The Research About the Relationship Between Express Delivery and

Business Revenue in China

Yunzhou Lai

Suzhou University of Science and Technology, Suzhou, Jiangsu Province, 215009, China

Keywords: Express Delivery, Business Revenue, China, Logistics.

Abstract: As e-commerce has grown and logistics have advanced, express delivery has become pivotal in modern

society, transforming consumer behavior and driving economic growth. The surge in e-commerce and

logistics innovations has made express delivery crucial. Serving as the backbone of e-commerce logistics, it

not only creates opportunities and challenges for businesses but also drives expansion and service

enhancements to meet rising market needs. This study discusses the impact of express delivery services on

the revenue of enterprises by analyzing the growth of China's express delivery market and the financial

information of businesses. According to the study, China's economy has experienced rapid growth in recent

years, and e-commerce has emerged, enabling businesses to access more efficient delivery services. The

express delivery sector has grown rapidly because of these factors. By analyzing a certain number of sample

data from enterprises, it was found that the increase in express service is positively correlated with the revenue

of logistics enterprises. This research concludes that delivery services help Chinese businesses expand and

prosper by increasing their revenue. In the future, the researchers suggest further in-depth research into the

impact of express delivery services on different aspects of enterprises to better guide business operations and

government policy formulation.

1 INTRODUCTION

This study concludes that, in contemporary society,

delivery services boost the profitability of Chinese

firms, hence facilitating their expansion and

prosperity. The introduction of expedited shipping

options has changed consumer behavior and shopping

habits. It holds great significance in driving economic

development, promoting industrial upgrading, and

enhancing consumer quality of life. For Express

Delivery Servicees, the market's explosive growth

has created previously unheard-of development

potential, as well as new business opportunities and

challenges.

The flourishing express delivery industry has

grown as a result of the thriving expansion of e-

commerce. As the last stage of the product's

circulation in online commerce, express delivery

services provide consumers with convenient and

efficient product delivery services while also offering

crucial support to e-commerce enterprises.

https://orcid.org/0009-0003-3413-7726

The express delivery industry's explosive

expansion not only supports e-commerce but also

brings new business opportunities and challenges to

enterprises' core business. As the scale of e-

commerce transactions continues to expand, the

express delivery service market is also growing

gradually. Major express delivery companies are

expanding their company's reach and raising the

caliber of their services to satisfy the expanding

consumer demand. Various traditional industry

enterprises have also turned their attention to express

delivery services, expanding their express delivery

services based on their core business and upgrading

to adapt to market changes, and ensure stable

revenues from their core business.

Analyzing the relationship between express

delivery services and enterprises' main business

revenue is of great significance due to the explosive

expansion of the express delivery industry, which

supports e-commerce. The purpose of this research is

to completely examine the significant influence that

express delivery services have on business

278

Lai, Y.

The Research About the Relationship Between Express Delivery and Business Revenue in China.

DOI: 10.5220/0012926600004508

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Engineering Management, Information Technology and Intelligence (EMITI 2024), pages 278-284

ISBN: 978-989-758-713-9

operational performance. This paper provides

references for enterprises to formulate rational

development strategies and operational strategies,

thereby enhancing their operational performance and

competitiveness and promoting the steady and

healthy development of the entire industry.

This paper employs methods such as literature

review, data collection, regression analysis, and case

studies to comprehensively examine the correlation

between the express business and the main business

revenue of the enterprise. The research content

includes analyzing influencing factors, comparing the

impact of different businesses on revenue, and

predicting the impact of future trends on enterprises,

seeking to comprehend their relationship in great

detail.

This essay will be structured as follows: Section 2

will include a literature review, data analysis will be

done in Section 4, an overview of the Chinese express

delivery market will be introduced in Section 3, and

conclusions and future prospects will be presented in

the last part.

2 LITERATURE REVIEW

2.1 Related to Research Background

The Chinese express delivery market, as a typical

representative of the booming service industry in

China, is experiencing rapid development along with

various challenges. Using research results from

multiple scholars, this study examines the current

development status, challenges, opportunities, and

future development directions of the Chinese express

delivery market.

Freund CL and Weinhold D (2004) found in their

study that the rise of the Internet has stimulated the

development of trade, significantly impacting trade

and highlighting the Internet's crucial role in the

global economy. In the context of challenges and

opportunities facing the Chinese express delivery

industry, innovative improvements in service levels

are necessary to adapt to changes in market demand

and achieve sustainable development. Meanwhile,

SUN and YU (2012) argue that the Chinese express

delivery market faces competition from foreign

express logistics giants in the global modern logistics

industry, as well as vigorous development from state-

owned and private logistics enterprises. They propose

competitive strategies such as integrated

development, network operations, product systems,

customer service, and pricing, emphasizing the need

for comprehensive strategic application to address

challenges in a competitive market environment.

