By BAI Fan
Each year, the 618 Shopping Festival kicks off as soon as May ends. The event started 18 years ago as a simple anniversary sale for JD.com. It is now China’s second-largest shopping festival. This year, logistical difficulties have changed everything.
Biossance skincare products come from overseas. shipping timelines have become a problem. This year, delivery is delayed, and workers in the US are packing much more slowly than usual. Around 40,000 tons of orders were supposed to be airlifted to China in one go but eventually came in three separate batches, spread over a month. The first two batches were ok, but by the third shipment, the price of freight had almost doubled.
In any case, in locked-down Shanghai, the shipments were stranded in a warehouse at Pudong Airport, under the supervision of Shanghai Customs. Even when the goods are in the warehouse, the problem is not over. If there is a Covid outbreak anywhere, everything grinds to a halt.
Biossance has marshaled extra customer-service staff to answer questions about delivery, but it’s the express delivery companies who have borne the brunt of many angry complaints from customers. During 618, many stores will provide coupons and gifts to compensate unhappy shoppers.
Biossance’s logistics costs have increased by 70 to 80 percent. Cainiao offers discounts on storage and shipping, and Biossance will also bear part of the cost itself, so prices should not be affected.
For larger e-commerce businesses, bargaining power will help them adjust their cost structure, but increased logistics costs may be a dangerous signal for small businesses.
