DHL e-commerce fulfillment provides you with the most efficient, flexible, sustainable, and innovative commerce shipment services. The company partners with you to improve your Omni-channel strategy, scale fast, and optimize execution, at the same time allowing you to have control over your business operations.
Basically, DHL e-commerce offers fulfillment services that include the provision of storage space for your inventory, order processing, warehousing, shipping, tracking shipments in real-time, managing and handling returned items, and updating inventory accordingly.
If you’re wondering where to get the strategically located distribution centers, storage, pick, pack, and dispatch centers, DHL has got you covered. You get access to multiple-channel order processing, management, and fulfillment.
Now, the question is: Is DHL e-commerce fulfillment worth your time, money, and effort? If this is the answer you seek, read this article to get more intel on what this company offers.
- LET’S CUT TO THE CHASE!
- NOW, LET’S DETAIL THINGS FOR YOU.
- WHAT’S THE CATCH WITH DHL E-COMMERCE FULFILLMENT?
- WHAT YOU NEED TO KNOW.
- WHAT ARE DHL E-COMMERCE FULFILLMENT’S COMPETITORS OFFERING?
- WHAT AFFECTS DHL E-COMMERCE FULFILLMENT’S PRICES?
- WHAT AFFECTS PRICES IN THE INDUSTRY OVERALL?
- HOW TO GET THE BEST DEAL WITH DHL E-COMMERCE FULFILLMENT?
- CAN YOU AFFORD DHL E-COMMERCE FULFILLMENT’S PRICES?
- FINALLY: SHOULD YOU BUY DHL E-COMMERCE FULFILLMENT OR NOT?
LET’S CUT TO THE CHASE!
BUY IT IF
- Your business operates internationally: With DHL e-commerce fulfillment, you have access to an extensive global network that can facilitate efficient cross-border shipping, reducing delivery times and improving customer satisfaction.
- You desire multi–channel order processing: The company offers you the opportunity to manage and fulfill customers’ orders from multiple sales channels at the same time.
- You seek a wide range of delivery options: With DHL, you have access to a variety of shipping options such as express delivery, standard delivery, and freight shipping. You can also access your business needs and choose the option that aligns most with your budgets and requirements.
- You want to save time and cost: When you outsource your business fulfillment to DHL, you get to channel your time and money associated with managing your warehouses, hiring staff, and coordinating shipping logistics. Besides, records from reviews hold that DHL has a fast delivery time for its fulfillment solutions.
- You desire to leverage technology for your business: With DHL, you have access to technology solutions for inventory management, order processing, and shipment tracking, where you get to integrate seamlessly with e-commerce platforms for easy business processes.
- You want expert help in terms of fulfillment: Except you have experience in e-commerce fulfillment, it is a wise choice to leverage DHL’s expertise in logistics and shipping so you can have more efficient and reliable fulfillment processes.
- You deal with bulky or heavy goods: While some fulfillment solutions avoid heavy-weighted items, DHL has a provision for the delivery and installation of bulky and heavy goods.
- You want to track the process: DHL allows you to have comprehensive tracking of the shipment process where you—and your customers—stay informed concerning the status of their orders. You save yourself the pain it takes to respond to too many customer inquiries, especially on simple matters, and at the same time, improving the overall customer experience.
- You seek a reliable fulfillment service: DHL’s reputation for reliability and on-time delivery can save you a lot of loss in business while enhancing the overall customer experience, and fostering trust among your customer base.
>>> MORE : UPS Ecommerce Fulfillment Review
DON’T BUY IT IF
- You need a warehouse close to your business: If having your business close to the fulfillment center is crucial to your business operations, and especially for quick decision-making or regular oversight, you might consider outsourcing to a third party to meet your expectations.
- You seek exclusive storage space: Because DHL offers a shared fulfillment environment, your products share warehouse space with other businesses. If you want exclusive control over the storage space, an in-house solution may be more suitable for you.
- You want no additional fees: DHL charges additional fees when you request additional services such as insurance, customs clearance, and delivery to remote areas. While the fees may seem little initially, they add up to increase the total cost.
- You need total control over the fulfillment process: With DHL e-commerce fulfillment, you have less control. When you outsource your fulfillment to DHL, you’re giving up some control over the entire process, which may not be suitable for your business, especially if your business prefers a hands-on approach.
- You desire a cheaper fulfillment service: The truth is that DHL’s shipping rates are quite on the high side compared to other shipping carriers, especially if you’re shipping items across borders. If your ecommerce business is price-sensitive, or you operate on a tight budget, you may consider cheaper alternatives.
THE BOTTOM LINE
🌐 DHL is one of the leading ecommerce fulfillment solutions available with a wide collection of shipping options. Depending on what your business requires, and your budget, choose the option that’s most suitable for you, cutting costs and increasing profit margin—after all, that’s the goal of being in business.