The COVID-19 pandemic outbreak at the

conclusion of 2019 has resulted in significant

disruptions to the global economy, affecting various

industries profoundly.Gossling et al. (2020) point out

that this is the most severe economic impact since

World War II, which also affects the Chinese express

delivery industry. Business models have been

transformed as a result of the COVID-19 pandemic,

according to Voorhees et al. (2020). Additionally, Liu

et al. (2024) using the DID method, found that the

COVID-19 pandemic has had a positive impact on the

growth of the Express Delivery Service, but epidemic

prevention and control (EPC) policies have brought

negative effects on the growth of the Express

Delivery Service.

The express delivery industry in China has

maintained rapid growth over the past 20 years, and

has ranked first globally for eight consecutive years,

as noted by LIU (2022). The express delivery industry

not only promotes employment but also makes

significant contributions to the development of the

Chinese economy. China's Express Delivery Service

has continued to grow rapidly despite the economic

disturbances caused by the pandemic in recent years.

The State Post Bureau revealed that the business

volume of national express delivery service

enterprises increased by 29.9% compared to 2020,

reaching 108.3 billion pieces in 2021. This indicates

that the Chinese express delivery market will

continue to maintain rapid growth.

2.2 Methodology

Sykes (1993) believes that multiple regression

analysis is a useful statistical method that attempts to

explain the relationship between a dependent variable

and multiple independent variables. Compared with

simple regression, multiple regression allows

researchers to consider the influence of multiple

factors at the same time, thus more comprehensively

evaluating the contribution of each factor to the

dependent variable.In multiple regression, in addition

to considering the independent influence of each

independent variable on the dependent variable, the

interaction between them can also be considered. This

method is particularly useful for analyzing complex

real-world problems, because it can estimate the

independent influence of each factor while

controlling for additional factors.

In practical applications, multiple regression analysis

can handle any number of independent variables and

can estimate the equation of a hyperplane in multi-

The Research About the Relationship Between Express Delivery and Business Revenue in China

279

dimensional space by mathematical methods, so as to

minimize the sum of squares of errors between the

actual value and the estimated plane. The plane is

related to the coefficients of the respective variables,

and the intercept represents the constant term. For n

independent variables, multiple regression analysis

will estimate the equation of a hyperplane in n-

dimensional space to minimize the sum of squares of

errors. The results of multiple regression analysis can

help researchers better understand the influence of

each factor on the dependent variable, and provide a

scientific basis for decision-making.

In summary, multiple regression analysis is a flexible

and effective statistical method that can be used to

explore the complex relationship between multiple

independent variables and dependent variables,

providing essential data support for research and

decision-making. The data analysis part of this paper

will use the multiple linear regression method to

analyze the relationship between express delivery and

business income in China.

2.3 Related to Perspectives

Cai (2023), through empirical analysis of the total

factor productivity of China's express delivery

industry and listed express delivery enterprises,

reveals several key findings. The Chinese express

delivery market has economies of scale advantages,

which can be utilized to improve productivity by

enhancing scale and technical efficiency. Private

listed express delivery enterprises have great

efficiency, but market development is uneven,

requiring attention to western and rural markets.

Improving market operation efficiency also requires

relying on state-owned enterprises to leverage non-

economic value. Focus should be placed on regional

development in the future, while also improving

productivity, market efficiency, and non-economic

value.

Zhang (2023) points out that the current global

consumer market is moving towards digitization,

necessitating corresponding adjustments. With the

continuous development of technology, consumers

are increasingly inclined towards online shopping and

digital payments, prompting enterprises to accelerate

digital transformation, optimize supply chain

management, and enhance customer experience to

adapt to contemporary consumer trends.

Katarzyna (2023) that more and more major

express delivery companies rely on modern

technology aimed at minimizing harmful substances

released into the environment. By introducing electric

vehicles, intelligent routing systems, and sustainable

packaging materials, the express delivery industry has

made some progress in reducing carbon emissions

and environmental pollution while also providing

consumers with more environmentally friendly

delivery options. This development aligns with the

global trend of sustainable development, reflecting

the continuous enhancement of corporate social

responsibility awareness.

