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Internet giants and delivery services prepare for huge Singles Day

Internet giants are gearing up for the Singles Day shopping spree in November, and they’re beefing up efforts in the logistics sector to ensure smooth delivery
Ti Gong

Internet giants are gearing up for the Singles Day shopping spree in November, and service providers in the logistics sector are beefing up efforts to ensure smooth delivery of goods following the world's largest online shopping festival.

China Express Association expects the total number of packages in the week following Singles Day to reach 1 billion this year, an increase of nearly 50 percent from last year’s 657 million.

Sun Kang, secretary general of China Express Association, told an industry forum in Shanghai today that the peak delivery season following the Singles Day shopping spree, which falls on November 11 each year, has become a major test for the domestic courier service industry.

Courier companies have invested in smart devices to allow for more efficient dispatch and delivery of packages, and Cainiao Network will also provide more detailed predictive figures so that courier companies can make preparations for their delivery capacity in advance. 

Vice president of Cainiao Network, Shi Miao, said it will encourage all industry partners and companies to ensure the efficiency of the last-mile delivery of packages. It will allocate 1.5 billion yuan (US$227 million) in subsidies during the peak delivery season for vendors and logistics partners to leverage from its smart logistics network and to offer smooth delivery to consumers.

JD.com also said today its logistics affiliate will offer 660 million yuan worth of subsidies and discounts for online vendors and courier companies to cut delivery costs for e-commerce sellers.

JD Logistics Business Group was set up earlier this year in order to leverage from the company’s technology and logistics expertise to provide smart supply chain and logistics services.

It currently operates seven logistics centers and 335 warehouses nationwide, serving not only JD’s vendors but external online retailers as well, in order to fulfill online orders.

Unlike Cainiao Network, which works with other logistics companies as opposed to having its own physical presence, JD invested in its own warehouse and dispatch centers to make sure merchandise is delivered by dedicated team of couriers on time.


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