7 Trends in Last-Mile Delivery to Watch in 2022

We all know it. The pandemic has revolutionized consumer behavior in ways that we could have never imagined, from the increased reliance on online shopping to the preference for collection points as a delivery method of choice. Yet, one thing remains unchanged in customers: their sense of immediacy.
E-commerce companies nowadays are placing a great deal of emphasis on improving last-mile logistics. With multiple e-commerce options available in the market, consumers can now easily choose where they want to order from. This makes it all the more important for retailers to differentiate themselves from their competitors in trying to provide the best possible delivery experience.
What last-mile delivery trends have e-commerce brands leveraged to keep up with the market? Here are the top 7 last-mile delivery trends that you should look out for in 2022.
1. Rapid Last-Mile Fulfillment
Gone are the days when it is acceptable to receive online purchases within one or two weeks. 68% of consumers even claimed that they will only shop if fast shipping is available. Furthermore, 90% of consumers expected to receive their parcels within a week even with free shipping.
Bigger retailers such as Amazon and Walmart have raised the bar on consumer expectations with their same-day shipping. Therefore, it is important for retailers to optimize the order fulfillment process to meet the rising demands.
2. Urban Warehousing
While many physical retailers have closed down, e-commerce giants are taking the opportunity to turn them into urban warehouses. Opening fulfillment centers in a heavily populated area allows retailers to have closer and faster access to a large volume of people while maintaining a great profit.
One great example of this is how IKEA has opened a new store in one of Europe’s busiest shopping streets to make their products even closer to customers. Since a vast majority of shoppers reside within the metropolitan area, retailers would have easier access to provide fast shipping or even same-day deliveries.
3. Insourcing Delivery
Last-mile logistics can arguably be the most expensive cost in the supply chain process, accounting for 53% overall cost of shipping. To reduce final mile logistics costs, some retailers have opted to handle them in-house, or work together with competitors in the region to share delivery fleets.
Given that e-commerce growth is here to stay, online retailers such as Kogan.com and Temple & Webster have started to consider insourcing fulfillment as well. Although retailers have traditionally outsourced logistics to have more flexibility as demand fluctuates, investing in in-house fulfillment is starting to make more sense as retailers look to scale up.
4. Robotic, Drones & Autonomous Vehicles
As e-commerce demand peaks, companies need to gear up their manpower to deliver parcels. However, we’ve seen how there is a labor shortage in recruiting qualified drivers.
More and more retailers today have started to experiment with robotics, drones, and autonomous vehicles as delivery modes. Recently, Walmart has teamed up with Zipline to pilot their drone-delivery system.
5. Customer Experience through Last Mile Delivery
When it comes to traditional retail, customer experience is more or less defined. In the world of e-commerce, however, the definition is blurry. When you think of it, last-mile delivery might be the only moment where the brand meets the customers directly.
Customer experience in last-mile delivery is now more crucial than ever; 84% of consumers even stated that they were unlikely to make a second purchase after a poor last-mile delivery experience. Therefore, improving the delivery experience is key.
Some examples of how brands can do this are by updating their customers with the parcels’ estimated delivery date, thus allowing customers to track their parcels in real-time.
To continue reading
Sign Up for FREE
Unlimited access to exclusive data insights
Be in the know of the hottest events
Receive weekly roundup of latest industry news
Also worth your time
Track your parcel here
Event Highlights
Europe
Retail & E-Commerce
World Retail Congress 2023
Apr 25 - 27, 2023 | Hotel Arts Barcelona Carrer de la Marina, 19-21 08005 Barcelona, Spain
North America
Logistics & Supply Chain
Retail Supply Chain & Logistics Expo Las Vegas 2023
May 03 - 04, 2023 | LVCC Las Vegas
Europe
Retail & E-Commerce
Shoptalk Europe 2023
May 09 - 11, 2023 | Fira Gran Via, Barcelona, Spain
Europe
Retail & E-Commerce
IRX & eDX 2023
May 24 - 25, 2023 | NEC Birmingham, United Kingdom
Europe
Logistics & Supply Chain
DELIVER Europe 2023
Jun 07 - 08, 2023 | Taets Art and Event Park, Amsterdam, Netherlands
More discoveries
Alcott Global Podcast: Driving Business Growth and Operational Excellence in the Supply Chain
Mar 29, 2023
Levi’s Partners With Digital Fashion Studio Lalaland.ai to Test AI-Generated Models
Mar 29, 2023
A.P. Moller - Maersk Introduces Air Freight Service Between Europe and China
Mar 28, 2023
Alcott Global Podcast: Vision of Customer-Centricity in Supply Chain
Mar 27, 2023
Retail Case Study: Breaking Down Shein’s Winning Retail Strategy
Mar 24, 2023
Funding Roundup: Elyn, Pidge, Vue Storefront and Others Score Early-Stage Capital
Mar 24, 2023
Ninja Van: Ninja Xpress Introduces DWS Technology to Enhance the Productivity of SMEs
Mar 24, 2023
Astute Analytica: Global 3PL Market to Exceed $2.3 Trillion in Revenue by 2031
Mar 23, 2023
DHL Group Wraps Up 2022 With Record Revenue of EUR 94.4 Billion
Mar 22, 2023
USPS: Standard Delivery Time Remains Stable throughout Postal Service Network
Mar 21, 2023
3 Burning Questions: Emerging Trends in Logistics & Supply Chain With Ingka Group (IKEA)
Mar 16, 2023
The Alibaba Group Reports Q4 2022 Financial Results
Mar 16, 2023
Ninja Van Focuses on Hub Automation, Stepping into the 8th Year of Operation
Mar 15, 2023
Navigating the Top Pain Points of Parcel Deliveries in Asia
Mar 14, 2023
YunExpress, Elogistic and Super Smart Service rebrand as CIRRO in Europe, North America, and Oceania
Mar 13, 2023