2.4 Summary and Evaluation

Overall, the Chinese express delivery market is

experiencing rapid development, influenced by

factors such as the pandemic, global digitization, and

technological changes. While addressing challenges,

the Chinese express delivery industry needs to

strengthen innovation to adapt to changes in market

demand and improve service levels for sustainable

development. Furthermore, attention should be paid

to digital transformation, the application of

environmentally friendly technologies, and the

enhancement of market efficiency, particularly in

rural markets, and the leveraging of non-economic

value. This paper believes that the relationship

between express delivery services and the revenue of

enterprises' core business is inseparable. High-quality

express delivery services directly drive sales and

market share growth, enhance customer loyalty, and

indirectly promote the revenue of core business.

Express delivery services can optimize supply chains,

reduce costs, and further promote the development of

core business. This paper analyzes the impact

mechanism of express delivery services on the

revenue of enterprises' core business, aiming to

provide references for enterprise managers to better

understand the role of express delivery services in

business operations, thereby optimizing business

strategies and enhancing performance.

3 DEVELOPMENT

CHARACTERISTICS OF

CHINA'S EXPRESS DELIVERY

INDUSTRY

3.1 Historical Development of Express

Delivery Service in China

From the late 1970s to the early 1990s, when China

began implementing the reform and opening-up

policy, China's express delivery industry developed.

At that time, international trade became frequent, the

economy gradually entered a period of rapid

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280

development, and domestic and international express

delivery services increased dramatically, leading to

the rapid rise of the express delivery industry. At that

time, international trade became frequent, the

economy gradually entered a period of rapid

development, and domestic and international express

delivery services increased dramatically, arousing the

rapid growth of the express delivery industry.

From the early 1990s to the early 21st century,

China's market economy witnessed comprehensive

development, and there was a surge in demand for

express delivery services. With the advent of the 21st

century, China's social and economic sectors,

especially e-commerce, experienced rapid

development. The development of the internet also

brought additional opportunities to the express

delivery industry. Some enterprises began to provide

express delivery services independently, such as

EMS, SF Express, and some e-commerce enterprises

started self-delivery and developed into leading

companies, such as JD.com, TB, etc. Additionally,

current types of express delivery companies such as

YTO Express, STO Express, YUNDA Express, ZTO

Express, etc., emerged, providing enormous

development space for China's express delivery

industry.

3.2 Characteristics of China's Express

Delivery Industry

3.2.1 Distinct Regional Characteristics of

Express Delivery Industry Development

There are clear regional differences in China's express

delivery market. Express delivery services are

primarily located in the eastern areas, with notable

discrepancies between the center and western regions,

owing to variations in economic development levels.

The percentage of Express Delivery Service in the

eastern region is 75.2%, the percentage in the central

region is 16.7%, and the percentage in the western

region is 8.1%, according to State Post

Administration statistics from 2023. The percentage

of business revenue in the central region is 14.1%, the

percentage in the eastern region is 76.2%, and the

percentage in the western region is 9.7%.

In the central region, the share of Express

Delivery Service volume increased by 1.0 percentage

points and the share of Express Delivery Service

income increased by 0.7 percentage points when

compared to the same period last year; in the western

region, the share of Express Delivery Service volume

increased by 0.6 percentage points and the share of

Express Delivery Service income increased by 0.7

percentage points.

3.2.2 Seasonal Characteristics of the

Express Delivery Industry

The express delivery industry exhibits strong

seasonal characteristics in terms of order volume.

Peak consumption during holidays and the fourth

quarter of each year, which represents a peak in social

trade and transportation business, form the peak

season for express delivery service demand.

Conversely, during the Chinese New Year holiday,

business activities are inactive, representing the low

season for the express delivery industry.

Using 2023 as an example, the express delivery

industry generated 124.14 billion RMB in revenue in

November of that year, with a volume of 13.64 billion

pieces. Express delivery income was 1.46 times

higher than that of February in the same year, while

its volume was 1.486 times higher than that of the

same month the previous year. The aforementioned

data make it clear that the express delivery sector has

seasonal volatility characteristics.

3.2.3 Significant Differences in Specialized

Express Delivery Services

There is a significant gap between the different

specialist express delivery services. Cross-regional

services contribute the majority of income in the

express delivery industry, highlighting the

commercial importance and status of cross-regional

express delivery services.

In contrast, express delivery in different places has

higher business volume and revenue than same-city

and international/Hong Kong-Macao-Taiwan. In

2023, the proportions of same-city, cross-regional,

and international/Hong Kong-Macao-Taiwan

Express Delivery Service volume were respectively

10.3%, 87.4%, and 2.3%, and the proportions of

business income were respectively 5.9%, 49.7%, and

11.6%.

