China's Singles' Day: 3 Billion Parcels Expected

Alibaba and JD.com, the leading e-commerce companies in China, have once again reported record sales figures during the Singles’ Day shopping festival, which is recognized as the world’s largest. However, industry observers, including journalists and analysts, have noted that these reported numbers are often subject to manipulation, presenting an overly optimistic view of growth. Therefore, they offer limited insight into the actual performance of these companies or the spending habits of Chinese consumers, particularly during the ongoing COVID-19 pandemic.

Despite these concerns, the substantial demands placed on delivery services are clearly evident.

Beginning in the second week of November, I observed a growing accumulation of packages outside my residential building in downtown Shenzhen, awaiting final delivery to individual homes. Delivery personnel were constantly moving through the building, quickly transporting boxes containing items purchased by shoppers during the event’s discounted sales or through promotional offers designed to create a perception of value.

According to a statement from the State Post Bureau, the Singles’ Day period, spanning from November 11th to 16th – encompassing the initial shipping phase following pre-sale events – will see 2.97 billion packages delivered throughout China. This represents a 28% increase compared to the previous year and is equivalent to twice the typical daily delivery volume.

This also translates to an average of over two parcels being delivered to each person in China during the shopping event. Alongside these purchases, there will be a significant amount of packaging waste generated, including cardboard, tape, and bubble wrap. Both JD.com and Cainiao, Alibaba’s logistics division, have initiated programs focused on enhancing the sustainability of online shopping.

While many countries continue to experience rising numbers of coronavirus infections, China has maintained a low rate of local transmission for several months. Consequently, the pandemic has had a minimal effect on delivery speeds during this year’s Singles’ Day, as reported by both JD.com and Alibaba to TechCrunch.

Nevertheless, the companies have implemented new protocols to prioritize both safety and efficiency. JD.com, for example, stated that it is disinfecting its delivery stations and vehicles, and requiring employees to wear protective masks and undergo daily temperature checks – procedures that are now commonplace within China’s logistics industry. Utilizing pre-sale data also enabled the company to strategically position inventory closer to customers in anticipation of demand. They reported that 93% of orders fulfilled through their own logistics network were completed within 24 hours.

Alibaba, conversely, indicated that it has expanded its use of contactless solutions, such as automated warehouses and delivery vehicles. The company’s network of self-service package pickup stations now includes nearly 20,000 units across 150 cities nationwide.

This article was updated on November 13, 2020 to include information from Alibaba.