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How to cope with the rapid growth in express market?


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Fast-growing express e-commerce business

The volume of China's express delivery market reached RMB 1.01 trillion in 2021, accounting for 63.6% of the global express delivery market. China has topped the world's highest volume in express field continuously for many years.

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In recent years, with the rapid increase in market demand and the rapid development of the express delivery industry, the E-commerce is catching up with pace, too.


In 2022, China's online retail sales reached 13.79 trillion yuan, with a year-on-year increase of 4%. The overall express volume was recorded 110.58 billion pieces, went up 2.1% comparing with last year.

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Income slows down while the competition goes further

From 2016 to 2022, the compound annual growth rate of express business volume goes up by 23.42%, while the rate of revenue only reaches 17.70%, way lower than the volume increase. This industry is absolutely growing very fast, but no question, the competition goes further.


Furthermore, labor-related costs account for about 16.5% of operating costs in the express delivery industry. However, as the "demographic dividend" is actually fading, at the same time, more and more young workers are reluctant to engage in labor-intensive and low-value-added jobs, which results in a continuous rise in the labor costs of logistics companies.


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Increased Consumer Awareness and Growing Complaints

With the rapid development of the industry and the pressure of slow income growth, the services of the express delivery industry are gradually unable to meet the growing diversified needs of consumers. In addition, consumers' awareness of rights protection continues to increase, and so do the complaints.


According to data from the CHINA POST, in 2021, about 140 million express-related cases were recorded, including complaints, inquires, suggestions, etc., which reaches a 50% year-on-year increase.

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The main contradiction among couriers, consumers and express companies

Couriers, consumers, and express companies are the main three parties in the express delivery business. Due to their different interests and demands, many contradictions between each two parties is existing:

1. The work intensity of the couriers is high, the income is low, the working hours are long, and there is no interest guarantee;

2. Consumers have higher and more diverse requirements for express service quality, and that's why they expect more from the express companies and their after-sales teams.

3. The express company is facing the challenge from market rivals, they need to cut costs while maintaining or improving the service quality

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Precise positioning technology to effectively meet the needs of the three parties

Traditional digital management solutions can no longer meet the demands of couriers, consumers and express companies.


iData's latest intelligent terminal product with precise positioning function (iData T3 high-precision positioning version), supports sub-meter level RTK high-precision positioning and ±5cm level high-precision barometer height detection, and can achieve horizontal + vertical high-precision positioning , the courier can effectively locate the specific floor when delivering.


The introduction of iData's latest digital management solution can help couriers plan routes more reasonably and save time; It can also help express companies reduce costs and increase efficiency, reduce complaints; and meet consumers' differentiated delivery needs.

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