How much does a courier cost?How much does a courier company make?
In the franchise system of express delivery companies, the express delivery cost mainly includes three major components: sorting, transportation and end delivery. Among them, the end distribution fee accounts for more than half, and the transit cost, including sorting costs and transportation costs, accounts for about 40%.
In the comparison of the operating data of major express companies in 2023, Yunda stands out with the lowest single ticket cost of 2.10 yuan, followed by Shentong (2.15), Yuantong (2.18 yuan) and J&T. It is important to note that ZTO's total cost data does not include delivery costs, so it is not included in the analysis for the time being. In terms of profit performance, Zhongtong stands out with a net profit of 9 billion yuan, which is converted into an average profit of about 0.3 yuan.
The cost of single-ticket transportation will generally remain at about 0.45 yuan, and the five major franchised express delivery will all decline in 2023. Among them, J&T led the way with a decrease of 0.02 US dollars (about 0.14 yuan), followed by Yunda (down 0.11 yuan), Zhongtong (down 0.06 yuan), Shentong (down 0.06 yuan), and Yuantong (down 0.05 yuan).
Not only that, but the cost of sorting per ticket has witnessed a similar downward trend. Among them, J&T continued to lead, decreasing by about 0.14 yuan, Zhongtong decreased by 0.05 yuan, Shentong decreased by 0.05 yuan, Yuantong decreased by 0.04 yuan, and Yunda did not change much.
Entering 2024, the express delivery industry presents a new development dynamic. Some leading enterprises have made a strategic turn, no longer simply pursuing the rapid growth of business volume, but have shifted their focus to consolidating infrastructure construction, benefiting franchisees, and stabilizing networks. At the level of business strategy, enterprises began to slowly give up the "price war", and focused on empowering outlets, reducing costs and increasing efficiency, and upgrading services to enhance competitiveness.
On the one hand, through the construction of a direct connection network between the transit field and the terminal outlets and the implementation of the terminal co-distribution model, we will deeply explore the cost reduction space and improve operational efficiency, and on the other hand, we will launch product stratification services to tap the mid-to-high-end market through time-limited pickup commitments, priority transit processing, telephone notification to customers before delivery and door-to-door services.
Zhongtong: The cost of a single ticket decreased by 16.5%, and the net profit was 9 billion yuan
In 2023, ZTO's revenue increased by 8.6% year-on-year to RMB38.419 billion, and adjusted net profit increased by 32.3% year-on-year to RMB9.0 billion. The annual parcel volume increased by 23.8% year-on-year to 30.2 billion pieces, and the market share increased by 0.8 percentage points to 22.9%, but the revenue per ticket fell by 11.3%.
In terms of single ticket cost, its single ticket operating cost was 0.86 yuan (excluding distribution fees), a decrease of 0.17 yuan compared with 22 years, a year-on-year decrease of 16.5%. Among them, the cost of single-ticket transportation was 0.45 yuan, a decrease of 6 points compared with 22 years, mainly due to the increase in the utilization rate of high-capacity vehicles, the improvement of operational efficiency brought about by the optimization of planning and the reduction of fuel prices on trunk lines, and the operating cost of a single-ticket center was 0.27 yuan, a decrease of 5 points, mainly due to the implementation of the standardization of operating procedures and the improvement of the performance appraisal system. Gross profit margin increased from 25.55% in 2022 to 30.4% in 2023.
Source: ZTO Express 2023 performance report
Zhongtong expects that the annual parcel volume in 2024 will be in the range of 34.73 billion to 35.64 billion pieces, a year-on-year increase of 15% to 18%. However, compared with the high growth rate of 24% in the previous year, the growth target has been lowered. In this regard, industry insiders speculate that Zhongtong is deliberately adjusting its past aggressive strategy of "exchanging price for volume", and instead adopts a more prudent attitude, through appropriate control of the intensity of the price war, and let profits join the outlets to consolidate the stability of the network.
YTO: Ranked second in market share, with a decline in gross profit
In 2023, YTO's revenue will be 57.684 billion yuan, a year-on-year increase of 7.74%, and the net profit attributable to the parent company will be 3.723 billion yuan, a year-on-year decrease of 5.03%. Among them, the revenue of express delivery business was 52.269 billion yuan, a year-on-year increase of 13.27%, the net profit attributable to the parent company was 3.84 billion yuan, a year-on-year increase of 5.15%, and the business volume was 21.204 billion pieces, a year-on-year increase of 21.31%.
In terms of cost, in 2023, the cost of YTO single-ticket express products will be 2.18 yuan, a decrease of 5.99% over the same period last year, and the gross profit of a single ticket will be 0.23 yuan, a year-on-year decrease of 12.98%. Among them, the transportation cost of a single ticket was 0.46 yuan, a decrease of 0.05 yuan, or 9.67%, over the same period last year, the operating cost of a single ticket center was 0.29 yuan, a decrease of 0.02 yuan, or 5.37%, and the cost of distribution was 1.28 yuan, a decrease of 0.05 yuan, or 3.78%, compared with 22 years.
