Kuaishou E-commerce Expands "Northwest Consolidation" Service to Qinghai, Gansu, and Ningxia

Market Watcher
15 Jul

Kuaishou E-commerce has broadened its "Northwest Consolidation" logistics service to include Qinghai, Gansu, and Ningxia, marking a strategic expansion following its 2024 rollout in Xinjiang and Inner Mongolia. This initiative addresses chronic logistics barriers across China's northwestern regions, where consumers historically faced limited product choices and exorbitant shipping fees while merchants struggled with high distribution costs and market penetration challenges.

The innovative hub-and-spoke model requires sellers to ship goods to designated consolidation warehouses, after which Kuaishou's partnered express carriers handle final deliveries. Results demonstrate striking efficacy: Xinjiang operations launched in March 2024 saw monthly GMV surge 330% within months alongside an 80% buyer increase. Similarly, Inner Mongolia's July 2024 debut recorded 170% GMV growth and 20% buyer expansion. Logistics expenses for Xinjiang merchants plummeted 50-60%, while free-shipping adoption jumped nearly 30 percentage points.

Currently spanning nearly 5,000 sub-categories—including apparel, cosmetics, and household essentials—the service offers merchants multifaceted advantages beyond cost reduction. Participating sellers receive algorithm-boosted search visibility, dedicated storefront pages, and relaxed delivery-time assessments.

Having initially served approximately 50 million residents across Xinjiang and Inner Mongolia, Kuaishou's expanded network now reaches nearly 90 million people. This scaling exemplifies the platform's commitment to democratizing e-commerce access in remote areas. Company representatives affirmed ongoing logistics refinements to eliminate "no free shipping" barriers, accelerate nationwide distribution of quality goods, and catalyze regional market growth.

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