E-commerce & global logistics provides the key to unlock local shutdowns: DHL Express

In its new Whitepaper, ‘The Ultimate B2B E-commerce Guide: Tradition is out. Digital is in’, DHL Expres predicts strong growth for the B2B e commerce market in the coming years. 80 per cent of all B2B sales interactions between suppliers and professional buyers will take place in digital channels by 2025. The impact of the Covid-19 pandemic on the pace of digitalisation and the purchasing behaviour of technology-savvy millennials, who are now of an age to be the professional B2B decision-makers, are the main drivers of this global e-commerce growth. What is predicted for the future of the B2B sector, has already been visible in the significant B2C e-commerce rise over the last years, where DHL Express experienced high growth rates particularly during the holiday peak seasons (e.g. Easter, Christmas) and mega shopping days (e. g. Black Friday, Cyber Monday). In total the B2C E commerce volumes within the DHL Express network increased in 2020 by approximately 40 per cent, compared to 2019.
This positive business development is also reflected in the FY2020 financial results of the company: With a total revenue of €19.1 billion (+11.9 per cent year-on-year) and EBIT of €2.7 billion (+34.9 per cent) the Express division of Deutsche Post DHL Group closed 2020 with the best result in its more than 50 years history.
“Even in times of worldwide shutdowns, globalisation has shown its resilience, fuelled by digitalisation and the power of global trade”, says John Pearson, CEO of DHL Express. “These trends have led to an ever growing number of consumers to shift their shopping activities online. The pandemic has accelerated this development like never before, with a sharp rise in businesses selling their goods in the global marketplace. E-commerce and global logistics thus provided the key to unlock local shutdowns, keep economies running and mitigate the impact of Covid-19 for many of our customers.”
Acceleration of e-commerce growth through Covid-19
It was not only B2C e-commerce that was growing due to ongoing digitalisation and changed shopping behaviour of consumers. In 2019, before the pandemic, global sales on B2B E-commerce sites and marketplaces had already increased by 18.2 per cent to reach US$ 12.2 trillion , outpacing the market size of the B2C sector. Through Covid-19 and the resulting acceleration of digitalisation, this global B2B E commerce volume is estimated to reach US$ 20.9 trillion by 2027 .
“We have been facing the pandemic for over one year now”, says Michiel Greeven, Executive Vice President Global Sales at DHL Express. “A year that showed how nearly a decade of digital evolution happened in just a few months’ time, with online shopping and cross-border shipping as the new normal. And this is true not only for B2C retailers, but also in terms of B2B E-commerce as companies started recognising that online selling platforms are crucial for their business success, today and in the future. As a result, there will also be an additional need for global Express shipping and DHL Express is well positioned to support all B2B companies on their journey.”