NOW, LET’S DETAIL THINGS FOR YOU.
When it comes to pricing, DHL doesn’t make it public on its website. You have to apply to get a quote. Well, you may be tempted to think they lack transparency in pricing, but that may not be the case for some reasons.
First off, DHL believes in fair pricing for everyone. What this means is that you only pay for what you use, and pay less as you scale.
Unlike other fulfillment companies that offer tied plans where you subscribe to get access to features you don’t need, DHL gives you what you NEED, and believes that your business can scale up, so, you can change your plans if the need arises.
Also, you don’t get overcharged for services you don’t use. For instance, if you’re using either inbound, outbound, or delivery solutions, you pay for the exact services you use. That way, you save yourself some extra costs.
Keep in mind, too, that DHL does not charge you for set-up or integration fees, just the way it doesn’t charge you for subscriptions. So, your service cost is dependent on you—you choose how much you want to pay DHL.
DHL provides you with a pricing calculator where you get to determine how much you’re spending to receive their services. All you have to do is tell DHL the basic facts about your business such as annual orders, warehouse location, and product category (this is for the “Quick facts” feature provided on their website).
But for the advanced facts, you provide additional details about your business such as the average number of order lines, average number of pieces per order line, number of SKUs, and average weight per piece (kg). A customer representative is on standby to provide answers to your questions.
Another feature offered by DHL e-commerce fulfillment is the multi-channel order processing solution. As earlier said in this article, multi-channel order processing allows you to manage and fulfill customers’ orders from a variety of sales channels simultaneously.
You can receive orders through your website, mobile app, social media platforms, marketplace listings (like Amazon or eBay), and any other channels where customers can make purchases.
With the multi-channel order processing feature, you can streamline business operations, reduce errors, and enhance customer satisfaction.
There’s something else…
DHL offers three service levels:
Expedited Max: Ensuring delivery within 2/3 days with a definite timeframe.
Expedited: Offering a 2-5-day service for timely shipments.
Ground: Providing a 3-8-day service for efficient and cost-effective deliveries.
It is important to consider reviews from others who have used DHL. For instance, TrustPilot has a 1.2 star out of 5 rating for its services. Some of the customer complaints include loss of package and late delivery. While these reviews may be valid, understand that individual needs and preferences differ. So, check your needs and budget to know if you’re okay with DHL’s services.
A word of caution: If you’re considering doing e-commerce via DHL, familiarize yourself with the DHL Country Import Guidelines Index, where you get to see the full list of prohibited items. Some of them include animals of any kind, bullion, firearms, human remains, and pornography of any kind, among others.
WHAT’S THE CATCH WITH DHL E-COMMERCE FULFILLMENT?
While DHL is a reputable e-commerce fulfillment company, they do not offer an open pricing model. To know how much you’re paying for a particular business service, you must apply to get a quote.
From this research, there are no dubious activities concerning the pricing. You pay according to what you use.
However, just like any other business, some customers have displeasing comments/ reviews concerning DHL’s provision. As earlier mentioned, you can find reviews expressing customer dissatisfaction on TrustPilot. For instance, a customer has this to say, “DHL lost my package. They claimed it left their warehouse. However, there is no tracking to back that up. They claimed the package is in the hands of USPS but USPS has no information on the package in their system” (Source: DHL Trustpilot Review).
Another dissatisfying review by a customer on February 20, 2024, on ConsumerAffairs states, “Was supposed to receive a package on 17/2/2024 through DHL. Instead of delivering, they passed it off to USPS and it sat at their facility for 6 days before they arranged to pick it up. Horrible company to choose if you want anything on time.” (Source: ConsumerAffairs DHL Review).
Mind you, these are individual opinions and can vary depending on individual needs and personality traits. Check the available information make assessments of basic business needs and see if they align with DHL’s offerings.
Remember, the goal is to cut costs, satisfy customers, and make a profit—a massive one at that!
WHAT YOU NEED TO KNOW.
If you recall as earlier stated in this article, there are no price quotes on DHL’s website for specific plans. The reason is that the company believes individual needs and preferences differ. So, they allow you to pay according to the services you need.
To get accurate information on the cost of fulfillment for your specific requirements, you should directly contact their customer support and discuss your business needs with them. They can provide you with a tailored quote based on the services and volume you anticipate.
Something else you should know is that several factors come together to form your fulfillment costs. The fulfillment cost may include order processing, warehousing, picking and packing, shipping, delivery, and potentially additional services such as returns management.
Speaking of delivery, DHL offers parcels and envelopes delivery within the Netherlands starting at just $4 and $3.42 (based on today’s rate), respectively. Check out the company’s customer support page at DHL Ecommerce Consumer Support for more information on parcel delivery.
>>> PRO TIPS : Ecommerce Store Checkout: Top Hacks for Higher Conversion
WHAT ARE DHL ECOMMERCE FULFILLMENT’S COMPETITORS OFFERING?
