Why is last-mile delivery important? Businesses need to consider all aspects of shipping, especially the last-mile delivery process.
Last-mile delivery is a term that is related to the final stage of an item’s journey. However, this last stage can be one of the more important considerations for businesses.
A bad delivery experience can lead to a bad reputation and higher costs. In this article, we’ll give you 4 factors to consider regarding the importance of last-mile delivery.
Customer expectations
Delivery is part of a customer experience. It doesn’t matter if they’ve had a positive experience throughout their journey.
If the shipping process doesn’t end well, it can tarnish the business’s image. A customer will likely remember the last interaction they had.
If items are thrown on the porch or damaged upon delivery, the customer will choose another company next time. It can also be a reason for them to leave a bad review.
Late or missed deliveries can also be a problem for customers. Businesses need to ensure accurate deliveries can be made so customers can expect when their items will arrive.
Businesses looking to improve customer expectations during last-mile deliveries, need to ensure drivers have the proper training to effectively deliver the package in a positive manner.
Businesses should also provide customers with shipping tracking information, so they can monitor their packages for expected delivery times.
Mistakes can be expensive
Last-mile delivery is important because it can make up a large portion of shipping costs, even when it does go smoothly.
This is why mistakes in the process can be expensive. The final delivery of a business accounts for up to 53% of the total shipping costs.
These are some of the costly mistakes to be made:
Bad routing
Companies that don’t use route optimization will cause problems eventually. Route optimizers choose the best/most efficient route for drivers.
It will also account for traffic, weather and construction delays, so you’re drivers always follow the best route.
Missed deliveries
Missed deliveries will happen, but mitigating them is the best option. Missed deliveries mean drivers have to attempt the delivery again costing gas and time.
Fuel costs
The cost of fuel can greatly vary depending on a driver’s day. If they have bad routing, missed deliveries or any other issues that cause them to waste gas, it’s a problem. Optimizing efficiency for your last-mile delivery lowers your fuel costs.
Is last-mile delivery even profitable? Check out our article “Is last mile delivery profitable?”.
Speed matters
Delivery speed has changed, and businesses have been able to improve delivery times throughout the last couple of years.
Companies like Amazon can even offer next-day shipping. This has risen customer expectations for delivery.
If your business can ship an item in 3-7 days but your competitor can ship the item in 1-2 days more customers will choose the faster delivery option.
Customers value speed, not only do they expect it, they are willing to pay for it. Delivery that takes 1-3 days is the most popular option for consumers.
Anything outside of those times and business risks losing customers. Delivery speed matters, it’s a factor in keeping and winning customers.
Future of ecommerce
Faster delivery is becoming the norm for ecommerce stores. Customers want their items quickly and businesses are willing to offer it.
Customer expectations, costly mistakes and speed are all factors in the success and importance of last-mile delivery.
However, it also relates to the success of an ecommerce business As all expectations around delivery change to improve, businesses will need to adapt to these new trends.
If your last-mile delivery isn’t up to the standards customer expect they will move on to a competitor.
Looking for ecommerce trends for 2023, check out our “Industry report: Ecommerce trends in 2023“.
Optimize Delivery with Breadstack
Optimizing delivery doesn’t have to be complicated. There is software out there that can help assist in delivery – Breadstack’s Delivery module does just that.
Some features of Breadstack’s Delivery module:
- Send shipments to the most suitable drivers with route optimization
- Track delivery from start to finish to have an overview of all shipments
- Set delivery status and details with each shipment
Ready to optimize delivery through software?
