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Optimizing Cross-Border E-Commerce with Blockchain

Sector: Tertiary sector · Industry: Warehousing and logistics services · Organisation: Deutsche Post DHL Group · Maturity level: Pilot

Deutsche Post DHL Group is cooperating with online retailers in pilot projects to optimize cross-border e-commerce logistics using blockchain technology. The blockchain enables secure data exchange, real-time transparency, and process automation through smart contracts. This makes supply chains more efficient and counterfeit-proof.

Documentation status

Description

In cross-border e-commerce, goods often have to go through complex customs and documentation processes that are time-consuming, error-prone and costly. Deutsche Post DHL Group is testing the use of blockchain technology together with online retailers to digitise and automate these processes. Through the shared, tamper-proof data foundation, all parties – from retailers and logistics providers to customs authorities – can access current and reliable information at any time. Smart Contracts automatically trigger process steps as soon as defined conditions are met, significantly reducing waiting times and manual interventions.

Cross-border e-commerce is growing rapidly but brings significant logistical and bureaucratic challenges: customs declarations, certificates of origin and shipping documents must be exchanged in different formats and systems among many parties. Deutsche Post DHL Group is addressing this challenge with pilot projects using blockchain technology as a shared, decentralised data foundation. All transactions and documents are immutably stored on the blockchain, preventing forgery and manipulation while providing full transparency for all parties involved. Processes such as customs clearance or payment triggers can be automatically initiated via Smart Contracts as shipments pass certain control points. DHL is also involved through its subsidiary Gerlach Customs in the Open Customs Blockchain, a project coordinated by the Fraunhofer Institute for Material Flow and Logistics and supported by the Open Logistics Foundation. Additionally, tests have been conducted in Dubai to avoid unnecessary customs duties in e-commerce. DHL's total budget for blockchain projects amounts to 100 million euros by 2025, and the company is actively seeking partner customs organisations for broader implementation.

Perspectives

B2B — organisations perspective

For companies in the e-commerce and logistics sectors, blockchain-based optimisation of cross-border processes offers significant cost-saving potential through faster customs clearance and reduced documentation errors. The shared, trustworthy data foundation facilitates collaboration with international partners, customs authorities and service providers, creating the basis for scalable, automated trade processes.

B2C — consumers perspective

End customers benefit indirectly from shorter delivery times and more transparent tracking of their cross-border orders. By automating customs processes, delays and unexpected additional costs for consumers can be reduced.

Employees perspective

Employees in customs clearance and logistics coordination benefit from less manual effort in document processing, as Smart Contracts automate routine tasks. At the same time, new requirements arise for understanding digital processes and blockchain systems, necessitating continuous training.

Benefits

General

B2B — organisations

B2C — consumers

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The use case is based on blockchain technology, which, due to its decentralized and tamper-proof data storage, is particularly suitable for establishing trust between multiple independent actors in international supply chains. Smart contracts automate processes such as customs clearance and payment triggers once defined conditions are met. The immutable recording of all transactions creates a shared, trustworthy data basis for logisticians, customs authorities, and trading partners.

Implementation examples

DHL blockchain pilot projects in cross-border e-commerce

Cross-border e-commerce suffers from complex, error-prone, and costly customs and documentation processes that extend delivery times and cause unnecessary costs. DHL aims to eliminate these inefficiencies through blockchain and make its services more attractive for international retailers.

Deutsche Post DHL Group is conducting test series with online retailers to optimise cross-border e-commerce logistics processes using blockchain. Additionally, DHL participates via its subsidiary Gerlach Customs in the Open Customs Blockchain and has conducted tests in Dubai to avoid unnecessary customs duties.

Deutsche Post DHL Group is investing extensively in blockchain technology to make international goods traffic more efficient, transparent, and secure. In the area of cross-border e-commerce, pilot projects with online retailers are underway, using blockchain for secure data exchange, real-time transparency, and process automation via smart contracts. The subsidiary Gerlach Customs participates in the Open Customs Blockchain, a project coordinated by the Fraunhofer Institute for Material Flow and Logistics with support from the Open Logistics Foundation, aimed at digitising and automating customs processes. Additionally, DHL has conducted tests in Dubai to avoid unnecessary customs fees in e-commerce through blockchain-based goods value documentation. DHL has allocated a budget of 100 million euros for all blockchain initiatives until 2025 and is actively seeking partner customs organisations for broader implementation of the technology in customs and logistics processes.

The solution addresses the lack of transparency and traceability in international supply chains, error-prone manual document processing, and the occurrence of unnecessary customs fees due to insufficient goods value documentation.

Tags

Supply chain, Smart Contract, Customs clearance, E-commerce, Transparency, Cross-border trade, Automation

Sources

  1. Blockchain in der Logistik: Sicherheit und Transparenz für die Lieferkette
  2. Deutsche Post will mit Blockchain Welthandel vereinfachen
  3. Blockchain: Wie Deutschlands Post den Welthandel vereinfacht