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Economic Watch: E-commerce giants expand free shipping, driving progress in western China

Pub Date:2025-04-17 10:58 Source:Xinhua

HANGZHOU, April 16 (Xinhua) -- For years, high logistics costs and long delivery cycles turned online bargains into offline burdens for many in western China, where free shipping and easy returns were uncommon.

Now, as e-commerce platforms expand their free shipping services westward, consumers in western regions are gaining access to the same convenience long enjoyed by consumers in other regions. From Taobao and Douyin to Pinduoduo, e-commerce giants are reshaping daily life far beyond China's urban core.

BRINGING CONVENIENCE TO DAILY LIFE

In just a few days, a sofa made in Foshan, south China's Guangdong Province, traveled some 4,400 km to Maryam Tuniyaz's doorstep in Baicheng County, Aksu Prefecture in northwest China's Xinjiang Uygur Autonomous Region.

What used to be a slow and expensive process now comes with free shipping and doorstep delivery, allowing Tuniyaz to furnish her new home with a simple click on Taobao.

Tuniyaz is among many consumers in western China now enjoying easier online shopping thanks to expanded logistics and new shipping policies on Taobao. Since Xinjiang was added to the platform's "free shipping zone" last year, shopping has become easier than ever for local residents.

Recently, Taobao expanded its free shipping to include large items like sofas, beds, and toilets. Since March, more than 1 million bulky home products have been eligible for free delivery to Xinjiang, according to Li Fuquan, general manager of the furniture supply chain at Taobao and Tmall Group.

"Offering free shipping on large items doesn't shift the cost to merchants," said Li. "We rely on partnerships with industrial hubs to ship products directly to consumers in Xinjiang. For products not covered by such partnerships, we use the platform's system to aggregate, transfer, and ship across the region, with most of the final delivery costs subsidized by the platform."

Delivery times are also dropping. "In the past, it took more than a week for packages to reach Xinjiang. Now, most deliveries arrive in five to seven days, and some even within 24 to 48 hours," Li added.

BRINGING RELIEF TO LOCAL ENTREPRENEURS

Beyond making daily essentials more accessible, improved logistics are empowering small businesses in the western highlands -- helping entrepreneurial dreams take root in remote cities like Lhasa, capital of southwest China's Xizang Autonomous Region.

Pu Yuhu, a 42-year-old veteran from Baoshan, southwest China's Yunnan Province, now runs a small Yunnan-style takeout restaurant in Lhasa. For Pu, the main challenge was not rent or staffing, but securing ingredients at a reasonable cost.

"Dry chilies cost 14 yuan per bag in Lhasa, but only 9 yuan back home," he said. Traditional wholesale channels, weighed on by high-altitude freight costs, left little margin for profit.

However, the situation has improved as major e-commerce platforms roll out free shipping to China's western regions. Pinduoduo now covers transit fees for remote areas like Xizang, Gansu and Qinghai. Taobao offers free delivery on about 1.7 billion items to places like Xinjiang. Douyin has also expanded its logistics network to reach these areas.

The impact has been immediate. "I'm saving 7 to 8 yuan per customer on ingredients," Pu said. With an average spending of around 80 yuan per diner, the savings represent nearly 10 percent of his costs.

Goods sold from Xizang are also benefiting from improved logistics and the rise of livestream e-commerce. In 2024, the region's online retail sales reached 22.97 billion yuan (about 3.18 billion U.S. dollars), a 67.7 percent increase from the previous year. Online retail sales of physical goods totaled 19.47 billion yuan, up 79.8 percent, according to the regional department of commerce.

BRINGING SHARED LIFESTYLES TO REMOTE COMMUNITIES

Even niche products are now reaching the hands and homes of consumers in western China. This spring, blueberry bonsai has become this spring's unexpected breakout hit on China's e-commerce platforms. Once popular mainly among southern urbanites with sunny balconies, these potted fruit plants are now brightening homes in regions like Xizang, Gansu and Inner Mongolia.

Shipping blueberry bonsai isn't easy -- they require special packaging to protect the delicate fruit and stems. But with support from Pinduoduo's merchant team, repeat orders from new regions quickly followed.

"At the farms, delivery companies like SF Express have set up dedicated collection points, deploying staff and vehicles to ensure the plants travel safely and efficiently over long distances," said Wang Xiaohu, director of the Kashgar municipal postal administration in Xinjiang.

The blueberry bonsai boom highlights a broader trend: As e-commerce platforms break down logistical barriers, China's western regions are gaining easier access to popular cultural trends from the country's major cities.

"As we help more specialty agricultural products from remote mountain areas reach consumers nationwide, we're also working to ensure that residents in those regions enjoy the same variety and convenience as shoppers in major cities," said an executive from Pinduoduo.

In November, China issued an action plan aiming to cut the ratio of social logistics costs to GDP to around 13.5 percent by 2027. The plan sets out to boost economic efficiency by optimizing freight transport, strengthening logistics hubs, and improving the modern logistics service network.

Lower logistics costs not only enhance the shopping experience for consumers, but also bring direct benefits to restaurant owners, farmers, and delivery workers in western China. The continued westward expansion of e-commerce is generating multifaceted development dividends, according to Yang Daqing, a logistics industry expert.

Editor:Zheng Chen

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