Last Mile Delivery: Facts and Trends

last mile delivery

last mile delivery

As the e-commerce market continues to expand, it’s becoming more important than ever for businesses to provide superior shopping (and logistics) experiences in order to win customers over. Many businesses are doing this by offering shipping options like 2-day delivery and same day delivery, as well as last mile delivery.

Last mile delivery is a huge opportunity for both e-commerce companies and logistics businesses. In fact, last mile delivery is believed to be a $3 billion market for transportation companies, as customers continue to demand this service as part of their overall e-commerce experience.

Investing in last mile delivery is a no-brainer for your business. But before you do, it’s important to know how it works and what the current and future business landscape for it looks like. Keep reading to learn facts and trends about last mile delivery so you can seamlessly incorporate it into your business.

What is Last Mile Delivery Exactly?

Last mile delivery is the process of moving goods from a transportation hub to the final delivery location, which is usually the customer’s home. The purpose of this delivery option is to deliver items to a customer in the fastest and most effective way possible.

A lot of companies are investing in it because it serves as a key differentiator for retailers, many of whom are selling products that are similar or identical to that of their competitors. It’s a logistic method many companies are using, from shopping marketplaces like Amazon to food and clothing companies.

Setting up a last mile delivery system can be tricky and time-consuming, but it’s incredibly important to do. Why would a customer buy your product when they can buy the same one from a different business and get it delivered the same day?

Last Mile Delivery: Facts and Trends

Now that you know what last mile delivery is, here are some facts and trends to keep in mind before building out your own system.

1. Customers Expect Immediate Delivery for Certain Products

Today, there’s an increased demand for 2-day and same day delivery. While customers may be willing to wait a few days for large parcel items like furniture, they’re unwilling to wait that amount of time for smaller goods.

This poses a challenge when it comes to planning logistics, as items need to know be fulfilled in only a matter of minutes. By the time the order you receive the order, you have to immediately process it and have it ready for delivery. This trend is greatly affecting pharmaceuticals and food delivery services where customers have an immediate need and want their product right away.

2. Customers Want to Know Where There Package Is

Now more than ever, customers want to know where their packages are, and when they’ll get to their address. This is an important technology for last mile delivery because it helps keep track of when a package is late or get lost. Many businesses and logistics companies are creating websites for tracking packages or letting customers keep track of the delivery with their GPS and smartphone apps.

Local last-mile delivery organizations may not have the technology to create this technology, but they should try to invest it in nonetheless. Customers want this kind of technology and will shop with businesses who can help them keep track of their packages.

3. Companies are Creating City Warehouses

As more customers expect and demand same-day instant delivery, companies are investing in delivery hubs. This trend involves companies building and using urban warehouses so they can easily access and deliver products to their customers.

Investing in these warehouses is essential for reducing transit time for deliveries, and makes it possible for companies like Amazon to offer 2-day delivery. Most retailers do not yet offer this delivery option, so those that can have a big advantage in the marketplace.

4. Companies are Using Delivery to Upsell Customers

Thanks to data, companies can now predict what other products a customer might want, even if they haven’t ordered it. Companies are now loading non-committed inventory into their truck, which allows couriers the chance to convince customers to buy it during last-mile delivery.

This technology lets companies like Amazon keep items on the truck that customers may want, like items they’ve previously ordered and may need again, such as toilet paper or household essentials. This lets companies make even more money in the long run.

5. Customers are Willing to Pay More for Better Delivery Options

Most shoppers have a habit of abandoning their shopping cart due to unexpected shipping costs. But 25% of shoppers say they were to pay significant shipping costs for same-day delivery or features like in-home delivery or being able to schedule their delivery date and time at checkout.

This number will grow even higher as millennials become the largest share of the market. Thanks to companies like Amazon, customers are used to 2-day or same day shipping, and they’re willing to pay more for that delivery benefit.

6. Delivery Technology is Only Becoming More Advanced

While this trend isn’t in full-force yet, companies have already started investing in advanced delivery technology. The most expensive part of delivery is labor like drivers, so it makes sense that companies are investing in technology like self-driving cars, drones, and robots.

Companies like Yelp are already testing out robotic delivery, which is a service that could be offered 24 hours a day. The only downside is that it requires a human agent to accompany them in case something goes wrong. But it’s believed that as technology continues to rapidly evolve that there will be less of a need for human delivery agents.

Final Thoughts

As e-commerce and shopping behaviors evolve, companies and their logistics need to grow to keep up with consumer demands. By investing in last-mile delivery, you can provide a superior shipping and delivery experience for your customers and convince them to shop with you over your competitors. As a business, you should be actively working to perfect your last mile to keep costumers satisfied and coming back for more.

