eCommerce division
Domestic and international parcel transport
Our core business is domestic parcel transport in selected countries in Europe, in the United States and in certain countries in Asia, in particular in India, and deferred cross-border services to, from and within Europe, as well as to and from the United States. Due to the broad range of business activities and differing presence in the individual markets, no mention of individual market shares can be made. The key competitors of DHL eCommerce vary by geographical market.
The deferred domestic parcel delivery service is provided via our own and partner networks, serving a mix of B2C and B2B customers across all sectors. Our deferred cross-border service provides worldwide shipping solutions to enable our customers to capitalize on strong growth in cross-border trade while meeting their expectations for speed, reliability, price and sustainability.
Fundamental dependence on the global economy and geopolitics
The domestic and international parcel transport offered by the eCommerce division is fundamentally determined by business-to-business transactions (B2B) and merchandise shipments to residential customers (B2C). B2B parcel volumes are therefore linked to the general economic performance of the respective country and region. We respond to typical cyclical fluctuations with capacity adjustments in our networks. B2C volumes are fundamentally subject to the structural trend in e-commerce, i.e., the shift in consumer spending to online retail with associated parcel shipments. In addition, B2C volumes reflect variations in consumer behavior. Cross-border shipments (B2B and B2C) can also be affected by external factors, such as changes in tariffs and trade agreements.
Seasonality of business
The eCommerce division is characterized by seasonal fluctuations throughout the year, which are tending to increase due to the structural growth in online retail. A substantial volume and revenue peak is noticeable during the pre-Christmas season in the fourth quarter, and the revenue effect is further amplified by seasonal surcharges.
Satisfied customers and a high level of delivery reliability
We focus on delivering industry-leading performance as well as quality and service excellence. With this focus, we succeeded in achieving an overall global delivery quality – measured in terms of punctuality – of 95.0% (previous year: 95.4%). Moreover, by expanding our offering to more than 167,000 service points in Europe, including over 53,000 parcel lockers, we are closer to the customer. This also includes the relevant Post & Parcel Germany network for eCommerce customers.
