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DHL acquires US e-commerce logistics business IDS Fulfillment

Purchase provides access to more small and medium-size customers

Eric Kulisch
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IDS Fulfillment is based in Plainfield, Indiana, and has other warehouses across the country. (Photo: DHL Supply Chain)
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Key Takeaways:

  • DHL Supply Chain acquired IDS Fulfillment, expanding its e-commerce services for small and medium-sized businesses in the US.
  • The acquisition adds over 1.3 million square feet of warehouse space and a diverse customer portfolio to DHL's network.
  • This is DHL's second e-commerce acquisition in 2025, reflecting a strategic focus on growth in this sector.
  • The acquisition is seen as timely due to increasing demand for US-based fulfillment capabilities from multinational companies and recent tariff changes impacting e-commerce imports.
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The supply chain unit of German parcel and logistics giant DHL has acquired IDS Fulfillment to bolster its e-commerce service offerings to small and midsize customers in the United States, the company announced on Tuesday.

The deal brings more than 1.3 million square feet of public warehouse and distribution space under the DHL umbrella, including facilities in Indianapolis, Salt Lake City, Atlanta and Plainfield, Indiana, where IDS is headquartered. DHL Supply Chain also gains a diverse customer portfolio, including small-and-medium enterprises, and fulfillment expertise.

DHL said it will retain IDS’ local managers to ensure service continuity for customers. Terms of the sale were not disclosed. 

“E-Commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” said Patrick Kelleher, CEO of DHL Supply Chain North America, in a news release. “The acquisition of IDS Fulfillment not only expands our operational footprint but also ensures small and midsized companies have access to our state-of-the-art logistics solutions designed for their specific requirements.”

IDS represents the second e-commerce acquisition for DHL Supply Chain this year. In January, it acquired North Carolina-based Inmar Supply Chain Solutions, the largest reverse logistics provider for e-commerce retailers in North America. 

This marks the second e-commerce acquisition for DHL Supply Chain in 2025, having acquired Inmar’s reverse logistics business in January, making it the largest returns processing provider in North America.

“With global e-commerce set to grow at a compound annual growth rate of 8% per annum by 2029, DHL is targeting investments that further expand our capabilities to meet the needs of this growing segment and make our network and solutions easily accessible to businesses of all sizes. IDS Fulfillment complements our existing DHL fulfillment network, enhancing our ability to offer seamless global eCommerce solutions with local expertise and reach,” said Oscar de Bok, Global CEO for DHL Supply Chain. 

The move is especially timely, he added, as more multinational companies are looking to establish fulfillment capabilities in North America. 

The U.S. government on Friday canceled the de minimis provision for low-value shipments entering the country from China and Hong Kong, forcing e-commerce sellers to pay 145% tariffs on individual orders that previously were allowed to enter the country duty-free. Chinese marketplaces like Temu, Shein and Alibaba, as well as other retailers, are setting up distribution operations in the U.S. with inventory sourced domestically or shipped in bulk by ocean to mitigate the impact of duties and other import fees.

DHL executives, during a presentation last week of first-quarter results, reiterated the importance of e-commerce logistics as a key growth area. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com