DHL Ecommerce Fulfillment vs. FedEx Fulfillment
Similar to DHL e-commerce fulfillment, FedEx fulfillment offers end-to-end e-commerce shipping solutions. If your business is looking for assistance in warehousing, order processing, and shipping to enhance your business’s supply chain and logistics operations, FedEx fulfillment got you covered.
Both companies don’t offer direct rates on their websites. And the cost of fulfillment is dependent on the weight of the services you need.
For FedEx fulfillment, when you use its feature called FedEx Express, you have access to the FedEx One Rate free packaging services for shipping. That way, you save yourself some extra cost.
Also, you can get shipping costs ahead of time, rather than assessing a package, or guessing how much it weighs and wrongly costing the services.
So, view your options and know which one is best for you.
DHL E-commerce Fulfillment vs. FBA
Amazon FBA—being a major competitor of DHL e-commerce fulfillment—allows you to store your products in any of their fulfillment centers. Once you place an order, Amazon takes care of packaging, shipping, and handling customer service inquiries for those products. All you need to do is send your inventory to Amazon’s fulfillment centers and they handle the rest.
Regarding pricing… as an FBA seller, you’re relieved from the responsibility of covering shipping, handling, and packaging expenses for sending out your goods. To offset these operational costs, you incur Amazon seller fees, calculated based on the dimensions and weight of your items.
To get in-depth details about the prices for Amazon FBA, visit their price page at Amazon FBA Fees.
DHL Ecommerce Fulfillment vs. ShipBob
ShipBob differs from DHL in the sense that it is a standalone third-party (3PL) logistics company with a focus on e-commerce fulfillment, while DHL e-commerce fulfillment is part of the broader DHL network.
If you’re to think critically about who gives the greatest concentration and attention to the fulfillment needs, wouldn’t you go for ShipBob? Probably, yes.
You can have access to offerings such as warehousing, order fulfillment, and shipping solutions for your e-commerce business.
However, the cost depends on the services you need. ShipBob charges a $3 processing fee per return order for returns management.
Shipping prices vary depending on factors such as weight, dimensions, destination, service, and more. See what works for you and go with it.
DHL E-commerce Fulfillment vs. UPS
UPS—just like DHL—is one of the biggest fulfillment companies globally. In other words, your e-commerce business has the opportunity to ship to more destinations.
Reports from customers on review sites like Trustpilot and ConsumerAffairs commended UPS for its fast shipping services. They believe UPS is arguably the fastest shipping company at the moment. But that’s arguable, though.
There are records of damaged packages from past buyers on the negatives of UPS. This may not be a common occurrence, but you should still be aware of it.
Regarding pricing, UPS differs slightly—it is quite on the high side compared to DHL. If you’re working on a budget and your business needs tailored shipping services, you may consider choosing DHL instead as they are more affordable.
WHAT AFFECTS DHL ECOMMERCE FULFILLMENT’S PRICES?
While there are no specific pricing plans on DHL’s fulfillment solutions, you must put certain factors into consideration when planning your budget as these factors affect the overall pricing—directly or indirectly.
Package Weight and Dimension
Every item has its unique weight as well as price. The weight and size of the packages play a significant role in determining the fulfillment costs. Keep in mind that heavier and bulkier items normally attract higher fees as they require more resources for handling, storage, and shipping.
Shipping Location
Recall that DHL e-commerce fulfillment operates globally, and shipping costs can vary based on the destination. So, the cost of such fulfillment is determined by the distance and logistics complexities. You need to factor these in as you plan your next move.
Customization and Packaging
If you’re requesting special packaging, understand that such service comes with additional fees. You must consider how these unique packaging needs impact the overall fulfillment costs. For a cheaper cost of shipment, you must cut down on some features that come with the fulfillment solution.
Order Volume
If your order volume is high, you may enjoy discounts or special pricing arrangements. Your order volume also affects shipping costs, especially when negotiating contracts with shipping carriers. Again, if your order volume is high, you enjoy better shipping rates, which help you save costs in the long run.
Fulfillment Center Capacity
Depending on your shipping location, if the fulfillment center has limited capacity, and your business has fluctuating order volumes, you may consider flexible arrangements that accommodate peak periods without overcommitting during slower times.
Data Analysis and Insights
If you want to monitor your order volume and get valuable data for business analysis, you might as well prepare to pay additional costs. However, understanding patterns and trends in order volume can help your business make informed decisions about inventory management, marketing strategies, and overall business growth.
WHAT AFFECTS PRICES IN THE INDUSTRY OVERALL?
Understanding the factors that affect prices in the e-commerce fulfillment industry helps you to get prepared for your business operations. With proper knowledge of these factors, you’re able to set competitive prices while at the same time staying at the proper margin for profit.
