In remote areas, the notion that shipping isn’t free used to be a widely accepted “common sense.” However, this year, that perception has been transformed.
Just three months ago, Geng Bing, a consumer in Lhasa, faced a delivery fee of 30 yuan when purchasing a suitcase online. Fast forward three months, and during another order attempt, he found that the same item was now eligible for free shipping, saving him from any additional costs.
This significant change is largely attributed to Pinduoduo’s ongoing logistics subsidies for remote regions. On September 9, the platform announced a waiver of the second leg of shipping fees for transitional delivery orders to areas including Xinjiang, Tibet, Gansu, Ningxia, Inner Mongolia, and Qinghai. This means that the logistics transit costs incurred by merchants delivering goods to these regions will now be fully covered by the platform.
“I never expected that after the platform took on the second leg of shipping fees, the merchants would also waive part of the cost, leading to free shipping. It’s such a pleasant surprise,” Geng commented.
Geng first learned about this new policy in October while browsing online. He works in Lhasa and enjoys weekend biking trips or camping with friends and road trips around Tibet to take in the breathtaking high-altitude scenery.
On July 16, Geng purchased a rooftop luggage box on Pinduoduo for over 600 yuan. During a trip to Yanghu Lake, he realized he needed it as his trunk was overflowing. “I packed a folding chair, a folding table, and an outdoor canopy—thankful for that luggage box,” he recalled, reminiscing about a peaceful afternoon spent by the lake.
News of the new policy prompted Geng to check his previous order. He recalled that the 600 yuan included a 30 yuan shipping fee, but when he reviewed the order, he discovered that after three months, the shipping charge had vanished, making it over 50 yuan cheaper now.
“This is fantastic news. It’s impressive that even in far-off Tibet, we can receive deliveries. I didn’t expect that the platform would cover the second leg of shipping while the merchants took care of the first. This allowed us to save 30 yuan on shipping—really surprising. I’m delighted that we consumers in Tibet are being considered,” he shared.
He quickly shared this good news with his friends, saying, “We can save even more on shipping costs when shopping online in the future.”
In Tibet, online shopping joyfully comes with a twist. Geng hails from Jilin and has loved biking since childhood, enjoying the feel of the wind against him. In 2015, he began a cycling journey from Chengdu along National Route 318, ultimately reaching Lhasa.
Many people, including Geng, have found a new perspective on life through their cycling experiences, meeting diverse individuals along the way. These encounters highlighted the richness of lifestyle choices, and he decided to stay in Lhasa for its tranquil, relaxed atmosphere. In 2022, his first purchase on Pinduoduo was a DJI drone, which he found to be much cheaper than on other platforms. “That drone now sits perfectly on my shelf, and I take it along on my outings.”
To treat himself, he sought a high-end mountain bike. “Other platforms charged over 500 yuan for shipping, which was hard to swallow. But on Pinduoduo, the delivery fee was only around 10 yuan, which is incredibly kind to us users in the plateau region.”
When his bike arrived, it was packed with great care and without any damage. As he assembled it, he felt a surge of joy and satisfaction from his purchase, ready to ride with eager excitement.
Beyond large items, Geng frequently buys cycling gear on Pinduoduo, including electric pumps, quick inflators, gears, bone conduction Bluetooth headphones, cycling computers, smart taillights, storage bags, goggles, and face masks. He’s even purchased car mattress pads.
Sometimes, when he misses home, he orders sticky corn from his hometown. When three large boxes filled with corn arrive, he feels pure delight: “How did they manage to send this so far?”
So, how did he experience this newfound “freedom from shipping costs”?
In just three months, the delivery fee dropped from 30 to 0 yuan. Behind this change is a concerted effort. Historically, regions like Tibet and Xinjiang have been challenging for logistics due to their vast and sparsely populated landscapes. However, recent developments such as the Belt and Road Initiative and the Western Development Strategy have propelled infrastructure improvements—more roads, railways, and air routes are enhancing transportation access.
The recently released “2024 First Half of China’s Agricultural E-commerce Development Report” indicates that the logistics costs for moving agricultural products from villages to cities have steadily decreased, from 18% in 2012 to 14.4% last year, with this year seeing a new low of 14.2%.
According to Hong Tao, director of the Business Economics Research Institute at Beijing Technology and Business University, this drop is closely tied to e-commerce platforms increasing logistics subsidies for high-quality agricultural products in western regions, as well as long-term investments in fresh produce cold chain logistics infrastructure.
Pinduoduo has been at the forefront of these efforts. In 2022, they introduced a package shipping model, designating Xinjiang and Tibet as “free shipping zones.” By 2023, they began offering free package delivery services to villages in Xinjiang, and in September 2023, they implemented the new policy waiving transfer fees for remote area orders.
By using Xinjiang as a case study, Pinduoduo’s comprehensive approach is evident: the platform guides merchants to send packages to centralized warehousing in Xi’an, where third-party logistics operators take care of the second leg of shipping. This bulk transport significantly cuts down logistical costs. Additionally, given the scattered nature of communities in Xinjiang, Pinduoduo partnered with third-party service providers to reduce delivery distances to consumers, aiming for package delivery inside 24 hours.
“A new policy addressing high logistics costs has made it feasible for e-commerce to flourish in central and western regions,” noted a senior logistics expert. “The subsidies are not simply cash handouts; they aim to lower logistical expenses and build a sustainable ecosystem involving e-commerce merchants, logistics services, and consumers. This helps western regions integrate into the domestic consumer supply chain.” A small step for logistics, but a giant leap toward boosting development and consumption in the west.
“For the past nine years, we’ve aimed not only to help more unique agricultural products from remote areas reach national markets but also to ensure that consumers in those regions have convenient access to a wide range of product options and can share in the benefits of high-quality e-commerce growth,” said a Pinduoduo representative. “Whether getting goods out of the mountains or into villages, high logistics costs have always been a challenge. Tackling this issue hopes to drive more merchants to engage in the remote market and stimulate consumer growth, enhancing product circulation and activating the market.”
Now, Geng has aspirations of traveling abroad to see more of the world. To improve his English skills, he signed up for an online spoken English course through Pinduoduo, connecting with foreign friends for an hour daily. Each lesson brings him one step closer to achieving his goal.