England, chasing a modest 134-run target, were bowled out for 88 in 17.4 overs in their last group match at Zahur Ahmed Chowdhury stadium. Pacemen Logan van Beek and Mudassar Bukhari took three wickets apiece.
The Netherlands, sent into bat, had made 133-5 in their 20 overs, with Wesley Barresi scoring 48 and Stephan Myburgh 39.
Stuart Broad was the pick of England bowlers with 3-24 in his four overs.
Both teams had already lost out on a place for the semi-finals. England lost three of their four matches, while the Netherlands also lost three.