As such, a particular emphasis on fulfillment and logistics to satisfy this e-commerce demand is under way. Not only are express providers such as SF Express, YTO and STO providing targeted warehousing e-commerce solutions, but e-commerce providers such as Alibaba, 360Buy and Vancl, are creating their own logistics divisions.

Besides warehousing, delivery still remains problematic. The fragmented domestic express market is highly competitive and to achieve a profit is difficult for these providers. However, most e-commerce retailers tend to rely on the top ten largest Chinese domestic express providers, which has resulted in a pricing war among these providers. Still, as logistics competition from e-commerce providers increases, the need to differentiate and make a profit in this market is necessary.

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