DHL Invests Big in e-Commerce and Cross Border Growth

Deutsche Post DHL Group today announced a $137 million investment plan for the U.S. domestic and cross-border e-commerce market.

The Group’s objective is to exploit the global B2C e-commerce market for shipments crossing borders which is expected to grow from $400 billion today to a total global volume of $1 trillion in 2020. The announcement was made in conjunction with the DHL eCommerce and DHL Supply Chain divisions, further implementing regionalized fulfillment centers in Los Angeles, Columbus, Ohio, and New Jersey.

“There is barely any other industry that provides such a promising outlook than the e-commerce business. It is expected that one billion people will shop online and across borders by 2020 with the U.S. being the most popular origin for 25 percent of consumers worldwide. With our investments we lay the foundation to expand our leading role in cross-border e-commerce logistics, serve our U.S. customers with the best possible infrastructure and solutions, and gain future market shares,” says Charles Brewer, CEO DHL eCommerce.

The same report also recognizes that by 2022, the Asia-Pacific region is expected to overtake the U.S. as the largest single market for cross-border e-commerce purchases, with 48% of the total volume. Research shows that consumers increasingly buy products online that are either unavailable or too expensive in their home country. The biggest share of these cross-border purchases will revert back to U.S. e-commerce businesses, among other reasons because consumers covet products tagged with the “Made in the U.S.” label. DHL is looking to benefit from these developments and increase its e-commerce footprint in the United States.