Increased E-commerce Sales Putting Big Pressure on Delivery Companies

via TechWeb

China has been experiencing impressive growth in the e-commerce sector, and that growth has also been a windfall of sorts for Chinese delivery companies, who are delivering more packages than ever thanks to increased online shopping. But as orders rise, so too does the pressure, and speed expectations are high, especially for online shoppers in cities who often expect things delivered the next day (even if they didn’t choose overnight shipping).

This pressure has caused some delivery companies to raise their prices, and others to work their people harder than ever. In fact, increased pressure may even have been a factor in the sudden death of delivery company employee Huang Zuopeng yesterday. Huang was discovered dead in a company dorm, and friends and coworkers say they suspect that the constant overtime work and stress may have contributed to or even caused his death.

Of course, that’s pure speculation (for now, at least). But it’s no secret that the end of the year and the run-up to Chinese new year is often a busy time for delivery companies, and this year has been worse than ever because of the huge volume of online purchases being made.

If e-commerce growth continues — and we suspect it will — delivery companies will be forced to take steps to reduce pressure on their employees. That might entail raising their prices, which wouldn’t be popular with Chinese consumers and could hurt China’s e-commerce market. We’ll have to wait and see.

Whatever happens, we certainly hope there won’t be any more deaths caused by pressure from e-commerce (if that turns out to be what really happened here). No business’s bottom line is worth that.