
This figure is far below the regulatory red line price (cost price of about 1.4 yuan).
Insiders told the Beijing News that the “low-price dumping” ticket was related to the rapid increase in the business volume of some express companies. “Yiwu has a large express delivery company. Almost all express companies have given prices that exceed the industry regulations. If everyone is in The state of balance is good. Suddenly one or two groups will increase their balance too quickly, and of course they will be fined."
The merchant told reporters that this wave of price wars should be traced back to the resumption of work after the epidemic. The express delivery industry was cold, and the company pursued the first to carry the flag of price reduction: 2 yuan plummeted to 1.51 yuan, and it hit 1.4 yuan in early 2021.
The ticket reflects the price of express delivery in Yiwu, which has broken through the reserve price. However, this is only a microcosm of China's express delivery in volume-for-price.
Rectify
Express "losing money" grabs orders, supervision takes a heavy blow and prices rise
"The current price has risen, and the outlets now require a minimum single ticket price of 1.3 yuan." Best Express courier Liu Ming (pseudonym) told reporters.
Recently, a reporter from the Beijing News obtained a warning letter issued by the Yiwu Post Administration Bureau on April 6, which showed that the bureau had repeatedly notified Jitu Express and Best Express not to dump at prices much lower than the cost, but The company did not rectify as required.
Yiwu Post Administration issued an ultimatum, requiring the above-mentioned companies to complete their rectification before April 9, otherwise they will order the company’s distribution center to suspend operations for rectification in accordance with the relevant requirements of Article 41 of the "Express Delivery Regulations".
Liu Ming said that the Yiwu transshipment center where he is located is currently not suspended, but the ultimatum has tightened his nerves.
"At that time, when the news came out, I was also very anxious, so I went to the headquarters to ask if the situation was true and what to do if it really stopped, and what to do with the express delivery."
A Yiwu express price list learned by a reporter from the Beijing News from the express company showed that before Yiwu Post Administration issued a ticket, the lowest price for a single express ticket was 1.1 yuan for Best, and about 1.15 yuan for Jitu, Yuantong, and Shentong. Zhongtong is about 1.3 yuan and 1.4 yuan respectively.
Supervision "gunfire", Yiwu express pattern undercurrent surging, many express companies responded with price increases, at present, the single fare of express delivery has risen to a maximum of about 1.5 yuan.
The Beijing News reporter learned from many sources that the actual price did not differ much from the single ticket price list, and the maximum fluctuated between 0.05 yuan and 0.2 yuan.
Jitu courier Li Ke (pseudonym) told reporters that he is responsible for collecting 300 to 400 pieces every day. After experiencing the "low-price dumping" fine, the price has rebounded.
"Now the price is all one and five cents. If the quantity is small, it will be a little bit more expensive; as for one and two, it was all from last month."
Li Ke mainly talks about customers by going to the building, and he can also get some customers from relatives and friends, post bars, and Moments.
"Now it's more difficult to increase prices. Some previous customers don't cooperate anymore and have to look for them again." In a dilemma, Li chose to give up receiving and sending express mail to remote areas such as Xinjiang and Tibet.
The reason is simple: it can't be sent, the postage is high.
"1 yuan free shipping", such a single ticket price obviously cannot flatten the cost, including face-to-face orders, delivery fees, labor, and infrastructure. However, as a price depression, Yiwu has a siphon effect on the surrounding area and even the whole country-express delivery will be delivered from now on. On the one hand, it has increased the business volume of express delivery companies. On the other hand, for the national network of express delivery companies, Yiwu’s losses are spread across the country’s outlets, which is still a profitable business.
"To fight a war, the price must be low," said an insider of the express company. In Yiwu, it is all done at a loss.
According to the memories of many local merchants, since 2013, the price of Yiwu express delivery has been steadily decreasing at a rate of 0.6 yuan to 0.8 yuan per year. Although there have been adjustments since then, the single ticket price on the counter of each express company has remained at about 2 yuan, but the actual price The express delivery price has always been below the regulated red line price (cost price is about 1.4 yuan).
