ecommerce delivery

We all see the recent growth of the eCommerce industry, especially during the Covid-19 pandemic. ECommerce has grown into a $3.88 trillion global market in 2020 & according to insider intelligence we expect US eCommerce sales will cross $1 trillion for the first time in 2022

According to Digital Commerce 360, consumers spent $861.02 billion on online shopping in 2020, a 44% rise over the prior year& according to Oberlo in 2021, there will be over 230 million US digital buyers—a 1.32 percent increase from 2020.

When it comes to E-Commerce, handling deliveries managing last-mile delivery processes will be a crucial segment for this industry which is high cost. According to a report by SOTI Inc., more than 61% of logistics companies agree that last-mile delivery is the most inefficient process in the entire supply chain.

What is Last-mile delivery?

Delivery consists of three general parts: the first mile, the mid mile, and the last-mile delivery. Last-mile delivery is a process that starts from the warehouse and ends at the customer’s doorstep. Processes in this stage need to be quick, accurate & deliveries must be on time all next day, same day, or OnDemand deliveries.

According to Statista, by 2027, the global last-mile delivery market is expected to grow to more than 200 billion U.S. dollars from 108.1 billion U.S. dollars in 2020. The growth of the last mile delivery market is led by the increased number of online orders.

When we talk about last-mile delivery, we talk about an important stage that deals with customer satisfaction which has its challenges for most e-commerce businesses.

Here are 4 crucial last-mile delivery challenges for e-commerce:

proof of delivery

1- High delivery costs

According to statistics, about 50% of delivery costs occur in the last mile. Rising last-mile delivery costs is one of the biggest issues which can affect both the customer & the company. This is while in this age, a large majority of consumers expect free shipping services for each online purchase they do. According to PYMNTS, about 56% of consumers consider free shipping for digital orders an important feature for merchants to offer, with 13% saying it’s the most important one.

Last-mile delivery involves costs such as labor & delivery drivers, delivery vehicles fuel, reverse logistics, etc. & we should consider that these kinds of costs may be different per company.

2- Late delivery

A delay of the agreed delivery time between seller & buyer, for which the buyer is not responsible for this delay, is known as a late delivery. The most common reasons for late delivery are inefficient delivery routing, incomplete address, incorrect customer contact information, weather conditions, unpredictable events like a car crash, traffic, etc.

But the important point in late deliveries is about the customer experience. A late delivery means that you haven’t provided a service your customer has paid for & especially in their first purchase, it’s not a good starting point for your relationship with that customer. It came out of a study that about 17% of consumers will stop shopping with a retailer after receiving a late delivery one time (How Late Deliveries Impact Customer Retention?)

3- Communications with customers about their delivery status

In this technology base word where customers are empowered more than ever, they all expect to inform about their delivery status & track their orders. More than 2 third of customers expect a LIVE track on the status of their orders at each stage of the delivery process. There are several ways to inform customers about their delivery status like SMS when the delivery is on way, real-time tracking on a map, communicating directly to the diver, enabling them to rate the delivery & express their experience, etc. On the other hand, without a reliable & accurate process, it makes a high-cost effort for businesses to answer customers’ calls about their delivery.

delivery management software

4- Reverse Logistics Optimization

Reverse last-mile logistics happens when a customer decides to return a product. This is the reverse of the last mile portion of shipping that goes from the customer back one step in the logistics process. This stage is one of the high-cost ones in the process which has direct effects on customer satisfaction & loyalty so finding out a way to optimize this part of the process is one of the most important challenges for e-commerce businesses.

Angariium is a simple and smart delivery management software that helps you manage your fleet and delivery process without any doubt. By using Angariium you have easy access to every feature you need for your managers.  You can easily see our demo and test Angariium software by clicking in bellow button.

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