Last-mile eCommerce Delivery Challenges and Solutions
You might have been living under a rock if you are still to come to terms with last mile eCommerce delivery. In the last five years, the eCommerce and retail sector has seen a major shift with the focus moving towards an omnichannel strategy. To keep up with customer demands, businesses are digitizing and automating their logistics processes. The use of last mile delivery software market size is expected to reach USD 11.96 Billion by 2028.
Last mile delivery software offers businesses high-value features that include- route planning and optimization, digital/electronic proof of delivery, real-time tracking, customer and delivery team collaboration, and more.
What is the role of last mile delivery?
- – The last mile delivery is the final stage of supply chain distribution that deals with getting the goods delivered to the customer from the warehouse/ store.
- – Businesses have started to invest in advanced delivery solutions to meet customer demands.
- – The last mile sector can benefit from flexible delivery dates, on-time delivery, real-time transparency, contactless deliveries, and cross-functional intelligence to improve delivery hurdles.
- – Some even have started to use electric/ autonomous vehicles and drones to get the goods delivered at the earliest possible.
Interesting stats on last-mile eCommerce
- – Close to 70% of millennial shoppers would want their eCommerce sites to offer 1-hour delivery options.
- – About 30% of customers change their delivery date, time, and address once placing their order.
- – More than 50% of customers would like to have a change date and address option on the eCommerce site.
- – Close to 30% of customers in the US cancel their orders on not having a same-day delivery option.
- – Over 90% of shoppers keep tracking their orders and want the deliveries to be completed as per the promised time.
How does last mile eCommerce deliver work?
Businesses cater to customer needs by offering multiple delivery options, some of which include-
- – 15-30 minute delivery
- – Same day delivery
- – Next day delivery
- – Selection of a suitable delivery date
Businesses that are able to deliver as per customer requirements will help improve customer experience and brand identity. Those who have managed to handle the delivery pressure have ensured to grab a greater market share. Companies like UPS, FedEx, Amazon, and more are the leading players for smooth last-mile eCommerce delivery.
Key delivery challenges for last-mile eCommerce:
Real-time order visibility: The top challenge faced by last mile eCommerce is real-time visibility on orders. Since there is no visibility on operations, the operations teams are in a spot when needing to find reasons behind delayed deliveries, fuel consumption, route diversions, etc.
Driver assignment for delivery: Finding the right driver/ delivery associate to get orders delivered is crucial in last mile delivery. Assignments should be automated and made as per driver skill sets, service area, availability, etc.
3PL vs Own Fleet: When your business is in upward growth, one major headache for businesses is whether to use their own fleet or use an external fleet (3PL carriers). Some even use a hybrid model to assist with last mile order volume.
Enhancing customer experience: To stay ahead of the competition, having the best delivery customer experience for the last mile is the key. Since the need for faster and on-time delivery has become extremely crucial, businesses are seeking the best delivery software to handle their deliveries.
Reducing delivery cost: The last mile delivery accounts for about 53% of delivery cost. Hence, finding the best solution that can reduce fuel costs, routing times (to avoid delays) and more will be crucial to handle delivery costs.
Avoiding package damage: Having the package damaged when getting the order delivered is the biggest eCommerce delivery nightmare! Not only will this result in additional costs but also affect customer satisfaction.
Handling returns: Many companies offer returns to improve customer satisfaction. However, order returns result in putting in additional revenue for pick-up and is a modern-day challenge for last mile eCommerce delivery.
Solutions to combat last mile eCommerce delivery challenges:
Use advanced technology: The use of GPS can be used to locate the fleet and with a driver app constant communication can be made to enhance the delivery experience. The use of robots, and autonomous/ electric vehicles can all play an important role in reducing delivery costs.
Invest in last mile delivery software: Cloud-based Saas delivery platform use is on the rise for last mile eCommerce delivery. They will help resolve visibility issues, automate driver assignments, marketplace integrations, and more to improve customer experience.
Boost fleet and driver efficiency: Improving fleet/ driver efficiency is the key to guarantee on-time delivery for last mile eCommerce. Auto-assignment features mixed with carrier integration will help boost delivery speed and accuracy, reducing first-attempt delivery failures. It additionally will give drivers the ability to provide updates, collect proof of delivery, signatures, tips, and more.
LogiNext is your one-stop solution to meet requirements for your logistics and supply chain needs. With a presence in over 50 countries and 200+ enterprise clients, you can be assured to find the best last mile delivery software to meet your last mile eCommerce use case. Contact our expert by clicking the red button below for more information.