Wenyi Zhang
Research expert covering Greater China
China's courier market - statistics & facts
Since the end of China Post EMS's monopoly in the 1990s and the emergence of private courier companies, China's express delivery industry has been expanding continuously. The country is now the world’s leading sender of courier packages, with companies operating comprehensive land and air transport networks across the country, providing affordable and adequate services. In 2023, more than 80 percent of all courier packages reached their destinations within 72 hours.
Instead of internationally renowned urban centers such as Beijing and Shanghai, Jinhua, a prefecture-level city in the heart of Zhejiang Province, dispatches the highest volume of courier packages in China. Thanks to the city's world-leading wholesale market for small commodities and more than 600,000 e-commerce businesses generating an annual turnover exceeding 400 billion yuan, more than 13.6 billion courier packages were sent from Jinhua in 2023.
In 2005, recognizing the potential of online retail, YTO Express signed an agreement with Taobao, China's leading e-commerce platform. Between 2006 and 2009, the annual number of parcels from Taobao retailers delivered by YTO Express surged from around 730,000 to more than 100 million. With the help of online retail demands, the company is now one of the leading couriers in China, transporting well over 21 billion parcels in 2023.
In 2023, YTO Express recorded a per-package revenue of only 2.41 yuan, with a per-package profit of only around 0.03 U.S. dollars. In comparison, FedEx’s average revenue per package delivered in 2022 was more than 22 U.S. dollars.
Growth attributed to China’s e-commerce sector
In 2023, China had more than 900 million e-commerce customers. The enormous growth of the country’s e-commerce market over the last two decades has long been the most important driving force behind the continuous expansion of China's express delivery industry. The high demand from online retail not only increased the volume of packages, but also motivated service providers to improve infrastructure, service network, and quality across the industry.Instead of internationally renowned urban centers such as Beijing and Shanghai, Jinhua, a prefecture-level city in the heart of Zhejiang Province, dispatches the highest volume of courier packages in China. Thanks to the city's world-leading wholesale market for small commodities and more than 600,000 e-commerce businesses generating an annual turnover exceeding 400 billion yuan, more than 13.6 billion courier packages were sent from Jinhua in 2023.
In 2005, recognizing the potential of online retail, YTO Express signed an agreement with Taobao, China's leading e-commerce platform. Between 2006 and 2009, the annual number of parcels from Taobao retailers delivered by YTO Express surged from around 730,000 to more than 100 million. With the help of online retail demands, the company is now one of the leading couriers in China, transporting well over 21 billion parcels in 2023.
Fierce competition in the market, tight profit margins
China's courier sector is largely centered around domestic online retail deliveries, with market participants generally lacking the ability to integrate and consolidate industrial supply chains or establish global delivery networks. As a result, most Chinese courier companies are highly homogenized, leading to intense competitions in the market. Apart from SF-Express, which enjoys a higher per-package revenue due to its premium services, other domestic courier companies such as STO Express, YTO Express, ZTO Express, and Yunda Express, have long been engaged in a continuous price war, leading to tight profit margins and low yield in the market.In 2023, YTO Express recorded a per-package revenue of only 2.41 yuan, with a per-package profit of only around 0.03 U.S. dollars. In comparison, FedEx’s average revenue per package delivered in 2022 was more than 22 U.S. dollars.