In 2014, Yiwu embarked on the trend of express delivery industry, from the traditional LTL freight to express logistics. Many express companies from Tongda Department and SF Express joined, and took the lead in completing the construction of express delivery parks in the province and even the whole country.
The express park has an agglomeration effect.
The express industry has low barriers, and the industry has gradually moved towards low-quality competition in price wars over the years. Yiwu has also become a corner of the express price war.
Liu Ming revealed to a reporter from the Beijing News that the current single ticket price for small customers is between 1.5 yuan and 1.6 yuan, and that for large customers is around 1.2 yuan. For large customers, low prices have threshold requirements—the weight of a single ticket is limited, and the number of votes is the least. Up to 3000 votes.
At Liu Ming's branch, the order volume can reach tens of thousands of tickets a day.
In fact, the price of express delivery varies depending on the weight, quantity, and delivery location of the goods, and the asking price is different for each site.
According to Zhang Qiang (pseudonym), the relevant person in charge of ZTO Express in Yiwu, he received only five or six hundred tickets every day.
Enclosure
Merchants are happy to see a price war: 0.3 yuan "break up red line"
This round of price wars lasted for a long time, and the merchant Ding Yong (pseudonym) saw it.
"Working resumed after last year, and various express delivery companies started a price war, which dropped from more than 2 yuan to 1.51 yuan. At that time, I was really happy." Ding Yong said, despite the mid-year price increase, the price gradually returned to 1.61. However, by the beginning of 2021, it dropped to 1.4 yuan again.
"It's not in April, but it's back to 1.5 yuan."
The ups and downs of express delivery costs are related to the fate of some merchants. “Small commodity merchants don't make money at all. If you ship a few dollars in freight, you can make a few dollars per order.” As a merchant, Ding Yong is happy to see such price wars.
In Yiwu, the number of shipments is an important bargaining chip for business negotiations.
Li Jing (pseudonym) sells accessories in the small commodity market. She told reporters that her company has cooperated with Yuantong and Best. For many years, express delivery prices have started to increase in the second half of each year, with the highest increase during the peak season in September and October.
During peak periods such as Double Eleven and June 18, the company has the largest shipment volume, reaching 5,000 to 6,000 votes per day.
Yiwu merchant Tan Wei (pseudonym) cooperates with Zhongtong, with an average daily shipment volume of about 30,000 orders. "If you encounter Double Eleven, there will be 50,000 to 100,000 orders a day."
One piece of Tan Wei's goods is about 400 grams, and the shipment volume exceeds 30,000 orders to get the price of 1.4 yuan.
Zhang Qiang told a reporter from the Beijing News that ZTO's express delivery prices have risen due to the ticket incident.
"The price of our Zhongtong has always been a little higher than that of other express delivery. The prices of Best and Extreme Rabbit have always been very low. Now they have been checked and the prices have also been increased."
For merchants, it is normal for express delivery prices to increase, but the volatility may often lead to a deadlock in the relationship between the two parties.
A courier said that when there is a difference of between 0.05 yuan and 0.1 yuan with other express companies, the merchants generally will not find the next home, but the difference of about 0.3 yuan will cause the merchant and the express company to "break up": the merchant decisively chooses to change the offer. Low courier company.
In Yiwu, it is most taboo for express delivery to increase prices rashly.
Yunda’s salesperson Zhu Li (pseudonym) said, “Customers must be notified when prices are increased or decreased. Some customers mind the temporary notification when the price is increased. When the price is reduced, the higher price will be charged. If this is discovered, they will not Will cooperate again."
Yiwu gathers small commodity merchants and all domestic courier companies that are well-known, and the competition derives a set of own rules of survival.
According to data from the Jinhua Post Management Bureau, Yiwu's express delivery business volume in the first quarter of 2021 was about 1.9 billion pieces, accounting for almost 80% of Jinhua's express delivery business volume, a year-on-year increase of 107.5%, and the cumulative express delivery revenue was about 5.1 billion yuan, a year-on-year increase of 66.9%. .
In contrast, in the first quarter of the country, the postal delivery service business volume and business income were 6.42 billion pieces and 11.4 billion yuan respectively.
