Delivery firm Shentong stops service for 360buy.com

Shanghai-based Shentong Express Co has terminated part of its cooperation with 360buy.com since Monday, the online retailer told the Global Times Tuesday.

"Shentong has been informing our suppliers it will stop delivering their goods to 360buy's allocating centers during the past few days and has stopped their services since Monday. We are still trying to find out the reasons," 360buy.com said in a statement sent to the Global Times by e-mail.

This decision is not aimed at any suppliers of 360buy.com or the company itself, but follows the regulations of the State Post Bureau (SPB) that forbid vicious competition in the sector, given that 360buy also offers delivery services, said Liu Rongkun, vice president of Shentong Express Co.

"We will continue to deliver parcels directly from suppliers to consumers for 360buy.com. But as for the parcels that are sent to 360buy.com by suppliers, we will not deliver them to its allocating centers, since the company has already got the delivery license from the SPB in June," said Liu.

360buy.com said Shentong's move will not affect the consumers' online shopping experience and its business is operating as usual. Other Chinese express companies like SF Express Co so far did not follow the example of Shentong, said 360buy.com.

However, some experts expressed concerns that other express companies will also stop delivering suppliers' goods to 360buy.com's allocating centers, as their staff have to spend at least three hours in queue before entering the centers which increase express companies' costs.

"We could barely do other deliveries when being assigned to deliver goods to 360buy.com," a Beijing staff of a leading private express company told the Global Times Tuesday on condition of anonymity.

Xia Zubin, market director of Shentong, also talked about the problem on his Sina Weibo Monday, saying the quantity of parcels to 360buy.com is large and the delivery consumes a lot of time, which should be handled by transport companies instead of express companies.

Domestic express companies should consider to exit such delivery business and 360buy.com should employ transport companies for this, said Xu Yong, chief advisor at China Express Consulting Website.

Xu noted that the revenues or business volumes of express companies like Shentong will not be affected by such decision.