German ecommerce industry to benefit from even faster deliveries

With 25 percent of European ecommerce turnover, Germany has one of the largest ecommerce industries in Europe. And the €40 billion market is set to hit 100 billion euros in 2020. This predicted growth of course can only happen if the country keeps investing on logistics. Luckily, that happens. Germany’s leading logistics companies invest 1 billion dollars in cutting delivery times.

Consumers have more and more expectations of online merchants, especially when it comes to delivering their goods. Same-day delivery is potentially becoming the norm. But premium two-hour delivery options are no longer so farfetched, says Nadine Späth, who’s Manager Consumer Goods and Retail at Germany Trade & Invest (GTAI).

German package delivery companies invest millions

Huge logistics companies in Germany aren’t resting on their laurels, as Deutsche Post DHL, the country’s largest package delivery company, has invested 700 million euros in recent years in its systems and upgrading its sorting machines. And Hermes, Germany’s second-largest package delivery firm, announced investments worth 300 million euros by 2018 to modernize its local packages division. This includes plans for 35 new logistics centers and more focus on SMEs.

Germany number one in terms of logistics
Altogether, it may not come as a surprise that Germany is the absolute number one in the 2014 Logistics Performance Index from World Bank. (The country is followed by nearby countries The Netherlands, Belgium and The United Kingdom.) According to Späth, the new investments from Deutsche Post DHL and Hermes will help ensure that this remains so in the future.

“Germany’s geographical location, excellent infrastructure, high productivity rates, internationally competitive tax conditions, steady wage levels and highly educated workforce make the country an obvious choice for online retailers looking to establish a presence in Europe”, the press release on GTAI’s website tells us.