360buy, one of the largest general online retailer announced yesterday charging US$ 79 cents (about RMB 5 yuan) of shipping fee on orders under $6 (about RMB 39 yuan), a move signaling the Beijing-based company which raised $1.5 billion in Series C from various venture capitals including Tiger Fund and DST with a valuation of over $10 billion also felt the winter chill and is trying to reduce its expenses, a reflection of what Chinese ecommerce sites are facing now under rising logistics costs.

The company’s move echoed by a public speech given by Letao CEO Bi Shen. According to Bi, rapid growth in delivering goods and campaigns resulted in Chinese ecommerce industry’s shabby revenue stream.

360buy which uses large chunk of its funding to beef up its own logistics service currently deliveries to 183 Chinese cities through its logistics arm while the number will reach 300 in next year.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.