Signed and Delivered: The Lowdown on Express Delivery Services in China

Signed and Delivered: The Lowdown on Express Delivery Services in China
Jul 23, 2014 By Elaine Pang , eChinacities.com

Motorcycles laden with boxes held together by narrow straps weave through bumper-to-bumper traffic with a dexterity worthy of a circus act. These ungainly structures, precariously balanced on two wheels, can be seen shuttling across Chinese cities small and large. They represent a growing fleet of domestic express delivery services, a highly efficient force that ensured over 9.2 billion packages arrived in the lap of their intended owners last year. China’s express delivery volume ranks second in the world, after the US, and annual revenue has enjoyed a year-on-year growth of 36% in recent years.

China’s express delivery industry has been largely fuelled by the explosive growth of ecommerce – Taobao, Alibaba, even Amazon, are just some of the key players behind the boom. With 8,000 registered courier companies currently in China and counting, here’s a guide to riding the express delivery wave and ensuring your parcel reaches its destination swiftly and smoothly.

A courier in China
Photo: afoncubierta

Hey Mr Kuaidi…

“You have a ‘baoguo’ (包裹),” the sentence that every Taobao addict is waiting to hear. Although courier services have boomed with the e-commerce revolution, everything that has business promise in China quickly becomes saturated. Cutthroat competition in the industry has pushed kuaidi (express courier) prices low enough for indulgence. Gifting across China is just a phone call away, with the courier fee unlikely to exceed the price of the item (unless you’re presenting a terracotta warrior replica). Similarly, freecycling becomes more feasible for shipping treasured possessions to friends left behind in China. Over-shopped on your holiday trip? Let the kuaidi take care of it, rather than the excess baggage charge. At the same time, minimize the amount of lifting and heaving.

The lowdown on kuaidi (express delivery)

Where else in the world can delivery be carried out on little motorcycles or e-bikes? That’s how costs are kept low. In Shanghai, ingenuous operators harness the local subway as packages are passed over barriers to runners who stay within paid areas shuttling up and down train lines. This makes them the first province to offer same day delivery on Taobao.

For this reason, Western names like DHL and FedEx have yet to become serious contenders in the domestic express delivery industry. If costs can be cut, they will be, with a local ingenuity hard to replicate from outside. Kuaidi firms even give China Post a run for their money through pricing and door-to-door strategies. Lack of industry regulation also means restrictions on items accepted are virtually non-existent. Stories of exploding packages have appeared in the media as someone sent an ex-boss fireworks.

Lack of regulation also means that complaints of varying service standards are rife, from rude couriers to lack of delivery notification for packages left sitting with thedoorman. Deliveries to campuses may be only at designated pick-up points or the kuaidi waits outside the campus with a heap of parcels, waiting for students to bound out.

Losses happen as well. I’ve personally witnessed packages falling off motorbikes on the freeways. Or your package may arrive intact at a loss to your privacy. Less reputable kuaidi firms have been known to sell delivery slips to telemarkers from prices ranging from 0.40 RMB to 1.00 RMB, depending on the level of detail. But at such a price, locals are more than willing to take the risk.

To counter this lack of standardisation, sellers like JD.com and VANCL have their own in-house express couriers. Alibaba outsources to industry heavyweights like SF Express and ZJS Express.

Local kuaidi companies to watch out for

1) SF Express (Shunfeng)
With a smart white logo against a black background, that unfortunately often gets mistaken for SR, this company is the local gold standard for express services. SF Express boasts of a bilingual website with online tracking, their own aircraft fleet and branches in the region. An expedited service, door-to-door next day or two day service across provinces are their norm. Also the courier of choice for Taobao sellers of fragile items and upmarket items.

2) ZJS Express
Founded by a Chinese returnee (haigui) from Japan since 1994, ZJS Express recently signed a joint venture with UK’s Royal Mail in the B2B parcel business. Domestically, they are known for being chosen together with SF Express as one of the logistical pillars in Alibaba’s outsourcing strategy – a seal of service excellence. Provides next day or two day domestic delivery service.

3) China Post’s EMS Service
Perhaps the only option in remote areas, EMS is not the cheapest but costs are still bearable. Usually a choice for those sending heavier or bulkier items askuaidi companies tend to pile on charges as weight goes up. Main complaints are usually limited to having to buy their packaging material, strict screening of items before sending and being absolutely hopeless with breakables. Also, no door-to-door service with send-off and pick-up at designated post offices.

4) Budget Alternatives
When time is not of the essence, Shanghai-based Yuan Tong and Zhong Tong, as well as Beijing’s Yunda offer no-frills, reasonably fast service, although only in Chinese. Prices could be as much as 30% below big names. While service standards are enforced in their province of origin, complaints of inconsistent service in other areas exist.

Before you kuaidi

  1. Ensure you have the address in Chinese – both for the delivery slip as well as when you arrange for pick-up. Bigger companies like EMS, SF Express, Shen Tongand Yuan Tong do claim to provide English service but having a local as a backup may be wise.
  2. Pad breakables well – Express delivery in China, especially those at cheap rates, operate under a Murphy-like law: whatever can be broken will be broken.
  3. Some companies require packages to be unsealed for inspection (especially China Post). Sometimes, this is an opportunity to ramp up charges. For example, sending cosmetics attracts a higher rate than clothing. Have a backup plan for refused items.
  4. Apparently, boxes are routinely opened along the way. Box numbering and keeping an inventory list with you and another in the box may help somewhat.
  5. Bargaining is possible – like most industries where price competition is rife, you might be able to knock some RMB off an already low price.
  6. Other alternatives exist surprise, surprise, there are locals who find courier services expensive (although true for bulky or heavy items). Apps exist for finding nearby individuals happy to function as a kuaidi service in the direction they are going. They may also be more willing to take iffy items refused by kuaidi companies, at your own risk though. If you’ve got something that weighs a ton, a logistics firm(wuliu)may give better rates, albeit without door-to-door service.
  7. Revise expectations it may be unrealistic to expect levels of service you are used to back home for the price you are paying here

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Keywords: kuaidi companies express delivery in China China’s express delivery

2 Comments

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greenchaser

I live around the corner from a Yunda office, its Managed by a pack of scruffy looking shirtless farmers that appear to be paid peanuts, 100's of packages are literally thrown all over the road. I'll take SF anyday, the drivers look respectable.

Jul 26, 2014 16:16 Report Abuse

bill8899

Yunda or Shenfung (SFExpress)!

Jul 23, 2014 14:01 Report Abuse