ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter

E-commerce pushes Yamato's low-cost service to breaking point

Rate hike to fill financial hole could spur imitators

TOKYO -- Yamato Transport is raising delivery rates to undo the financial damage wrought by a deluge of unprofitable e-commerce orders, potentially breaking from a low-price, high-quality business model that has shined in Japan's deflation-plagued economy.

The leading Japanese shipper plans to raise base rates for retail customers 5-20% and seeks even steeper hikes for high-volume customers. The decision comes after the Yamato Holdings unit logged a record 1.87 billion in home deliveries in the year ended March, an increase of 30% from five years earlier, attributable mainly to a surge in internet shopping.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more