DHL has successfully set up a European ‘local hero network’ to deliver cross-border B2C parcelsin order to take advantage of a widely-expected boom in international e-commerce in the years ahead
as more and more online shoppers buy cheaper or locally unavailable goods on foreign websites.The ‘DHL B2C Parcel International’ unit has signed deals with ‘the best local service provider’to cover virtually all the continent, Andreas Lemmer, service development manager, told a mediabriefing in Milton Keynes, UK, yesterday. “We are convinced this will be an excellentplatform for international B2C deliveries,” he stated.
DHL expects international e-commerce to grow dramatically in the next few years as variousfactors converge, Lemmer explained. These included technological improvements, better onlineoffers, more confident consumers and improved delivery services. Moreover, according to an EU-widestudy in 2009, more than 50% of e-commerce products “should be bought abroad” either because theyare not available within the country or are cheaper from foreign e-retailers, he pointed out.
‘Last mile’ partners for DHL’s B2C network are mostly the public postal operators, such as LaPoste in France, Royal Mail in the UK and Correos in Spain. However, DHL Express is providinglast-mile deliveries in eight European countries (Netherlands, Switzerland, Austria, Italy, Poland,Greece, Romania and Latvia).
The delivery partner is selected on the basis of fair quality and sufficiently low prices,Lemmer explained. By using a mix of postal operators and DHL Express the network retained theflexibility to switch the local partner if necessary, he pointed out.
DHL is offering four core international parcel services: single outbound parcels and singlereturns, consolidated outbound parcel transportation and consolidated returns. Consolidated bulkshipments are transported by DHL into the relevant country and directly injected into the localdelivery network.
For returns, single parcels use a prepaid label that can be recognised by the postal systems inboth countries. Consolidated returns are gathered at local DHL Freight terminals and trucked backto the distance-seller. DHL set up a returns process in 11 European countries (for Germany-boundparcels) last year and plans to add 10 more countries this year.
In terms of marketing, the B2C parcels service is being sold as a product through various DHLunits, including DHL Global Mail, DHL Parcel Germany, DHL Express and DHL Supply Chain. Thesecompanies thus also handle ‘first mile’ pick-ups from their respective e-commerce customers.
DHL Global Mail’s approach for cross-border e-commerce parcels is firstly to secure largevolumes by acquiring major customers, Mark Siviter, managing director sales Europe, explained. Thiswould precede creating and then marketing European B2C products.
In general, DHL Global Mail aimed to become a ‘managed service provider’ for e-commerce shippersoffering optimised delivery options, reverse logistics solutions and integrated customer service,he said.
