On-Demand Delivery services: What they are & how they work for e-commerce

It’s no secret that online customers love fast delivery. But they’re also looking for maximum convenience – choosing exactly when and where their goods are delivered. Welcome to the world of On-Demand Delivery. Here’s how this valuable service can boost your sales.

What is On-Demand Delivery?

Wondering what On-Demand Delivery is? It’s a service that allows an e-commerce customer to choose exactly when and where their order is delivered, meaning they can set their delivery preferences to suit their specific needs. For example, they may choose to have their package left with a neighbour if they know they aren’t going to be in.

As customer expectations rise, businesses must learn to keep pace. Designed with flexibility in mind, DHL Express’ On-Demand Delivery puts customer convenience at its centre. It offers options such as scheduled delivery, vacation hold, collection from a DHL Service Point, and even the ability to sign digitally or leave the package in a safe place.

Driven by modern technology like automation and data analytics, On-Demand Delivery meets the evolving needs of consumer behaviour today. It's available globally and ensures a consistent experience, making it especially convenient for residential deliveries.

What does the process of On-Demand Delivery look like?

So, how does On-Demand Delivery work? Typically, an e-commerce customer will make an order online and select all their delivery preferences. This is then picked up by the retailer’s courier partner to fulfil.

With DHL Express’ On-Demand Delivery, customers can choose from a range of options. They can have their package delivered to a parcel locker, neighbour, concierge, guard, or even an alternate address. For even more convenience, they can authorise delivery to a safe place without a signature or place a vacation hold to postpone delivery.

The customisation doesn’t stop there — customers can receive real-time notifications on their preferred channel, whether by email, SMS, push notifications via the DHL Express Mobile app, or WhatsApp. They can also pick which notifications they want to receive, such as delivery updates, exceptions, pickup confirmation, and out-for-delivery alerts.

Benefits of On-Demand Delivery for businesses

Creates a competitive service

Your competitors are always just a click away from your customers, but your delivery offering can give you an edge. In fact, three in five consumers prefer to buy from retailers that offer a range of delivery options1. They want speed, convenience, flexibility and transparency — all of which On-Demand Delivery covers.

Enhances customer trust

With On-Demand Delivery, customers can receive push notifications from the courier about their shipment’s status. This transparency will build their trust in your brand.

Reduces failed deliveries

Did you know that 8% of domestic first-time deliveries fail?2 This can become extremely expensive for retailers, who then must pay for re-delivery (not to mention storage costs in the meantime.) With On-Demand Delivery, customers can choose to have their goods left with a neighbour or delivered to a parcel locker, which will help you reduce your failed delivery rate.

Furthermore, delivering more goods on their first attempt means you will reduce the carbon emissions associated with your last-mile logistics — which is great news for your sustainability rating!

Leverages automation

Much of On-Demand Delivery is automated, which makes it highly flexible. As an example, DHL Express’ ODD service allows customers to divert their shipments to an alternate address than the one they originally nominated when checking out on a retailer’s website.

Enables wider audience reach

DHL Express’ On-Demand Delivery service is available for international shipments. This means SMEs shipping to cross-border markets can offer their customers maximum flexibility, which in turn reduces the failed delivery rate, saving the business money and stress.

Offers better tracking

With On-Demand Delivery, businesses can track their shipments, 24/7, in real-time. This helps them know its exact ETA, and inform the customer if it is delayed.

Data analytics

On-Demand Delivery collates valuable consumer data which businesses can use to understand their customers’ behaviour better. These insights help them predict demand patterns and ensure their inventory levels and fulfilment processes are prepared.

Cost savings

As so much of On-Demand Delivery is automated — using data insights to optimise every step of logistics — businesses will save money. For example, by being able to forecast demand surges, inventory levels will be more accurately managed, leading to lower warehouse storage costs.

Benefits of On-Demand Delivery for customers

Convenience, convenience, convenience

E-commerce customers can’t always be at home to receive their deliveries, and with On-Demand Delivery, they don’t have to. They are given control of where and when their orders arrive, which means a stress-free, seamless experience. Whether they need their package left with a neighbour, concierge, or guard, placed on vacation hold until they return, delivered to a safe place without a signature, or sent to an alternate address, On-Demand Delivery offers the convenience to suit their unique needs.

Full tracking

Customers love to track their deliveries — it gives them peace of mind and builds up the excitement for their arrival. With On-Demand Delivery, they can receive status notifications from the moment their shipment leaves the warehouse — including an estimated time of delivery, and even updates if the driver has been delayed.

Easy to manage

With the integration of mobile app technology, On-Demand Delivery customers can manage and track their shipments in real-time with the push of a button. Through the DHL Express Mobile app, they can adjust delivery preferences, receive notifications, and track every stage of the journey. It doesn’t get easier than that!

Empower your customers with DHL’s On-Demand Delivery options

With DHL’s On-Demand Delivery, you can offer your customers full delivery flexibility and convenience. From scheduling a delivery to a more convenient date to authorising a trusted neighbour or safe place for drop-off, this service is designed to fit their lifestyle. 

For businesses, On-Demand Delivery reduces failed delivery attempts, cuts re-delivery costs, and enhances customer satisfaction by creating a seamless, reliable experience. Your customers gain peace of mind, real-time tracking, and control over their delivery, helping to build loyalty and keep them coming back.

Ready to integrate On-Demand Delivery into your business? Sign up for a DHL Express Business Account today.