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The GroupInvestor Relations
London 18.April 2007

DHL Express launches new direct-to-consumer delivery model

DHL@Home 24- and 48-hour delivery service benefits retailers by reducing parcel return rates

DHL, the world's leading express and logistics company has launched DHL@Home, a range of new delivery services to meet growing demand for business-to-consumer deliveries. With DHL@Home, businesses can now send goods to be hand-delivered direct to private residential addresses anywhere in the UK. There are two services to choose from, a 48-hour service for standard deliveries or a 24-hour service for more urgent items.

The home delivery market is growing annually, due largely to a 30% increase in online sales in 2006 with a projected growth of 40% in 2007*. While this has led to higher sales for many retailers, it has also led to increased returns. Goods are frequently left undeliverable as many services will only deliver during office hours when customers are not at home. Recognising the need for a new business-to-consumer delivery model, DHL@Home will provide retailers with a more efficient and cost-effective service and consumers with a faster, more convenient delivery.

Couriers are self employed and work flexible hours to enable them to make deliveries any time between 0730 and 2100, Monday-Friday. DHL@Home couriers are tasked with making three delivery attempts and if the recipient is not at home during the first delivery couriers will leave a card with their personal mobile number so that customers can call them directly to arrange a re-delivery appointment.

During trials of the DHL@Home service in summer 2006, the success rate after three attempts ran at more than 99.95%, saving retailers huge costs in return and redelivery fees. However, consumers can also arrange collection from a different UK address, or alternatively have goods dropped off for collection at a DHL Service Centre if that is more convenient.

Each DHL@Home courier is equipped with advanced handheld wireless technology to help them coordinate with local DHL Service Centres. The handheld terminals enable the couriers to communicate in real-time with DHL Service Centres and to record exact time of delivery, meaning back office management is more efficient, parcels are easily traced and security is improved.

Tim Brown, Sales and Marketing Director of DHL Express said, "When consumers have purchased an item from a retailer they trust, they expect an efficient, courteous delivery. Unfortunately, current services often deliver when consumers are working or otherwise unavailable and goods end up getting sent back to the retailers. With DHL@Home, consumers have more control over their delivery, which will ultimately lead to happier consumers and increased sales for our customers."

"At Dixons we currently sell around 10% of all our products online and the internet is a long term strategic sales channel for us," said David Seeby, Stock & Distribution Controller UK ECommerce Operations, DSG International plc. "The concept of the lifestyle courier delivering at the time most convenient for our customer, ensures a high first time delivery rate which creates strong customer satisfaction and ultimately benefits our business. DHL has always supported and responded to our needs in this rapidly evolving market."

Other services within the DHL@Home range include DHL@Home Authorised Returns, where consumers can request a collection of unwanted goods; and DHL@Home Catalogue, designed for businesses who distribute catalogues to either residential of business addresses.

*IMRG, the leading industry body for global e-retailing

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