Courier Companies Dive into Livestream E-commerce
Author: Zhou Wenjun
Source: E-commerce News Pro
Courier companies are now venturing into livestream e-commerce.
Livestream e-commerce has reached a fever pitch, with platforms like JD.com and Taobao, as well as short video platforms like Douyin and Kuaishou, dominating the market. Unexpectedly, courier companies are also jumping into the fray.
Recently, SF Express has been the most active in exploring livestream e-commerce. In August, SF Express quietly launched a livestream e-commerce feature on its WeChat mini-program, covering everything from adding items to the cart, placing orders, shipping, tracking logistics, and receiving goods, all within the SF Express mini-program without the need to switch to third-party platforms. The products mainly include fresh fruits and other agricultural products.
Previously, SF Express helped farmers in fresh produce areas find e-commerce influencers to promote their products and collaborated with companies like Oriental Selection for livestream e-commerce. Additionally, SF Express proposed the “Livestream E-commerce Solution+” to explore ways to upgrade agricultural e-commerce.
In fact, a few years ago, some courier companies had already started livestream e-commerce. This is not SF Express’s first foray into the field. In May 2020, ZTO Express held its first livestream, with ZTO Group Chairman Lai Meisong personally appearing in the livestream room to support the event. On the first night of the livestream, the total sales (GMV) exceeded 15 million yuan, generating over 1.1 million orders.
At the end of September this year, CCTV Finance reported on ZTO’s warehouse livestream e-commerce activities. ZTO set up the livestream room in its ZTO Cloud Warehouse, where goods are stored, allowing sold items to be shipped within 24 hours. Consumers can see the shelves of displayed products and the entire process of their purchased items being packed and shipped through the livestream.
Meanwhile, other courier companies such as Deppon, JD Logistics, China Post, and Yunda have also ventured into livestream e-commerce.
Although many companies are experimenting with livestream e-commerce, only China Post has managed to stand out. Since last year, various branches of China Post have intensively engaged in livestream e-commerce on the Douyin platform, selling products including beauty and skincare items, agricultural products, and cultural and creative stamps.
According to Chan Mama’s data at that time, Jinjiang Post was the best-performing among all Post livestream rooms, with nearly 25 million yuan in sales within 30 days. Currently, Jinjiang Post has 1.073 million followers.
Compared to other courier companies, China Post’s livestream e-commerce efforts have been relatively successful. However, within the overall livestream e-commerce ecosystem, China Post’s influence remains small, with each branch’s follower count ranging from tens of thousands to just over a million.
It is clear that livestream e-commerce, which many courier companies are investing in, is not easy to master.
Despite the challenges, livestream e-commerce offers a new growth opportunity, as the traditional courier logistics market has entered a fiercely competitive phase, with price wars continuing. Especially since the beginning of this year, the per-package revenue for courier companies has been continuously declining, limiting their growth potential.
This has compelled courier companies to look to livestream e-commerce to boost profits and find new growth avenues.
Opportunities and Challenges
So, why are courier companies choosing livestream e-commerce as a new business increment?
The “2022 China E-commerce Market Data Report” shows that the livestream e-commerce market reached 3.5 trillion yuan in 2022, a year-on-year increase of 48.21%.
According to Dian Shubao’s data, the livestream e-commerce market size in the first half of 2023 was about 1.9916 trillion yuan. The total market size for livestream e-commerce in 2023 is expected to reach 4.5657 trillion yuan, a year-on-year increase of 30.44%.
This indicates that, at least in terms of market size and development trends, livestream e-commerce continues to grow and is worth exploring by courier companies looking to capture a share of the market.
However, livestream e-commerce has become a highly competitive “red ocean,” posing challenges for courier companies entering the field. To compete with top livestreaming organizations and influencers, they need to invest significantly.
Firstly, compared to popular influencers, courier companies lack consumer recognition. Courier companies, which “do not understand the internet,” struggle to build brand awareness and consumer trust, necessitating greater investment in traffic and exposure.
Influencers with high traffic and visibility can quickly establish their brand image. For example, since joining Douyin last year, Yu Minhong and Oriental Selection quickly amassed a large following. Now, Oriental Selection’s Douyin account has 30.883 million followers, and since joining Taobao in August this year, it has already gained 2.752 million followers.
Secondly, courier companies are weak in areas like livestream operations, product selection, quality control, and influencer resources. For example, although China Post has managed to stand out, it has faced quality control issues. In December last year, a customer complained that the KN95 masks purchased from China Post’s livestream room were not as advertised.
These issues can hinder the sales conversion of courier companies’ livestream e-commerce businesses.
On a positive note, courier companies’ advantages in logistics can be a strong selling point.
Courier companies often have extensive networks and strong logistics capabilities. For instance, China Post has nearly 9,000 collection and delivery departments, 54,000 business offices, 43,000 delivery service points, and 420,000 well-equipped cooperative Youle Station resources, with 100% rural coverage.
Furthermore, livestreams hosted by couriers can offer comprehensive services, helping merchants sell products without charging high fees or commissions, attracting more merchant clients. Merchants are willing to let courier companies clear remaining stock at low prices, providing couriers with an advantage in low-cost sales.
In summary, courier companies venturing into livestream e-commerce face both opportunities and challenges. Whether courier livestreams can achieve larger scale remains to be seen.
Focus on Fresh and Agricultural Products
Looking at the products featured in courier companies’ livestreams, fresh and agricultural products are their main focus.
SF Express, for instance, primarily sells seasonal fresh products in its livestreams. During a livestream session on July 28 this year, SF Express sold products like Sunshine Rose Grapes from Sichuan, fresh walnuts from Daliangshan, Red Heart Kiwi from Pujiang, and peach blossom plums from Hanyuan.
In August, ZTO Cloud partnered with several companies to form strategic alliances. ZTO Cloud Warehouse Technology aims to optimize the logistics supply chain in Yunnan, focusing on agricultural product display and trading, deep processing, smart warehousing, and cold chain logistics, continuously promoting the upward mobility of local agricultural products like avocados.
During this year’s “919 E-commerce Festival,” China Post’s livestream hosts across the country actively promoted agricultural products. Additionally, China Post launched the “Postal Aid for Farmers – Ten Thousand Livestreams” campaign, forming a livestream product pool primarily based on agricultural products from local bases.
Meanwhile, JD Group partnered with Dengzhou to offer e-commerce operation services and livestream events. Merchants without a JD store could use JD Farm’s e-commerce team services to sell products in the “JD Farm Flagship Store,” managed by JD Farm’s store operations team.
According to JD Logistics data, the number of express orders for agricultural products processed by JD Express in the first half of this year increased by about 80% year-on-year.
In a highly competitive livestream e-commerce market, courier companies focusing on agricultural products can leverage their advantages and resources in the fresh and agricultural product fields to create a differentiated competitive edge.
Moreover, fresh and agricultural products have high logistics and transportation loss rates. By selling products directly through their own livestreams, courier companies can shorten the sales chain, reduce loss rates, and better utilize their strengths in logistics. This also helps farmers expand their sales channels, contributing to rural revitalization.
E-commerce and courier services are closely intertwined. As courier companies continue to improve the infrastructure and services of their livestream e-commerce businesses, both industries are likely to develop synergistically.
