Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies

Yinqing Guan

doi:10.47297/wspdecWSP2515-797320.20250912

PDF
Export
Share
Collection
Album

Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies

Volume 9, Issue 12

Views: 0 Downloads: 0

Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies
Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies
IFC, Renmin University of China(Suzhou), Suzhou, Jiangsu, 215123, China
Vol. 9, Issue 12, Pages: 97-101(2025)
Published：30 December 2025
DOI：10.47297/wspdecWSP2515-797320.20250912
Accepted：

Scan QR Code

Guan Yinqing.Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies[J].Development Economics of China,2025,09(12):97-101.
DOI：

Guan Yinqing.Terminal Network Expansion, Price Competition and Profitability Volatility in Express Delivery Companies: Evidence from Chinese Listed Express Delivery Companies[J].Development Economics of China,2025,09(12):97-101. DOI： 10.47297/wspdecWSP2515-797320.20250912.

摘要

Abstract

China's express delivery industry is shifting from scale-oriented to quality-focused development. However

this transition faces a challenge: rising volumes paired with falling prices

leading to profit instability. Using panel data from five listed companies (2016–2024)

this study examines how price competition impacts profit volatility and the stabilizing role of terminal network density. The results highlight three points. First

aggressive price competition significantly intensifies profit volatility (β=2.048

p<0.01)

confirming that price wars undermine financial stability. Second

terminal network density acts as a buffer. It reduces the negative shocks from price competition

helping companies absorb market fluctuations. Third

firms with direct operation models demonstrate stronger risk resistance than franchise-based ones due to better outlet control. These findings offer practical evidence for investment strategies and industry management.

关键词

Keywords

references

Hao J . ( 2021 ). Harm, causes and legal prevention and control of continuous low-price competition in e-commerce express industry . China Business and Market , 35 ( 7 ), 119 - 128 .

Yang J. , Yang C. , & Yao X . ( 2014 ). Research on the "last-mile" issue in the e-commerce logistics system . Journal of Business Economics , ( 4 ), 16 - 22 .

Luo H. , & Chen A . ( 2022 ). Evolutionary game of low-price competition under price subsidy mechanism in e-commerce express industry: Analysis of "price depression" in express industry in Yiwu District in Zhejiang . Price : Theory & Practice , ( 5 ), 163 - 166 .

Sun H. , & Yan C . ( 2019 ). Research on the terminal network layout of urban express delivery under joint distribution . Journal of Wuhan University of Technology (Information & Management Engineering) , 41 ( 2 ), 186 - 190 .

Peng Y. , & Wu L . ( 2019 ). Profitability analysis of Shentong Express Delivery Company . Logistics Technology , 38 ( 3 ), 10 - 13 .

Liu C . ( 2017 ). Study on online retailer decision-making with express cabinet considered . Logistics Technology , 36 ( 6 ), 144 - 148 .

Liu Y. , & Li H . ( 2017 ). The development of China's express delivery industry from the perspective of industrial development . Journal of Capital University of Economics and Business , 19 ( 1 ), 66 - 73 .

Yang M. , & Zhou X . ( 2015 ). Construction of express terminal collaborative distribution mode under the background of "Internet Plus" . Journal of Beijing University of Posts and Telecommunications (Social Sciences Edition) , 17 ( 6 ), 45 - 51 .

Kong J. , Li H. , & Liu X . ( 2022 ). Research on pricing game of express enterprise's terminal service network based on joint distribution . Operations Research and Management Science , 31 ( 11 ), 99 - 105 .

Alert me when the article has been cited

Submit

No data

Related Author

No data

Related Institution

No data

⁰