3.3 Development Trends of China's

Express Delivery Industry

China's express delivery industry is experiencing

steady growth as a result of the development trend.

The steady growth in revenue and business volume of

China's express delivery industry from 2014 to 2023

in Figure 1 is a testament to the industry's continuous

expansion. The increase in business volume has

driven the growth in revenue, demonstrating a clear

The Research About the Relationship Between Express Delivery and Business Revenue in China

281

positive correlation. Data from the past decade shows

that the average revenue was approximately 6.336

trillion yuan, and the average business volume was

approximately 728.11 billion pieces, indicating

relatively stable growth momentum in the express

delivery industry during this period.

Figure 1: China express business revenue and business

volume development trend chart.

4 DATA ANALYSIS

4.1 Data Analysis Method

The data for this paper are sourced from the financial

reports published on the official websites of various

companies.

This study employs multiple regression analysis

method, and the formula studied is as follows:

Total Revenue = α + β * Express Delivery

Service Revenue + β1 * Material Sales Business

Revenue + β2 * Freight Forwarding Business

Revenue + ε (1)

Logistics Express Delivery Service revenue,

material sales revenue, and freight forwarding agency

revenue are selected as the research data objects.

Logistics Express Delivery Service revenue plays a

critical role in enterprise financial management as a

key financial indicator. With the increase in logistics

Express Delivery Service revenue, the company's

market share will correspondingly expand, helping to

enhance the company's position and influence in the

industry. Material sales revenue is of significant

importance in enterprise financial performance, and

its increase strengthens the company's position and

competitive advantage in material supply chain

management. Similarly, freight forwarding agency

revenue (X3) is an critical component of enterprise

transportation services, and its increase will

contribute to enhancing the company's position and

reputation in the freight forwarding agency market.

Therefore, this study selects logistics Express

Delivery Service revenue, material sales revenue, and

freight forwarding agency revenue as the research

objects.

The data show the impact coefficients and statistical

significance of various express delivery companies

on the revenue of the company's core business. The

coefficients reflect the extent to which express

delivery companies affect the revenue of the

company's core business, while the P-value indicates

whether this impact is statistically significant. Larger

coefficients and smaller P-values both signify a more

significant impact.

4.2 Regression Analysis of the Impact

of Various Business Revenues

4.2.1 Significant Differences in Specialized

Express Delivery Services

From the Table 1, it can be seen that the coefficient

for STO Express reaches a significant positive level

at the 1% significance level, at 0.990. This indicates

that the revenue from STO Express's Express

Delivery Service has a significant positive effect on

its core business revenue. Similarly, the coefficient

for ZTO Express is also significant at the 1% level, at

0.995, indicating that the revenue from ZTO

Express's Express Delivery Service also has a

significant positive effect on its core business

revenue. Additionally, the regression results for YTO

Express, SF Express, and JD.com are consistent with

the aforementioned two companies, adequately

demonstrating that the Express Delivery Service of

these companies has a significantly positive impact

on their core business revenue.

Building upon the above research, this study

additionally created relevant trend charts. Through

Figure 2, this paper can observe that the trends in total

revenue for STO Express, ZTO Express, YTO

Express, SF Express, and JD.com are totally

consistent with the trend in Express Delivery Service

revenue. This demonstrates a significant correlation

between the two.

Table 1: Regression result—Basic.

Coeffi

cients

Standa

rd error

t Stat

P-

valu

Lowe

95%

Uppe

r 95%

STO

Express

0.990 0.010 94.849

0.00

0.945 1.035

ZTO

Express

0.995 0.014 68.668

0.00

0.932 1.057

YTO

ress

1.081 0.032 33.335

0.00

0.942 1.221

Express

1.014 0.004

253.48

0.00

1.002 1.027

Logistics

7.419 0.932 7.963

0.00

4.832

10.00

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282

Figure 2: Express business and enterprise main business

income trend chart.

4.2.2 Regression Analysis of Material Sales

Business Revenue Impact

Table 2: Regression result—material sales income.

Coeffi

cients

Stand

ard

erro

t Stat

P-

value

Lower

95%

Upper

95%

STO

Express

2.341 4.008 0.584 0.618 (14.905) 19.587

ZTO

ress

1.248 0.445 2.803 0.107 (0.668) 3.163

ress

0.551 0.208 2.644 0.077 (0.112) 1.213

From the Table2, it can be observed that the P-value

for STO Express is 0.618, indicating that the revenue

from STO Express's material sales business does not

have a significant positive impact on its core business

revenue. Similarly, the coefficient for ZTO Express is

0.107, indicating that the revenue from ZTO

Express's material sales business does not have a

significant positive impact on its core business

revenue. Additionally, the regression results for SF

Express are consistent with the aforementioned two

companies, adequately demonstrating that the

material sales business of these companies does not

have a significant positive impact on their core

business revenue.

