DHL Announces Investment Plan in U.S. E-Commerce Services
OREANDA-NEWS. DHL eCommerce is looking to profit from these developments and to increase its e-commerce footprint in the United States. In line with the Strategy 2020, the Group has made and will continue to make significant investments. After the first order fulfillment center opened in Columbus, Ohio, last year and followed by a facility in Los Angeles, DHL eCommerce will establish further regional centers of this kind in New Jersey and other locations in 2017. Additionally, DHL Express celebrates the opening of a new, $1.3 million service center facility in Chicago to meet heavy demand from e-commerce customers. And just one year ago, also DHL Global Forwarding opened up a $35 million distribution center in Chicago. All of these infrastructural engagements will provide merchants with the opportunity to place inventory closer to consumers in order to speed-up delivery.
Today's global B2C cross-border e-commerce market comprises approximately $400 billion and is expected to expand rapidly. Particularly emerging markets are going to fuel the estimated annual growth rate of 28 percent, followed by Western Europe and North America. Thanks to China's growing middle class, which will reach 630 million people by 2022, most of the purchasing power will come from Asia-Pacific and equal about 48 percent of the total volume. Research shows that consumers increasingly buy products online that are either unavailable or too expensive in their home country. The biggest share of these cross-border purchases will revert back to U.S. e-commerce businesses, among other reasons because consumers covet products tagged with the "Made in the U.S." label. DHL is looking to benefit from these developments and increase its e-commerce footprint in the United States.
The planned expenditure of $137 million until the end of 2020 will be used for the further expansion of fulfillment capabilities by adding eight distribution centers and enhancing two existing facilities in Los Angeles and Columbus, Ohio. The new investment will also expand day definite deliveries and enhancements to support domestic and international services. "We provide the most comprehensive e-commerce platform for international trading ventures, thanks to our different divisions' expertise along the entire supply chain, whether it is warehousing or transportation. For consumers shopping abroad, and also for businesses, it is of utmost importance that international deliveries are reliable, safe and convenient. We provide that with our network every day in every way," Brewer continues.