DHL Express expects more growth in global e-commerce for B2B

The express and logistics service provider DHL expects that by 2025, 80 percent of all B2B transactions between suppliers and professional buyers will take place through digital channels. A study by DHL forecasts an increase in B2B e-commerce revenues of over 70 percent by 2027, reaching 20.9 trillion US dollars (2019: 12.2 trillion US dollars). The Covid-19 pandemic further accelerates digital transformation.

(Bonn) DHL Express today presented a new white paper titled “The Ultimate B2B E-commerce Guide: Tradition is out. Digital is in.” The study predicts strong growth for the global B2B e-commerce market in the coming years: by 2025, 80 percent of all B2B transactions between suppliers and professional buyers will occur through digital channels. The main drivers of global e-commerce growth are the accelerated digitalization resulting from the Covid-19 pandemic and the fundamentally changed purchasing behavior of the tech-savvy Generation Y, which now predominantly shapes professional purchasing decision processes in companies. The future development of the B2B sector is already reflected in the strong increase in B2C e-commerce over the past years. DHL Express has recorded enormous growth rates, especially during peak seasons such as Easter and Christmas, as well as on mega shopping days like “Black Friday” or “Cyber Monday.” Overall, this led to a 40 percent increase in e-commerce shipment volumes in the B2C business within the global DHL Express network last year.

DHL Express with record results in 2020

This positive business development is also reflected in the company’s financial results: With a revenue of 19.1 billion euros (+11.9 percent) and an operating profit (EBIT) of 2.7 billion euros (+34.9 percent), DHL Express concluded the fiscal year 2020 with the best results in its over 50-year history. Thanks to its international network and the wide range of industry sectors served by the express logistics provider of Deutsche Post DHL Group worldwide, it was able to flexibly adapt to the rapidly changing trade flows during the health crisis. With a presence in more than 220 countries and territories, DHL Express helps consumers and businesses stay connected across borders – even during the Covid-19 pandemic. “Even in times of global shutdowns, globalization has proven resilient, supported by limitless digitalization and the strength of global trade,” said John Pearson, CEO of DHL Express. “These trends have led to more and more consumers shopping online. The pandemic has accelerated this development to an unprecedented extent. At the same time, the number of companies selling their products online in the global market has also risen sharply. It is the combination of e-commerce and global logistics that represents the key to addressing local lockdowns, keeping the economy running, and mitigating the pandemic’s impact for many of our business customers.”

Growth boost in e-commerce due to the Corona pandemic

Not only did B2C e-commerce experience a growth boost due to advancing digitalization and changing consumer purchasing behavior. Even before the pandemic, in 2019, global revenues from B2B e-commerce websites and marketplaces rose by 18.2 percent to 12.2 trillion US dollars¹, already surpassing the market size of the consumer sector. As a result of the Corona pandemic and the accompanying acceleration of digitalization, the global B2B e-commerce volume is estimated to reach 20.9 trillion US dollars by 2027². “We have been facing the pandemic for over a year now,” says Michiel Greeven, Executive Vice President Global Sales at DHL Express. “This year, we have witnessed how digital transformation has accelerated dramatically – developments that previously took a decade have now occurred within a few months. Online shopping and cross-border shipping have become the new normal. This applies not only to B2C retailers but also to B2B e-commerce, as companies have recognized that online sales platforms are crucial for their business success – today and in the future. This is accompanied by an increased demand for global express shipments. DHL Express is very well positioned to support all B2B companies on this journey.”

Enormous potential in B2B e-commerce also driven by millennials

The white paper published by DHL Express identifies factors that accelerate the growth of the global B2B e-commerce market. In addition to general trends such as globalization and digitalization, the forecasts are significantly attributed to the tech-savvy generation of millennials. Already today, 73 percent of all professional B2B purchasing decisions are made by this age group. The experiences of today’s managers who grew up with digitalization in the B2C sector lead to similarly high expectations for B2B transactions. This prompts companies to invest in digital solutions such as sales platforms, which simultaneously offers enormous growth potential. “If companies want to benefit from cross-border trade and new e-commerce opportunities in business-to-business transactions, they must adapt to this changed purchasing behavior. Especially the millennial generation, as future B2B decision-makers, will further drive the digitalization of the industry. In this sector, customer experiences must also align more closely with the advantages of digital B2C experiences. As an international e-commerce specialist, DHL has the knowledge and capabilities to help companies make this transition and realize their full potential,” says Leendert van Delft, Vice President Global Sales Programs and Global E-Commerce.

DHL Express invests to meet high customer expectations in the future

In the fiscal year 2020, DHL Express transported a total of 484 million shipments for its customers (B2C and B2B) worldwide, averaging 9 percent more daily compared to the previous year. To keep pace with significant growth, the business unit continues to invest over 1 billion euros annually in its network and new, state-of-the-art locations around the world to multiply sorting capacities (+65 percent since 2013), hire new employees (+10,000 compared to the previous year), and expand its fleet with new aircraft (+20 cargo planes compared to the previous year). Recently, the company announced the further purchase of eight large cargo aircraft of the Boeing B777 type and cooperation with Smartlynx Malta to expand its fleet with two Airbus A321 cargo planes. With these measures, DHL Express ensures that its global customers can benefit from the global e-commerce boom. To further increase flexibility, the company is also collaborating with the German passenger airline Condor to respond as agilely as possible to demand spikes. Photos/Graphics: © DHL