According to a survey conducted by DHL Express US, more than 53% of its U.S.-based small and medium-sized e-commerce customers view international growth as the most significant opportunity for their businesses. The most preferred target markets include the EU, U.K., Mexico, and Canada, with China and Southeast Asia each garnering 14% interest. This trend indicates a growing comfort among U.S. retailers in shipping products overseas. DHL Express US CEO, Greg Hewitt, sees this as a positive development for the delivery company, which has strategically focused on cross-border deliveries after failing to establish a domestic express delivery market in the U.S. in the late 1990s.
Evolving Business Strategies Amid the E-Commerce Boom
The e-commerce boom has aligned well with DHL’s business restructuring. The company is well-positioned to assist global sellers in reaching American consumers and helping American businesses tap into new markets. This situation is expected to improve further, as indicated by the survey results. Hewitt explains that when DHL started focusing on international shipments, it constituted less than 10% of the overall market, primarily involving Canada, the U.K., and Australia. However, the last decade, particularly the pandemic period, has seen businesses adopting a different mindset.
Improved Customer Experience Driving International Expansion
The shift towards international expansion is largely due to online vendors adopting a more sophisticated approach. Unlike in the past, shoppers from other countries are now offered conversions into their own currency, language translation, and accurate landed cost. This transparency has improved the customer experience and has led to U.S. businesses recognizing opportunities beyond the U.K. and Canada.
Potential Challenges and the Way Forward
Despite the positive outlook, potential challenges loom, such as the possibility of increased tariffs on internationally sourced goods and a lowering of the “de minimis” value at which small shipments incur duties. Hewitt points out that the U.S. has one of the highest de minimis levels globally, and a significant shift in duties policy could strain authorities. However, Hewitt remains optimistic, stating that carriers are more adaptable than most importers and exporters. He emphasizes the need for adequate time to implement changes effectively, citing the example of Brexit, where businesses had ample time to plan and adapt.
