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DHL to add US e-commerce distribution

August 4, 2016

DHLThe delivery company is set to build eight new fulfilment centres and improve existing warehouses.

Internet Retailer reported the German company will spend $137 million (€123 million) to build the eight new centres, and “make improvements to existing warehouses”, to “improve its US and cross-border services for e-commerce”, as well as “better enable US merchants to sell products internationally”. DHL currently operates 18 US distribution centres, and “works closely” with the US Postal Service, but wants to “capitalise on the global demand for products made in the US”.

Another reason for the expansion is to “increase its e-commerce footprint in the US”, and Asia-Pacific consumers are expected to “generate much of the growth in e-commerce”, because they “buy goods online that are unavailable or cost too much in their home country”. The business is currently the shipping carrier for 48 retailers in Internet Retailer’s 2016 Top 1,000, such as Amazon, GlassesUSA, Roots Canada and eVitamins.

Pre-existing fulfilment centres are in Los Angeles, Colombus in Ohio and a soon-to-open site in New Jersey, and two more are expected to open in 2017. DHL also noted that it has opened an express service centre in Chicago “that handles international small parcels and shipments on pallets and in freight containers”, its “second such service centre in the Chicago area”. It expects around five to seven percent average annual growth through to 2020, driven by e-commerce.

Charles Brewer, CEO of DHL eCommerce, commented: “It is expected that one billion people will shop online and across borders by 2020 with the US 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 US customers with the best possible infrastructure and solutions, and gain future market shares.”

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