China’s economy is slowing down, with various industries facing severe internal competition. Recently, Guangdong Express raised prices by as much as 50% under the banner of combating internal competition, sparking discussions.
According to a report from “Southern Metropolis Daily” on August 6, against the backdrop of various industries combating internal competition, a new round of price hikes in the express delivery industry is on the horizon. Starting from August 4, the base price of express delivery in Guangdong Province increased by 0.4 yuan/ticket, with an average price exceeding 1.4 yuan. As per the requirements of relevant authorities, all companies must not charge less than the 1.4 yuan cost price, otherwise they will face heavy penalties.
Several express delivery industry insiders confirmed the news to reporters, stating that “indeed prices have increased, and the rate cannot be lower than 1.4 yuan for 0.1kg, it has already begun.”
The base price of express delivery (also known as the “shipping price”) refers to the fees charged by express delivery companies or logistics service providers for sending parcels, which mainly affects e-commerce sellers.
A full media outlet focusing on the digital express logistics industry, “Express Observer,” stated that the annual price hikes in express delivery have arrived earlier than usual this year. In early August, following a slight increase in Yiwu, Guangdong witnessed a significant price hike.
In line with the requirements to combat internal competition, cities like Guangzhou, Foshan, Zhongshan, and Shenzhen stipulated that the shipping price per 0.1kg should not be less than 1.4 yuan, with Jieyang, Shantou, and other Chaoshan regions following suit, meaning that companies will raise prices by 0.4 to 0.5 yuan on the existing basis, with an increase of up to 50%.
The article expressed concerns from industry insiders that similar to previous price hikes, this round began with excessive publicity, issuing price increase notices to customers, resulting in customers choosing other express delivery services, ultimately leading to the price hikes being shelved. In the context of e-commerce also struggling with internal competition, many sellers’ profits come from express delivery fees. If the express delivery industry fails to act uniformly, price hikes may once again prove to be futile.
This news has also generated online attention.
Netizens commented, “The price hike is quite significant!” “Is combating internal competition the reason for the price increase?” “Are price hikes to clear inventory starting again?” “When market actions face administrative interference, it won’t last long, and the rebound will be even greater, leading to consumer contraction.”
“It is evident that internal competition is caused by the monopolistic environment of e-commerce platforms suppressing e-commerce businesses to lower prices, resulting in this situation. What’s the deal with express delivery in this? Isn’t this a distraction? Dodging the issue allows e-commerce to continue false advertising, selling counterfeit products, and promoting the sale of low-quality, low-priced goods, right?”