Cost of Raw Material
Fluctuations in the prices of raw materials can directly affect production costs. If what you sell in your online store is on, for instance, animal skin, for production, there’s every possibility that the finished product’s price would be affected if there are changes in raw material prices.
Seasonality
Seasonal variations can influence prices, especially in industries where demand fluctuates based on specific times of the year. For instance, during Valentine’s season, you sure know that the demand for flowers would increase, and so does the price. Same with the rainy season when there’s a high demand for umbrellas. You may adjust prices to account for increased demand during peak seasons.
High Rate of Competition
Where there’s intense competition within your chosen industry, it can lead to price wars, with companies lowering prices to gain market share. You must understand how the market works, how and when your competitors are at price wars, and play your card appropriately so you don’t overpay.
Supply and Demand
Note that the fundamental economic principle of supply and demand is a primary driver of pricing. When demand outstrips supply, prices tend to rise, and when supply exceeds demand, prices tend to fall.
Economic Conditions
The condition of a given economy such as inflation, interest rates, and GDP growth, can affect pricing. When the economy experiences downturns, there may be a decrease in demand, prompting you to lower prices to stimulate sales.
>>> GET SMARTER : FedEx Fulfillment vs DHL eCommerce
HOW TO GET THE BEST DEAL WITH DHL ECOMMERCE FULFILLMENT?
Getting the best deal with DHL e-commerce fulfillment involves a combination of strategic planning, effective communication, and leveraging the available resources.
Understand What Your Business Needs
Begin by understanding your business needs and clearly define your business requirements covering order volume, shipping destinations, and packaging needs. That way, you can negotiate a tailored fulfillment solution.
Negotiate Volume Discounts
If your business processes a large volume of orders, don’t relax and lose out on the opportunity to leverage volume discounts. DHL offers tiered pricing based on order volume. So do well to speak with DHL’s representative and negotiate terms that align with your expected growth and order frequency.
Evaluate Your Product Characteristics
If you recall earlier in this article, you learned that the product weight, dimensions, and fragility are key factors when checking the cost of shipment. Good…
So, make sure you evaluate your product based on these factors so you can have a picture of the cost. That way, you can determine accurate pricing and storage requirements.
Review DHL’s SLAs
To get the best deals with DHL e-commerce fulfillment, understand and review Service Level Agreements (SLAs), and any penalties associated with non-compliance. That way, you ensure transparency and accountability in the fulfillment process.
Make Use of Technology Integration
To get the best deal with DHL e-commerce fulfillment, integrate your online store with their systems for seamless order processing. All thanks to DHL’s technology-driven system, you can automate the fulfillment process, reduce errors, improve efficiency, and potentially lead to cost savings.
Consider Fulfillment Center Locations
To get the best deals with DHL e-commerce fulfillment, evaluate the locations and choose the ones strategically located to reduce shipping costs and transit times, especially if you have a geographically diverse customer base.
Stay Informed About Industry Changes
To get the best deals from DHL e-commerce fulfillment, keep abreast of industry trends, technology advancements, and changes in logistics. That way, you adapt your strategy, take advantage of new services, or negotiate better terms based on industry developments.
CAN YOU AFFORD DHL ECOMMERCE FULFILLMENT’S PRICES?
A very crucial question you MUST answer as you decide on whether or not you should buy DHL e-commerce fulfillment.
Affording DHL E-commerce fulfillment prices are dependent on your business needs, budget, and income capability.
For your business needs, decide on which audience you’re serving, and the kind of products you’re selling to them.
Then, do some math to know how much it costs to set up a fulfillment process; and the aggregate fees that are part of the process.
After which, evaluate your income stream—is it consistent? Can it take care of the initial costs until your e-commerce business starts bringing profit? Or would you simply seek a business loan?
Find answers to some of these questions to see if you can afford DHL e-commerce fulfillment prices.
Just to remind you…recall that the article mentioned that there is no rigid pricing system for DHL e-commerce fulfillment. Before you get the actual cost, evaluate your business needs and budget, and then speak with DHL’s customer support to get a quote.
FINALLY: SHOULD YOU BUY DHL ECOMMERCE FULFILLMENT OR NOT?
Congrats…you’ve come to the place of decision-making.
Should you buy DHL e-commerce fulfillment or not?
It is easier to say “yes” or “no,” but the decision goes far beyond some affirmative statements.
The decision to choose DHL e-commerce fulfillment or an alternative service depends on you doing a thorough evaluation of your specific business requirements and priorities.
You must first check yourself to know if you truly SHOULD BUY IT OR NOT.
One of the ways to come to a purchasing decision is to know the exact cost you are paying. To get that, request a quote from DHL’s customer support.
Generally speaking, it’s often beneficial to compare multiple providers, negotiate terms, and potentially conduct a trial period before committing to a long-term partnership.