Zhu Li told reporters that the express price is determined based on the weight of the goods, the number of tickets, and the delivery distance.
Another influencing factor is the shape of the package. For example, some goods are lighter but occupy a larger space, such as hula hoops, glass mirrors, etc., and the charges will also be high.
For goods weighing within 300 grams, Yunda is about 1.4 yuan, plus 0.1 yuan for every additional 100 grams.
According to Wang Zhi (pseudonym), a ZTO Express salesperson, customers are usually negotiated by both the agent and the salesperson. The salesperson has a monthly customer volume indicator, and the bottom price set by the company is excluded, which is the monthly profit of the salesperson.
Low price
Who is the victim of the "express scalper" haunt?
Those who get the quantity get the world, and in addition to the low prices, the express outlets have seized another "straw."
A reporter from the Beijing News searched for posts related to express delivery and saw that express delivery scalpers are not uncommon.
Express delivery "contractors" are commonly known as express delivery scalpers. Their emergence is a product of the rapid development of the express delivery market and one of the unavoidable roles in the price war.
Express scalpers make money from traffic. Sometimes in order to get more customers, they will first release a minimum price, get orders from large customers at low prices, and then transfer them to express outlets at a lower price to earn the difference.
The presence of express scalpers has always been criticized, but the market demand in Yiwu is not small-in terms of express outlets, cooperation with scalpers to ensure order quantity.
As far as merchants are concerned, with more small merchants, you can get a lower express delivery price.
The reporter learned from interviews that in order to ensure the task volume, the express outlets had to turn to the scalpers to receive the goods at low prices, and the prices were also lowered and lowered, which undermined the order and fairness of the market.
“The stores in the community are all small customers, and the price is relatively easy to negotiate. But if you go to Tieba to talk about the price online, the price is too hard to make money.” Wang Zhi faced the express scalpers, and there was no advantage in price negotiation.
In his opinion, the price of ZTO Express is the lowest this year, and there is no room for price reductions, as are other express companies.
Yuantong express salesman Wang Hao (pseudonym) told reporters that the courier has limited energy, and in order to complete the monthly tasks and avoid being punished, he will find the scalpers to cooperate in ordering.
"The scalpers have their own resources, and they can get tens of thousands of votes a day." Wang Hao said.
Nowadays, the operating routine has matured, and some scalpers will also arrange cross-regional shipments in order to eat more price differences.
"In the past few years, many scalpers would take the goods to other places, and send them wherever the price is low. If he receives an order of 2.3 yuan from the customer and ships it at 1.5 yuan, he can earn 80 cents in the middle, and it will be good in one day. Tens of thousands of votes".
Wang Hao said, “The market is so big. In the face of this situation, the courier outlets can only take measures to repeatedly reduce prices, provide subsidies and preferential treatment, and try to bring in the source of goods as much as possible.”
Wang Hao has trouble saying, and things are not so simple, "Sometimes they don’t bring the goods on time, we have to keep pushing, or another company has a preferential express delivery policy, and if you don’t communicate in advance, you can send the goods over there and call us. I was caught off guard".
Lost or damaged parts often happen, "When they pull it over, just throw it away."
The merchant Wang Hui (pseudonym) sells sports equipment in Yiwu. Since the average daily shipment volume is only more than 500 tickets at most, he mainly cooperated with many merchants to find scalpers to contract to Yuantong Express.
He charged 10,000 tickets in March. At the end of the month, he planned to switch to a courier company, and asked the scalpers to refund the remaining 3,000 tickets and 800 yuan lost.
"As soon as the chargeback was filed, the WeChat was deleted by the scalpers, and I couldn't get in touch, so I had to go to the outlet to complain."
Wang Hui told reporters that the outlet’s response is already processing the matter, and as of press time, the refund has not been returned.
The Beijing News reporter searched and found that many netizens complained about the experience of being deceived by scalpers, including non-delivery after filling the order, no compensation for loss of express delivery, and deletion of contact information.
In the end, the complaint at the outlets was unsuccessful and he was in an awkward position.
