Core Viewpoint - Recent price adjustments by express delivery companies in regions like Guangdong and Zhejiang are expected to impact e-commerce clients, with price increases ranging from 0.3 to 0.7 yuan per parcel, and a minimum price set at 1.4 yuan per parcel. This change is likely to increase operational costs for merchants, which may be passed on to consumers. The focus should be on improving service quality rather than merely increasing prices [1][2]. Industry Background - The express delivery market has long faced a "volume-price inversion" issue, where companies have relied on low prices to gain market share, resulting in declining profit margins despite increasing business volume. In the first half of 2025, the national express delivery volume reached 956.4 billion parcels, a year-on-year increase of 19.3%, yet many companies reported a decrease in revenue per parcel, with some falling below 2 yuan, highlighting the "increment without revenue" contradiction [1][2]. Price Competition and Quality Issues - In regions with dense express delivery operations, such as Jinhua and Guangzhou, the prolonged low-price competition has severely compressed profit margins, leading to a vicious cycle of price cutting and declining service quality. This pressure ultimately affects grassroots outlets and frontline workers, resulting in low wages and decreased service motivation, which in turn increases consumer complaints [2][3]. Regulatory Environment - Regulatory bodies, including the State Post Bureau, are actively monitoring the express delivery industry's health and opposing "involutionary" competition. They are working to improve end-service quality and create a favorable policy environment for industry enhancement [2]. Tax Policy Changes - Recent tax reforms have provided express delivery companies with relief by standardizing the VAT rate for delivery services at 6%, reducing tax burdens and allowing more resources for service quality improvements. Previously, there were inconsistencies in tax rates across regions, which complicated financial planning for companies [3]. Need for Differentiation - The express delivery industry is trapped in a cycle of price competition due to a lack of differentiation among services. To break this cycle, companies must focus on optimizing operations, upgrading logistics systems, and innovating service models, shifting from a "price war" to a "value war" [3].