Building a loyal customer base is vital to the success of any business, and a great way to do this is to understand their wants and needs. Nowadays, eCommerce buyers don’t like having to wait for their orders, in part because the internet has conditioned them for instant gratification. Improved and modernized technology has made same-day shipping delivery a feasible way to improve customer satisfaction and increase sales while keeping services affordable. 

As online shopping has exploded in popularity over the course of 2020, mostly because of the lockdown caused by the ongoing COVID-19 pandemic, online retailers and logistic companies have been forced to find better ways to meet the changing needs of their buyers. As said, customers expect fast delivery, and modern technology can provide it. However, it also comes with some unique challenges. 

 The order and delivery process begins when buyers place an order and end with the product’s safe arrival at their doorstep. Precisely this last stage in the delivery process represents the biggest challenge and expense for many retailers and logistic companies, and it’s called last mile delivery.

What is Last Mile Delivery?

 Last mile delivery is the transfer of goods from a warehouse to their final delivery destination, which is, in most cases, a personal residence. The goal of last mile delivery is to deliver goods to the buyer as quickly as possible while minimizing company costs. 

 The Problems and Challenges of Last Mile Delivery

 One of the main problems with last mile delivery is its inefficiency. There is too often a gap between when the order is marked ‘out for delivery’ and when it actually arrives at the buyer’s doorstep. The speed and efficiency of this process depend on these factors:

• The size of the company

• The number of orders that are picked and packed each day

• The frequency of orders that are picked by the carrier

• The proximity of delivery points to the warehouse

• The location of the warehouse

• The number of deliveries along the route

• The number of routes

Should You Invest in Last Mile Delivery?

Last mile delivery is one of the biggest areas that is attracting attention from market players operating in the e-commerce, logistics, and supply chain sectors. Many innovative solutions have been developed that address the current challenges and issues of last mile delivery, and which enhance the customer experience. 

Investors have recognized the opportunities in this area and are pouring in money on startups that are working on the solutions. Additionally, the governments have realized the potential of autonomous technologies and are granting permissions to test the solutions developed by these startups. It’s just a matter of time when the novel last mile delivery solutions will be developed and will bring significant changes in the coming years. The numbers say the same. According to the report published by Allied Market Research, the global autonomous last mile delivery market is estimated to reach 75.65 billion dollars by 2030. One of the major reasons for such large deployment and growth will precisely be technological advancement.

Do you need help understanding the Last Mile Distribution process? For more information, you can reach us at info@cbi-commercial.com