Top Last-Mile Delivery Is...

Top Last-Mile Delivery Issues in E-Commerce: Solutions for Cost, Delays, and Failures

Dec 12, 2024
Top Last-Mile Delivery Issues in E-Commerce: Solutions for Cost, Delays, and Failures

Last-mile delivery is the final stretch of the journey when your package is getting close to your door. It sounds easy, but anyone who has tried to get a package delivered knows that it’s actually one of the toughest parts of e-commerce logistics. It’s where things can go wrong, and when they do, customers get frustrated. After all, nobody wants to wait forever for that new trendy outfit.

For businesses, these pain points - high costs, delivery delays, and failed deliveries - can be real headaches. But here’s the good news: these problems are totally fixable with the right strategies. Let’s take a look at the top three pain points and explore some simple ways businesses can improve their last-mile delivery process.

1. High Costs: The Price of Getting It Right

Last-mile delivery is often the most expensive segment of the shipping process, accounting for approximately 53% of total shipping costs, according to Statista. And it’s no wonder. Think about it: fuel, driver wages, vehicle maintenance. All these things add up. This substantial expense can strain profit margins, especially for businesses offering free or discounted shipping options.

With approximately 80% of global GDP generated in urban environments, the rise of urbanization presents new challenges. More customers are concentrated in cities, making delivery networks more complex and costlier to manage. This is further compounded by the projected growth of e-commerce, which is expected to account for 24% of global retail sales by 2026.

So, how do you make it work without raising prices or losing out on profits?

  • Route Optimization: Think about how frustrating it is when you’re stuck in traffic and your delivery is late. Now imagine being able to avoid that traffic in real time. With route optimization, businesses can save on fuel and time by using technologies to find the fastest and most efficient routes. It’s like having a personal GPS that helps save you money and time.

  • Partner with Local Delivery Services: Instead of managing the full logistics process yourself, why not partner with local courier services or third-party delivery companies? These businesses already have the infrastructure in place, and working with them can help save on operational costs. It’s a great way to keep delivery efficient without the need to build an entire logistics network from scratch. Plus, these local services know the area well, which can help avoid delays and ensure a smoother delivery experience for customers.

  • Parcel Lockers - Convenience and Cost Savings: We’ve all been there, waiting for a package, only to have it left on your doorstep to get stolen or damaged. Parcel lockers are becoming a popular alternative for deliveries. Customers can pick up their packages from a secure locker instead of waiting for home delivery. This saves businesses money by reducing failed deliveries, and customers get a more reliable service.

These solutions not only help reduce costs but also make the whole process a lot more efficient and customer-friendly.

2. Delivery Delays: When Time Isn’t on Your Side

Let’s be honest: Delays are the worst.

You know when your tracking page says “out for delivery,” but hours go by and nothing shows up. For businesses, delays can lead to unhappy customers, lost sales, and even negative reviews.

But here’s the thing: Delays don’t have to be a part of the equation.

  • Real-Time Tracking to the Rescue: One of the best things about real-time tracking is that it keeps your customers in the loop. Instead of wondering where their package is, they can see exactly where it is and when it’s expected to arrive. It reduces anxiety, builds trust, and keeps customers happy. Plus, if a delay happens, they’re already aware of it and aren’t left in the dark.

  • Reroute on the Fly: Life is unpredictable. Things happen, like road closures or bad weather. But instead of letting it cause a delay, dynamic rerouting allows drivers to change their route based on real-time traffic data. It’s like a backup plan for your backup plan, ensuring packages still arrive as quickly as possible.

  • Communicate Early and Often: If there’s going to be a delay, let your customers know in advance. Send a quick text, email, or app notification about the updated delivery time. The more you communicate, the less likely customers will get frustrated. People appreciate honesty and transparency, and it makes them more likely to stay loyal.

By keeping customers informed and using tech to reroute when needed, businesses can tackle delays before they become a problem.

3. Failed Deliveries: The Dreaded "Sorry We Missed You" Notice

You know that sinking feeling when you go to check your door, and instead of a package, there’s a "Sorry We Missed You" notice? It's never fun. Failed deliveries are a major pain for both businesses and customers, and they can happen for a variety of reasons - incorrect addresses, no one home, or just poor planning.

So how can you avoid this?

  • Flexible Delivery Options: Not everyone is home during the day, and that’s okay. Offering flexible delivery windows, like evening or weekend delivery, means customers can choose a time that works for them. This small change can make a huge difference in reducing missed deliveries.

  • Address Validation - A Simple Fix: One of the most common causes of failed deliveries is an incorrect address. But with address validation tools, businesses can catch mistakes before the package is shipped. It’s an easy way to save time and avoid a lot of headaches down the road.

  • Proactive Communication: If a delivery isn’t going as planned, keep customers updated. A quick text or email to let them know what’s happening and when they can expect their package will help smooth things over. Even offering a chance to reschedule the delivery shows customers you’re doing everything you can to make it right.

When businesses put these simple strategies into action, failed deliveries become less common, saving both time and money in the process.

Wrapping It Up: Last-Mile Delivery Doesn’t Have to Be a Pain

Last-mile delivery doesn’t have to be the hardest part of the shipping process. Yes, it’s challenging, but with the right tools and strategies, businesses can make it smoother, faster, and cheaper for everyone involved. By tackling high costs with route optimization, reducing delays with real-time tracking, and cutting down on failed deliveries with flexible options and proactive communication, businesses can set themselves up for success.

How Parcel Monitor Can Help

When it comes to last-mile delivery, data is key. Parcel Monitor provides valuable e-commerce logistics insights that can help businesses improve their delivery strategies. With detailed tracking data on delivery times, success rates, and issue rates, you can pinpoint where things are going wrong and make smarter adjustments. Plus, with quarterly e-commerce logistics data reports, you can benchmark your performance against competitors to stay ahead.

It’s all about using data to fine-tune your delivery process, reduce costs, and keep customers happy without the guesswork.

Share this with your network

Also worth your time