How RFID and E-Commerce Logistics Spark Innovation as 618 Approaches

RFID Technology: A New Engine for E-Commerce Logistics

Since 2017, total online sales during the “618” shopping festival have grown year over year. Although growth has slowed in recent years, the daily parcel volume between June 16 and 20 last year still exceeded 400 million shipments. With this year’s mid-year 618 promotion approaching, major e-commerce platforms and logistics providers are once again facing their annual test. In this nationwide shopping frenzy, improving delivery speed, optimizing courier services, and accurately allocating transportation resources are key to success.

RFID (Radio Frequency Identification) technology is providing solutions to these challenges. Compared with traditional barcode scanning, RFID enables non-contact, bulk reading of items, significantly enhancing visibility and automation throughout the logistics process. Studies show that RFID can improve overall efficiency by over 13%. During high-volume events like 618, the value of RFID is particularly evident, quietly driving a digital revolution in the logistics industry.

Advantages of RFID in Logistics

• Parcel Tracking

Douglas Kent, Executive Vice President of Strategy and Alliances at the Association for Supply Chain Management (ASCM), notes that RFID adoption continues to rise because it significantly improves tracking and traceability—core elements of modern logistics and supply chain management.

In the courier sector, RFID applications are deepening. China Post EMS was among the first to use RFID to enhance end-to-end delivery efficiency, achieving the industry’s first case of 100% accuracy in RFID shipping label recognition. International logistics leaders such as DHL, TNT, FedEx, and UPS have also piloted and implemented RFID to improve service efficiency and reduce operational costs.

• Last-Mile Delivery

In recent years, the logistics industry has explored ways to enhance last-mile delivery efficiency. This stage is the most expensive and time-consuming in the delivery process and presents significant challenges. Factors such as traffic conditions, weather, and customer locations can all affect on-time delivery.

RFID communicates wirelessly with tags attached to items, providing stronger bulk-reading capabilities than barcodes and significantly accelerating inbound and outbound scanning. With RFID, companies can complete delivery processes more quickly and accurately, thereby improving both operational efficiency and customer satisfaction.

Numerous successful applications already exist. SF Express uses RFID for real-time parcel tracking, greatly improving delivery efficiency and customer experience; Huawei Logistics leverages RFID to automate and refine warehouse management, enhancing inventory accuracy; Amazon employs RFID in smart logistics and inventory management, setting a new benchmark for global e-commerce logistics.

RFID Meets the “618” Shopping Festival

During the 2022 618 promotion, RFID-enabled smart warehouse solutions were implemented at over 100 large-item warehouses in JD Logistics. By June 1, inventory checking efficiency had increased more than tenfold, verification efficiency fivefold, and outbound processing efficiency by 150%.

Currently, JD Logistics uses RFID tags throughout the entire large-item supply chain—from factory finished goods warehouses, mainline transport, and front warehouses to end delivery and reverse logistics—achieving full digital tracking and management.

RFID offers features such as tamper resistance, authenticity verification, and automatic tracking, ensuring cargo safety while addressing the inefficiencies of manual processing for large items. Automatic identification via RFID greatly improves inbound and outbound efficiency.

In after-sales reverse logistics and spare parts management, the “one item, one code” feature of RFID prevents mismatched returns and delayed data updates. Automated data collection and sorting reduce pickup and delivery costs while significantly enhancing warehouse operational precision.

For partners, RFID reduces inventory turnover, lowers labor costs, and supports sales growth, fully unleashing supply chain potential.