Have you started building out your last mile network? Or are you looking to partner with a last mile courier to assist you? Let us know in the comments!

Final Mile Delivery Way to Go for Large Items

 

Final mile deliveryLarge Items? No Problem. Final Mile Delivery is at hand.

Shipping and delivery are two of the most important components of customer fulfillment nowadays. And, while smaller items may not be considered a huge logistics issue, what about getting those larger items to their destination in a timely fashion? What about shipping something the size of a grand piano? Final mile delivery provides an answer.

The problem with large items

Bulky, weighty and expensive may be three adjectives which come to mind when thinking of getting large items delivered. The weight and girth are major factors in getting items shipped. Also, logistically speaking, getting them that “final mile” presents a conundrum. All of which is costly to both shipper and recipient. Smaller businesses especially complain about the rising costs. Final mile delivery is designed to deal, specifically, with this very issue.

No warehousing – no problem

Space is another major concern, especially with sellers or retailers who do not have space to store items and have them on hand for shorter customer delivery. Space is costly, square footage being rated at a premium, especially of late. This adds considerably to costs as well as time of delivery. One of the most major benefits of final mile delivery is that warehousing locally can be provided to stage items until they are ready to ship locally, reducing costs drastically and improving delivery time by leaps and bounds.

Move shipments as fast as a large online retailer

Not everyone can operate as do some of the online retail giants. Warehousing and bulk delivery options are limited for lesser-sized organizations. Options for delivering items, especially in a timely fashion, are few. That is one of the greatest benefits of many retailers is that they have shipping locations strategically placed in localized regions for optimum shipping time and cost. Final mile delivery brings this as a possibility for even the smallest of organizations.

How to get large items delivered and not break the bank

“Final mile delivery” is all you need to know in getting large items to their destination in a timely fashion and as cost-effectively as possible. It takes the “final mile difficulty” out of logistics, giving even the smallest of companies a competitive edge on servicing the end recipient with products of even large or unusual size. Here is a breakthrough in service where it is vitally needed.

For the largest of items in need of shipping, fast and in a cost-efficient manor, Need It Now Courier provides the ultimate in logistical solutions for companies of all shapes, sizes and configurations. The possibilities are now near-endless with final mile delivery shipping bulk, heavy and large items, nearly as easily as small ones, and for a fraction of what it may cost otherwise. The bottom line is that it may mean everything to your bottom line. Inquire about it now.

3 Ways Final Mile Deliveries Go That Extra Mile

Final Mile DeliveriesFinal mile deliveries are what’s been missing

In business you need to act fast. Therefore, anything standing in the way of speed of delivery to clients or customers is a hindrance to business growth. Logistics has fast become a problem for many in this fashion. Fortunately, final mile deliveries have also become front and center and solve such logistics problems in several ways.

Road blocks can block business

In a journey of a thousand miles, it could be said that the final one is the toughest. What with traffic and congestion, a five-minute trip can take an hour. Final mile deliveries utilize methods of getting a shipment to destination without such barriers, including direct messenger service. And, face, it, in this fast-paced world, timing is everything in that it can make or break a business.

Personalized service is the new “service”

Everything in this modern world has been moving toward fulfillment, service and even personality. Modern marketers talk of the new-age customer wanting to get personal and feel a connection to those with whom they interact and do business. Final mile deliveries are the epitome of personalized service. From cargo bay to doorstep, with personal delivery and even confirmation of the article condition, packages large and small are in good hands and well-received by recipients.

Logistics for all shapes and sizes

Logistics often involve many factors, including people. Some transactions between business and customer are literally between two people: business person and customer. Not everyone can operate with logistical teams the size of large corporations. Final mile deliveries fill in the gaps of missing logistics. Large companies, however, do not always have the logistical facilities available. This makes this delivery method a choice way to get things into the right hands at the fastest speed possible.

Final mile deliveries deliver

Many can claim to go the extra mile, but can they go the final one? Speed of service, impeccable logistics and personalized service are among the simplest demands of those living, working and operating in this fast-paced, need-it-now, on-demand world we live in today. Delivery is held to a new standard and needs to change with the times. Final mile deliveries are achieving this, every day, every shipment, from the smallest to largest of items and parcels.

If you need it now, or need someone to have it now, check out Need It Now Courier to deliver more than just an item to a recipient. Deliver logistical solutions, rapid delivery and incredibly-personalized service for much more than just a package-in-hand, but a relationship to customers.