4.2.3 Regression Analysis of the Impact of

Freight Forwarding Business Revenue

From the Table 3, it can be seen that the coefficient

for ZTO Express is also significant at the 1% level, at

1.072, indicating that the revenue from ZTO

Express's Express Delivery Service also has a

significant positive effect on its core business

revenue. Additionally, the regression results for YTO

Express are consistent with ZTO Express, fully

demonstrating that the freight forwarding business of

both ZTO Express and YTO Express has a

significantly positive impact on their core business

revenue.

Table 3: Regression result—freight forwarding income.

Coefficient

Standard

erro

t Stat

P-

value

Lower

95%

Upper

95%

ZTO

ress

1.114 0.084 13.323 0.006 0.754 1.473

YTO

Express

1.072 0.222 4.835 0.040 0.118 2.025

4.3 Reason Analysis

The underlying reasons behind this phenomenon are

worth exploring. The success of the e-commerce

industry has a direct impact on the rapid development

of the Express Delivery Service. The demand for

express delivery services is on the rise as the e-

commerce market expands. Express delivery services

are essential for meeting the demand created by the

rapid expansion of the e-commerce industry's market,

due to their efficient and reliable logistics services.

The rapid development of the Express Delivery

Service is directly affected by the success of the e-

commerce industry. The demand for express delivery

services is on the rise as the e-commerce market

expands. To meet the demand created by the rapid

expansion of the e-commerce industry's market,

express delivery services are essential, as they

provide efficient and reliable logistics services. By

providing superior-quality express delivery services,

these companies can enhance customer satisfaction,

increase customer loyalty, and consequently promote

the growth of their core business. Furthermore, the

continuous expansion of network coverage provides

customers with more convenient service experiences,

further attracting more customers. The sustained

development of the e-commerce industry provides

continuous momentum for express delivery services.

As consumer demand for online shopping continues

to increase, it drives the flourishing development of

express delivery services, thereby providing a stable

guarantee for the continuous growth of core business

revenue for companies.

5 CONCLUSION

The relationship between express delivery services

and core business revenue is closely related and

mutually reinforcing. Firstly, the provision of express

delivery services has a direct positive impact on a

company's revenue. This is because the timely

delivery of products through express delivery

services ensures that products are delivered to

customers on time. This rapid delivery process not

only meets customer needs but also promotes sales

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283

volume growth, thereby promoting the growth of core

business revenue. Secondly, high-quality express

delivery services not only improve customer

satisfaction but also establish an excellent brand

reputation for companies. This additionally enhances

customer trust, thereby increasing customer loyalty

and repurchase rates. Customer satisfaction with

express delivery services reflects the company's

attention to customer needs and the professionalism

of its services. The company earns the respect and

trust of customers, which not only promotes repeat

purchases from existing customers but also attracts

more current customers, injecting sustained

momentum into the growth of core business revenue.

Given the close relationship between express

delivery services and core business revenue, the

government can support the growth of the Express

Delivery Service through the establishment of special

funds to encourage technological innovation and

equipment updates, thereby promoting industry

development. This can improve the efficiency and

quality of express delivery services, better supporting

the development of core business revenue and

promoting revenue growth. In addition, the

government can encourage companies to strengthen

internal management by incorporating express

delivery services into their development strategies.

Encouraging collaboration and communication

between internal departments to achieve resource

sharing can also promote overall competitiveness.

Furthermore, the government can promote external

cooperation by encouraging companies to establish

stable partnerships with express delivery companies

and logistics service providers to jointly optimize

delivery solutions, improve service levels, and

enhance brand image and revenue growth. Through

these measures, the growth of the Express Delivery

Service can be effectively promoted, providing strong

support for the growth of core business revenue.

With the continuous progress of technology and

the innovative development of the express delivery

industry, the relationship between express delivery

services and core business revenue will become even

closer in the future. It is expected that express

delivery services will become more intelligent and

personalized in the future. Through big data analysis

and artificial intelligence technology, express

delivery companies will be able to better meet

customer needs and provide higher quality services,

further enhancing customer satisfaction and loyalty.

Meanwhile, with the advancement of globalization,

express delivery services will also face broader

market opportunities. Companies will be able to

further expand market share and increase core

business revenue sources through cross-border e-

commerce and international logistics cooperation.

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