E-commerce and express delivery companies in Xinghua city, East China's Jiangsu province, have changed gear and moved onto the path to peak operations, after achieving integrated development.
Xinghua is home to many e-commerce enterprises, mainly focusing on the food and seasoning sectors. Profits rely on sales, express delivery prices and transit times have a crucial impact on their survival and development.
In February 2022, five local express delivery companies established a joint distribution center in the hunt to maximize profit.
However, due to the control of the market and price manipulation by the distribution center, the cost of sending express delivery for enterprises greatly increased, resulting in some e-commerce companies being shut down, withdrawn, or transferring operations to outside the city.
To break the manipulation of market prices by the distribution center, Xinghua introduced Jiangsu Sitong Modern Logistics, a State-owned company to the city.
Xinghua then reorganized the distribution center and established a sound price competition mechanism.
To increase e-commerce business, the distribution center has also established the Xinghua Agricultural Products E-commerce Cold Chain Logistics Industrial Park, fostering the agglomeration of e-commerce companies.
At present, there are 13 express delivery companies and branches in Xinghua. From January to November in 2024, 1.18 billion standard postal deliveries and 121.71 million express deliveries were completed, representing an increase of 31.52 percent and 22.31 percent respectively compared with the same period in 2023.