#SmallBusinessAdvice

What is On-Demand Delivery?

Anna Thompson
Anna Thompson
Discover the content team
4 min read
DHL delivery woman handing over a parcel to a man

Online shoppers don’t just expect fast delivery, they also want flexibility and control over when and where their orders arrive. This is where on-demand delivery comes in. By offering speed and convenience, this service helps businesses meet rising customer expectations and drive more sales.

What is On-Demand Delivery?

On-Demand Delivery allows an e-commerce customer to choose exactly when and where their order is delivered. They can set their delivery preferences according to their specific needs. For example, they may choose to have their package left with a neighbor if they know they aren’t going to be in.

On-demand delivery is a highly flexible service designed around customer convenience. Powered by modern technologies such as automation and data analytics, it can quickly adapt to changing expectations and support businesses in meeting growing demand.

What Does the On-Demand Delivery Process Look Like?

The On-Demand Delivery process starts when a customer places an order online and selects their preferred delivery options. The request is then automatically processed and assigned to a courier partner for fast fulfillment.

Customers can choose from flexible delivery options, such as home delivery, parcel lockers, delivery to a neighbor, or an alternative address—ensuring maximum convenience and control.

A key advantage of on-demand delivery is real-time tracking. Customers receive instant notifications and updates on their shipment status, allowing them to monitor their delivery every step of the way and enjoy a smoother delivery experience.

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

On-Demand Delivery improves transparency by keeping customers informed at every stage of the shipping process. With real-time updates and push notifications from the courier, customers can easily track their orders and know exactly when to expect delivery. This level of visibility builds trust, increases confidence in your brand, and enhances the overall customer experience.

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 neighbor 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

On-Demand Delivery relies heavily on automation, making the entire process faster, more flexible, and efficient. For example, advanced delivery services allow customers to easily change their delivery preferences, such as redirecting a shipment to a different address, even after placing an order. This level of automation helps businesses streamline operations while offering a more convenient and adaptable delivery experience for customers.

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

On-Demand Delivery provides real-time tracking, allowing businesses to monitor shipments 24/7. This visibility helps estimate accurate delivery times (ETA) and quickly identify any delays. As a result, businesses can keep customers informed and deliver a more reliable and transparent shipping experience.

Data analytics

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

Reduces operational costs

Because on-demand delivery is largely powered by automation and data-driven insights, it helps businesses optimize logistics and reduce overall costs. For example, improved demand forecasting allows for better inventory management, minimizing excess stock and lowering warehouse storage expenses.

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 for them. 

Full tracking

Customers value the ability to track their deliveries, it provides reassurance and builds anticipation for arrival. With On-Demand Delivery, they receive real-time updates from dispatch to doorstep, including estimated delivery times and notifications about any delays.

Easy to manage

Thanks to mobile app integration, On-Demand Delivery is simple and convenient to manage. Customers can track and adjust their shipments in real time with just a few taps, making the entire delivery experience seamless and user-friendly.

How DHL can help

With DHL, you can offer your customers full delivery flexibility and convenience. In addition to its Express services, it also has the following On-Demand Delivery services:

  1. DHL Express Service Point: your customer can collect their parcel(s) at any DHL Express Service point located in the receiving country.
  2. Signature Release: the goods can be delivered without the need for the customer’s signature.
  3. Schedule A New Delivery Date: your customer can change their delivery date and time up to seven days from the original.
  4. Leave Package With A Neighbor: your customer can nominate a trusted neighbor to receive the delivery in the event they are not at home.
  5. Deliver To Another Address: your customer can request to change the delivery address at a later point.
  6. 30 Day Vacation Hold: customers on vacation can ask the courier to hold their delivery for 30 days, and put in a request for a new date and time.

Whichever option the customer chooses, they will also receive notifications of their shipment’s status, via email or text message. All of which means the best experience with your business – crucial if you want them to return.   

Ready to integrate On-Demand Delivery into your business? Apply for a DHL Express Business Account, here.