Source: YTO 2023 performance report
In terms of cost control strategy, YTO continues to promote comprehensive digital transformation, focusing on the efficiency of trunk transportation on the one hand, and promoting lean production in the center on the other. For example, increase the proportion of large transport vehicles, throw-and-hang vehicles, bilateral transport vehicles and self-owned vehicles, upgrade site process equipment, and accelerate the improvement of automation equipment efficiency.
Due to fierce price competition throughout 2023, YTO's revenue per ticket is still on a downward trend, from 2.59 yuan in 2022 to 2.41 yuan in 2023. This change led to a simultaneous contraction in gross margin, from 11.12% to 10.27% previously. However, in the first quarter of this year, it has improved, and the express delivery business achieved a net profit of 994 million yuan, a year-on-year increase of about 11.87%.
Yunda: Gross profit has increased, and transportation cost control has achieved remarkable results
In 2023, Yunda's revenue will be 44.983 billion yuan, a year-on-year decrease of 5.17%, the net profit attributable to the parent company will be 1.625 billion yuan, an increase of 9.58% year-on-year, and the express delivery business volume will be 18.854 billion votes, a year-on-year increase of 7.07%, with a market share of 14.28%.
In terms of cost, compared with the whole year of 2022, the total cost of a single ticket of Yunda in 2023 will be 2.1 yuan, a decrease of 0.24 yuan, and the cost and decline of a single ticket are leading among express delivery companies. Among them, the transportation cost of a single ticket was 0.5 yuan, a decrease of 0.11 yuan over the same period last year, the cost of single ticket sorting was 0.37 yuan, which was little changed, the single ticket distribution fee was 1.21 yuan, a decrease of 0.13 yuan over the same period last year, and the gross profit margin increased from 8.39% to 8.52%, an increase of 0.13 percentage points.
Source: Yunda 2023 performance report
Shentong: The growth rate of revenue and business volume led the way, and the gross profit declined
After more than three years of reform, Shentong's recent performance has been remarkable, with rapid growth in business volume and strong recovery in market share. In 2023, Shentong's revenue will be 40.924 billion yuan, a year-on-year increase of 21.54%, net profit attributable to the parent company will be 341 million yuan, a year-on-year increase of 18.41%, business volume will be 17.507 billion pieces, a year-on-year increase of 35.23%, and market share will be 13.26%, a year-on-year increase of 1.55 percentage points.
From the cost side, the core cost items have also been effectively improved, Shentong has continued to improve the sorting efficiency by expanding the application of automated sorting equipment, optimized the capacity structure and route planning of its own fleet, and increased investment in the construction of digital and intelligent capabilities in each link to achieve good cost control. In 2023, the total cost of a single ticket will be 2.15 yuan, a decrease of 0.26 yuan. Among them, the cost of single ticket distribution was 1.35 yuan, down by 0.15 yuan, and the cost of single ticket sorting was 0.37 yuan, down by 0.05 yuan. The transportation cost of a single ticket was 0.41 yuan, a decrease of 0.06 yuan.
Source: Shentong Express 2023 performance report
The change in gross profit margin is similar to YTO, and the decline in Shentong's revenue per ticket has led to a simultaneous contraction in gross profit margin, from 4.24% to 3.91% previously. However, in the first quarter of this year, significant improvements have been made, and the net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 43.2%.
J&T: The cost has been significantly reduced, and the gross profit in the Chinese market has turned positive
J&T's global operating income in 2023 climbed 21.8% to US$8.849 billion, gross profit increased from -US$270 million in 2022 to US$470 million in 2023, adjusted EBITDA turned positive for the first time to US$147 million, and the cumulative number of packages processed for the year was 18.8 billion, an increase of 29% from 2022.
In the Chinese market, J&T's parcel volume in 2023 will be 15.341 billion pieces, a year-on-year increase of 27.6%, with a market share of 11.6%, ranking sixth. The revenue reached US$5.229 billion, the cost was US$5.17 billion, and the revenue and cost of a single ticket were US$0.341 (about RMB 2.47) and US$0.337 (about RMB 2.44), respectively.
Source: J&T 2023 performance report
Compared with 2022, the revenue per ticket in the J&T China market in 2023 will remain unchanged, while the cost of a single ticket will be significantly reduced, from US$0.4 to US$0.34. Among them, the cost of pickup and delivery continued to remain stable at the level of 0.2 US dollars. The cost per shipment decreased by $0.02 from $0.09 in 2022 to $0.07 in 2023. As for the sorting cost, it will be $0.06 in 2023, which is also a decrease of $0.02 compared to $0.08 in the previous year. As for the optimization of cost, J&T said that it is due to the scale effect brought about by the growth of business volume and the continuous optimization of refined operation management.
Source: J&T 2023 performance report
Author | Little Zhou Botong
Source | Logistics Salon
This article is the author's personal opinion and does not represent the position of Logistics Salon