"Double 11" online shopping festival has come to an end, but for courier companies, the real challenge is still ongoing. With over 100 billion yuan in sales, it translates into hundreds of millions of packages. Delivering these massive volumes efficiently and safely remains a major test for the logistics industry.
Looking back at previous years, the number of parcels surged dramatically. In 2010, there were only 10 million packages, but by 2013, it had reached billions—bringing issues like package explosions and lost items. This year, however, things have improved. According to data from the State Post Bureau, on November 11th alone, major e-commerce platforms generated 350 million express orders, a 59% increase compared to last year. The total number of packages handled by the entire industry during the Double 11 period exceeded 1 billion pieces.
Despite the huge volume, many netizens reported that this year’s delivery speed was significantly faster than last year. That's because courier companies started preparing early this year. They invested in capacity expansion, personnel training, and technological upgrades. Over 100 new or upgraded processing centers were built, equipped with automated sorting systems that reduced labor intensity and boosted efficiency.
SF Express and YTO Express both deployed fully automated sorting systems before the event. For example, SF Express’ Beijing Logistics Park launched its advanced sorting system in August, capable of handling over 40,000 packages per hour—double the previous rate. STO introduced an intelligent robot sorting system, which not only improved efficiency but also minimized damage caused by rough handling.
While large companies have made significant progress, challenges remain, especially in the "last mile" delivery. To address this, SF Express leased new energy vehicles specifically for the Double 11 rush. Yuantong Express expects to deliver 2.4 million packages daily, double the amount from last year. Additional resources include adding 500 more delivery vehicles during the peak season.
New energy vehicles are becoming a popular choice for couriers. Qinghai Province recently issued guidelines encouraging the use of such vehicles with financial incentives. Meanwhile, JD.com has been using drones to deliver packages in cities like Suqian, Xi’an, and Beijing. CEO Richard Liu mentioned that drones now operate in four provinces with planned routes to better serve rural customers.
JD has developed various drone models, including multi-rotor, vertical takeoff, and hybrid-powered ones, capable of carrying up to 30 kg and flying 30 km. These innovations help meet growing demand, but not all courier companies are equally prepared. Some face transportation shortages, transferring packages to other services or failing to collect them properly.
Although automation in logistics is still in its early stages, it's a clear trend. From 2001 to 2014, the automated logistics market grew from less than 2 billion to 40 billion yuan, with a 25% annual growth rate. By 2020, the smart logistics market is expected to reach 140 billion yuan, with e-commerce deliveries contributing 80 billion.
With such a massive market, demand for automated systems, robots, and drones will surge. Micro-motors, as key components, will see increased opportunities. However, rising material costs, fuel prices, and labor expenses could pose challenges for motor manufacturers. Surviving this tough phase and entering a new growth area depends on how well each company can adapt and innovate.
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