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Express companies’ end on windfall profit era

Topic: Business OpportunitiesPublished May 7, 2012

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It is said that most Express companies’ margin profit is lower than 5% when express companies’ windfall profit era comes to an end. The whole industry is selecting the superior and to eliminate the inferior.
According to statistics, Shentong Express and some affiliated companies are all adjusting the price at different ranges due to different areas or cost.
On April 10, A senior superintendent accepted an interview, saying headquarter did not issue any formal document to adjust the price, but the agent companies have the authorities to fix prices on their own.
Zhongtong, Yuantong and YunDa are also following suit in price adjustment.
Most express companies made margin profits under 5%, the profits are becoming slimmer.
We can see that the industry has been influenced by rising labor cost and oil price, it is said that before July, the express industry will increase prices once more, every case or package may increase 1 Yuan.
Express companies are the first choice for e-business buyers or sellers to delivery goods.
Such price readjustment may increase online business cost and impair the profit margins directly.
Price advantages are the main point for people to shop online, price increase beyond buyers or sellers expectations may drive them to shop in real shops.
IBUonline is watching e-business industry news.
IBUonline is a B2B foreign trade business platform, which has helped many SMEs to complete foreign trade online.
IBUonline also has cooperated with some logistics companies.
Please go to the homepage for more details.

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