Meager profit
The reshuffle is imminent, and the second-tier express delivery is moving towards transformation
In recent years, with the increasing competition in the express delivery industry, the profits of express delivery have continued to decline and gradually entered the era of meager profit. Market competition has been centered on low quality and low prices.
According to people familiar with the matter, the Yiwu Express price war began in 2013 and entered a white-hot stage in 2019.
With the launch of Jitu in the first half of 2020, it has officially joined the price war.
In April and May 2020, the epidemic eased, and after the official resumption of work, the price war was particularly serious, falling to about 1 yuan per vote, and then slowly increasing.
Affected by the epidemic in the first half of 2020, the express delivery industry has entered the off-season. Therefore, express delivery companies require lower-level outlets to complete a certain amount of orders. If they fail to meet the standards, they face fines. Therefore, outlets can only reduce prices to attract traffic, resulting in a general drop in express prices.
Until this year, express delivery generally reached the "freezing point" of prices in March, and prices began to fall back in April.
In 2020, in the ongoing price war, it is not uncommon for express delivery outlets to be exposed and shut down. A reporter from the Beijing News previously reported that many express delivery company outlets have closed down one after another.
The price war of Tongda Express has been pushed to the entire industry, and the company's price war has put pressure on all outlets.
Behind the price-for-quantity exchange is the continuous fines and performance pressure on all levels of outlets and couriers.
According to the official website of the State Post Bureau, in the first half of 2020, the growth rate of express delivery business volume and revenue was 9.5 percentage points, and the volume growth rate was nearly twice the revenue growth rate.
Starting from March 2020, the gap between volume and income growth has gradually widened, from 10.7 percentage points to 16.2 percentage points in May.
In the first half of 2020, the average express price was 11.3 yuan, continuing to decline.
At present, the share of the express delivery industry is almost divided up by the first-tier companies. The Tongda system has already shown economies of scale to a certain extent due to its long-term occupation of the express delivery market.
Zhao Xiaomin, CEO of Guanshuo Capital and deputy director of the Post and Express Committee of the Shanghai Transportation Commission, said that in addition to capital expenditure, a very important reason for the low income of single tickets is the price war, but the price war is still going on, because some companies want to use the price war. Leveraging the growth of their own business, they are unwilling or have no greater initiative to expand their boundaries and increase investment.
He said that with the advancement of the price war, there will be more cooperation between upstream and downstream companies, mergers and acquisitions, and integration, and more and more cases of "holding the thigh" standing in line.
Zhao Xiaomin reminded that the domestic express market is highly concentrated and homogeneous competition is serious.
With the increasingly active e-commerce market in third- and fourth-tier cities and rural areas and the development of the cross-border e-commerce market, the express delivery industry needs to (seek) a change of development and change the labor-intensive development dilemma.
According to the Dongxing Securities Research Report, express CR8 (reflecting industry concentration) has fallen below 80% after a lapse of two years.
Unlike normal years where CR8 will rise briefly during the Spring Festival, CR8 will continue to decline during the Spring Festival this year. This is an external manifestation that the industry is undergoing a reshuffle.
The price war is a severe test for all participants in the industry.
Many merchants told reporters in the Beijing News in interviews that Yiwu Express’s price war will not have any short-term impact on salesmen. Price hikes and price cuts fluctuate frequently, and there will be no big discrepancies.
Right now it is taking advantage, but the price war continues, and express delivery will eventually fail to go bankrupt.
Yiwu Express Single Ticket Price List (Unit: Yuan)
Zhongtong 1.4 before adjustment 1.4 after adjustment
Yunda 1.3 before adjustment 1.3 after adjustment
Yuantong before adjustment 1.15 after adjustment 1.3
Best before adjustment 1.1 After adjustment 1.35
Polar Rabbit before adjustment 1.15 after adjustment 1.4
Shentong before adjustment 1.15 after adjustment 1.25
Note: The express quotation refers to the situation before and after the ticket is issued by the Yiwu Post Administration Bureau. The actual quotation varies from RMB 0.05 to RMB 0.2
Beijing News reporter Cheng Zijiao, intern Wu Lixia