delivery management

People as consumers have changed their shopping habits & behaviors during last 2 years. Covid-19 had a significant impact on how people shop, with more online shopping and even more last mile delivery. Quarantine rules forced people to trust and try E-commerce or online stores. This change got contagious within various industries, including food, fashion, electronics, and even grocery with less than 30 minutes delivery option.

Some might say this huge pump won’t last after covid era, but I should remind you, maybe we experience some kind of drop-off in delivery numbers and online shopping but it would be temporary and demand will keep growing based on reports and forecasts at least till 2025, secondly customers may shop online less than before but their expectations from shopping and delivery experience stay high as formed in Covid-19 era.

Let’s dive in and look for more details on this, shall we?

Customer behavior trends in delivery industry

“Customers will accelerate buying online and using home delivery. This was already happening, but the pandemic revealed to skeptics that it’s easy, it works and it makes their life easier. All businesses will need to have an online strategy or they’re going to get beaten by their competitors that embrace and execute an online sale and marketing strategy” Forbs

It’s not happening, it already happened. Customers now get use to buying online and expecting for delivery to arrive. As delivery service expand across many industries, it improved itself and change customers taste and needs. Now may people expect their food or groceries get delivered in half an hour. As people tend to buy their fast consuming good from an online store, delivery waiting time reduce under 30 min , Zoomato guarantee 10 min delivery in food industry. 24% of US online buyers choose same-day delivery for purchases from pure online retailers, according to a Statista. Even as early as this year, the rate had risen to 36%.

last mile delivery

Quick commerce or Q-commerce as we call it, is here to stay and expand fast delivery services in other industries. Even cannabis market demands faster delivery now, therefore businesses with same day delivery service or quick delivery service will conquer the market in every industry, as customer choose them over their competitor.

Last-mile Delivery Market size and growth

Last mile delivery market is and will be one of the most attractive markets across all industries. Due to IMF report about global economy growth, considering covid-19 impact on global economy growth and Russian invasion on Ukraine, global economy growth rate will reduce at least 1.5% from 2022 to 2021. In conclusion not every market experiences growth above 5% annually till 2025. But last mile delivery market isn’t every market, let’s find out why.

Statista reports global last mile delivery market double in value from 2020 to 2027T from 100B to 200B, Amazing growth. ReportLinker reports last mile delivery market CAGR at 13.1% from 2022 to 2026.

delivery management

This growth is outcome of consumers changed behaviors and proves us this new way of shopping is here to stay and expand all around the world. It’s very interesting that APAC solely is responsible for 59% of mentioned growth in last-mile delivery market and only 35% of the growth till 2026 is contributed by North America. Report shows that US, India and APAC have highest growth globally. If you are starting your business in one of this location, you will be OK.

Market size is forecasted differently, every market research institution has its own numbers and calculation, but all of them report significant growth in last mile delivery market at least with 9% CAGR.

Last Mile delivery, newborn trend in many industries

As we discussed last mile delivery will have amazing growth during next 5 years, mainly in APAC, India & North America. But which one the various industries attract the most significant growth compare to others? Which industry is the next one that home delivery trend would hit?

The answer in a nutshell is food and grocery. E-commerce and online stores or online shops are hitting to the sky, but grocery & food are pure gold in that market. Home Delivery trend started with non-fresh goods, because it was easier to transport and store and also people doesn’t show interest to experience online shopping for their food or grocery, but Covid-19 change that attitude. Lockdowns forced people to test online shopping for their kitchen and lunch table & guess what? They like what they saw. Here it is the start of an era, quick commerce or Q-commerce era, from order placement till your order get delivered on your doorstep under 15 minutes.

Q-commerce is about warehousing and delivery management and it’s absolutely the huge last-mile delivery growth accelerator during next 5 years. Zoomato, Dordash, Ubereat, Grubhub etc. are just few examples of how big this market is.

 

On the other hand, q-commerce will change customers expectation for better across other industries. Even people who buy a book online tend to ask “do you have same day or next day delivery service?”. People love speed and fast services – another effect of modern world and social media – and online grocery stores prove that items can be delivered under the 30 minutes. Now they know it’s possible and they experience how amazing it is and want it every where in every shop they do.

New definition of last mile delivery service level

e-commerce and after that, q-commerce change how customers think and make decision to buy. Many surveys show that more than half of an online store visitors, make their shopping decision based on delivery options. In grocery and food industry more than 75% customers intend to buy if your e-commerce has same day or same hour delivery option. Home delivery itself is not good enough anymore, you as e-commerce manager or delivery manager should provide same day or even same hour option to stay in market competitions.

Big tech company have intention to conquer all of the market and remove every week player within it. Providing quick delivery is not an option but an obligation and beside tat customers wants 100% clarity and have higher expectations. Driver and order tracking, informative notifications during delivery process. It’s not about delivery any more it’s about experience. Companies try to deliver a great shopping experience and the most important part is delivery experience.

Conclusion and what a business should do?

Covid-19 and E-commerce trend have changed consumers shopping habits and attitudes. It’s the main factor that last mile delivery management big growth all around the world. Specialist expect overall market value hit 200B till 2027. Food and grocery industry are tow main industries that accelerate this growth and customers have higher expectation in these segments due to the goods and it’s fresh inherent. They choose online store based on delivery options and after first shop, based on experience they have. You must be quick, clear, informative and fair in the same time to stay in competition with big companies like Deliveroo, Grubhub, Doordash etc.

If you provide delivery service for your customers remember to follow trends, new techs and software. Wearhouse management, last mile delivery management software was a good option but now it’s a must and obligation for businesses. Examine and define a clear delivery process for your business, talk with your customer to find out which part of their experience was not perfect and see what you can do about it. Remember it’s not just a simple shopping, it’s an experience that you would be rated with.

Angariium is a simple and smart last mile 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. intelligent features in Angarrium help you experience agile management. You can easily see our demo and test Angariium software by clicking in bellow button.

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