Last-mile delivery, the movement of products from a hub of transportation to the last delivery destination, has become one of the important e-commerce systems. Because of the growing demand for integrated delivery systems around the world, there is an upsurge in last-mile logistics because this is a key differentiator for ecommerce companies.
It is expected that the market size of the last-mile delivery market is to increase by USD 165.6 billion between 2023 and 2027. The growth of the market may be based on several factors such as the rising number of various e-commerce companies, consumer behaviours, emergencies, and the growing need for warehouses.
Why Last-mile delivery?
- 73% of the global population is shopping online.
- The market is expected to grow continuously even after this decade.
- 45% of online shoppers are interested to buy from a company again if an order is late.
- 41% of consumers are ready to pay an extra charge for same-day delivery.
- According to 45% of online shoppers, retailers meet delivery expectations.
- 56% of Gen Xers and 55% of Millennials like online shopping.
- In Countries like the US, almost 157.4 million shoppers expect free two-day shipping on their orders, and some areas even prefer one-day or same-day shipping.
Without vehicles’ existence, shoppers won’t be able to receive their orders, and that is the reason why a trustworthy fleet of transportation vehicles is essential for the success of last mile delivery. It might be challenging to deliver on fast turnaround times, but it’s worth it from some brands’ perspectives such as Amazon Prime became an example wherein consumers don’t mind paying in excess for quicker delivery. Businesses compete in such a way that their tactics and eCommerce operations are customer-centric, 100%.
Here are the latest trends in last-mile delivery that supports companies to keep up with growing consumer expectations to get their orders faster. If you want to take your company forward to the next step, these trends may help you find out the right techniques.
Environment-friendly deliveries have created a big impact on retailers and logistics services providers and the approach to eco-friendly last-mile delivery strategies is a relevant business and societal challenge. By encouraging green deliveries, corporates want to achieve zero greenhouse gas emissions. More importantly, creating solid sustainability goals which consist of an eco-friendly last mile is a vital step in the fight against climate change. Businesses with business models that promote sustainability often win customers and it boosts their brand image. Nowadays, companies keep focusing on providing environment-friendly deliveries with the support of reusable packaging material and reducing CO2 emissions by utilizing delivery trucks that use green energy. According to a study conducted by the World Economic Forum, the need for last-mile deliveries may grow by 78% by 2030. The following are some environment-friendly techniques that companies can adopt for sustainable delivery methods to support an eco-friendly last mile.
- Monitoring an inventory of your current carbon footprintcan make you aware of what sustainability goals your company should adopt to save the planet.
- Discovering some essential steps to decrease your carbon footprint is the next important aspect of a sustainability initiative.
- Since general packing requirements may become a threat to our environment, identifying sustainable packing is a critical aspect of last-mile sustainability.
- Adopting strategies for utilizing green energy to reduce emissions as it makes a great impact in your company atmosphere as well.
- Communicate and give consumers a slower-speed choice which can contribute to decreasing harmful emissions. Researchers at MIT discovered that fast shipping not only increase expenses by up to 68%, but it also increases total carbon emissions by 15%.
Drones and Autonomous Vehicles
According to a study, almost 3250 parcels are transported globally every second. It is expected that it may be doubled by 2026. With a traditional approach to delivery, companies are not able to manage such a big volume of parcels. Consequently, e-commerce companies have taken modern approaches through autonomous vehicles, drones, and delivery bots. Drones and autonomous vehicles have been excellent solutions for last mile delivery. They have given benefits such as efficient delivery, cheaper operational cost, and environment-friendly technology and these are the primary reasons why they will have a positive impact on logistics.
In the future, e-commerce companies may adopt much more smart technologies and tools to enhance customer experience with last-mile delivery. It is expected that the global market size of autonomous last-mile delivery may reach $68+ Billion by 2028. E-commerce companies also keep trying to invent new devices and vehicles that can support fast and sustainable deliveries.
It was forecasted that last mile delivery will get more programmed through the execution of delivery drones. The heightened use of unmanned aerial vehicles (UAVs) for quicker delivery of goods is one of the main factors in the drone market’s growth.
The rising number of consumer demand for receiving anything quicker has resulted in e-commerce companies focusing more on faster deliveries. “The faster the happier” has become a watchword for every customer in the digital world. Fast deliveries are a must for businesses that deliver the products of quick needs. It is expected that the market size of global same-day delivery may grow at a compound annual growth rate of 20.3% from 2020 to 2027. Because of increasing urbanization, fast delivery is a must for companies such as:
- Direct-to-consumer model retail companies
- Food delivery companies
To conclude, last-mile challenges can be hard to handle if you are not knowledgeable about them. It is important to keep in mind that there’s no such thing as last-mile solution but you can apply these practices that can get positive results:
- Work harder to meet consumer demands efficiently
- Make on-time deliveries
- Delivery logistics’ smart automation
These right practices, when combined with an appropriate app, can lessen the risk of last-mile problems and start flourishing during the most challenging phase of the delivery business.
When it comes to online purchases, most customers demand same-day deliveries. Hence, companies need to arrange warehouses and hubs closer to the city. Urban warehouses have become a key place for guaranteeing fast logistics services in every urban hub. It is strategically positioned for the businesses, between its distribution center and the bulk of its clients, being an effective solution for complying with ecommerce business standards: same-day deliveries and trouble-free product returns. With the support of urban warehouses, companies are able to minimize the risk of damaged goods. It is an innovative approach to provide fast and professional services based on customer demands since retailers can gain quick access to a large volume of customers. Urban warehouses and fulfilment centres are two essential sources that can play a great role in fast deliveries anywhere in the world. The rise of ecommerce is one of the important reasons why urban warehouses have become well-known in supply chains nowadays.
E-commerce companies have adopted advanced technologies such as smart tracking to improve their last-mile delivery. With smart tracking, some important features such as real-time tracking, visibility, and route optimization are supporting them with seamless deliveries and fleet management. It also contributes to increasing cost-effectiveness, enhancing driving management, inhibiting auto theft, lessening vehicle idle time by route optimization, and boosting consumer satisfaction. By keeping the customers informed about the correct location of an item in transit by providing more visibility, e-commerce companies have developed a sense of secure deliveries among customers. As it helps ensure that products are delivered to customers on time and professionally, smart tracking helps improve customer satisfaction levels.
When it comes to last-mile delivery, technology plays a key role to break boundaries. With the support of the latest technologies, the last-mile delivery system keeps growing to meet consumer demands. It is expected that this system will continue with the growth of e-commerce because of its increased needs. And also, to keep ahead of competitors, it is a must for every company that wants to achieve in the digital world. Hence, companies are to stay on the latest trends in Last-mile delivery to advance sales and marketing.