November 2017

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!

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shipping restrictions

Shipping Restrictions: What You Can and Can’t Ship

shipping restrictions

shipping restrictions

Since the inception of the United States Postal Service, we have been ‘shipping’ things back and forth to each other across valleys and mountains alike. It’s a great way to keep in touch with friends and family – sending care packages and gifts. Or leftovers from childhood. Or trinkets from your travels. We like sending things to others because we want to share our environments with them. Especially those that live particularly far away.

Whatever you’re sending, you need to be sure there are no shipping restrictions associated with the items in your outgoing packages. Every service, from the USPS to FedEx and USPS, and other carriers have shipping restrictions. These restrictions range from limitations on items and how they’re packaged to that of which may be considered illegal activity.

We’re here breaking down a list of shipping restrictions across the globe so you can rest easy when you’re sending something in question. Keep reading to learn more.

Alcoholic Beverages Come With Strict Shipping Restrictions

It is absolutely illegal to ship alcohol through the United States Postal Service. There are no acceptions to this rule.

If you must ship alcohol, you’ll need to learn about the specific guidelines and regulations in your state.

Generally, you can ship alcohol via FedEx if you’re licensed to do so. UPS doesn’t accept shipments of beer or alcohol for delivery to consumers. But UPS does ship between selected states depending on the nature of the transaction.

When shipping alcohol, it is imperative to wrap it with several layers of soft packaging to prevent leaks if it breaks or becomes compromised. You’ll also need to include the Adult Signature Required option on your shipping package. The Adult Signature Required option will require the recipient to present their ID at time of delivery.

You should try to stick with sending only a few bottles of alcohol at any given time to avoid penalties associated with these regulations that recommend you don’t ship in volume.

Breakables

You can ship things that are breakable but it is strongly recommended that you package the materials accordingly.

Depending on the value of what you’re shipping, it could require insurance. Even while shipping services take the best care possible with your packages, accidents happen and breakables do break.

Follow the packaging guidelines set forth by your carrier. Most carriers recommend selecting a box that is at least two inches larger than the item you are packaging in all directions. Then, put three inches of padding on the bottom and cover the item(s) with three more inches of padding.

Padding material should be something like bubble wrap or peanuts. Something that will withstand impact, such as dropping.

Computers and Electronics

The post office notoriously asks if you are shipping items with lithium or ion batteries because they have shipping restrictions associated with these items.

Computers and electronics often have lithium or ion batteries and they can ship with any carrier. You’ll need to find out the shipping restrictions for each carrier based on how and what you’re shipping. It will also depend on where it’s going that could cost additional fees.

Generally speaking, batteries should remain in the device that is shipping and they should be small batteries. Make sure if you’re shipping something with a particularly large battery that you’ve checked the shipping restrictions with your carrier.

You should probably insure electronics and technology items because they can damage easily, even if you pack them well.

Perishables and Baked Goods

It’s okay to send food and crafts made with perishables but again, pack it well and pack it accordingly. You’ll also need to select faster shipping so the items don’t go bad in transit.

Check with your carrier about how you should specifically package food items, especially if they need to be kept cold.

Firearms and Hazardous Materials

Guns and ammunition are prohibited through the United States Postal Service.

FedEx will ship firearms as defined by the United States Gun Control Act of 1968, but only between licensed importers. Individuals may ship to licensed importers or manufacturers and dealers. Likewise, these importers etc. may ship to individuals.

UPS accepts handgun shipments by next day air. You can ship rifles and shotguns using UPS’ ground service.

Hazardous materials include items like gasoline and explosives. You may not ship these items with any carrier. There are no exceptions to this rule.

The shipping restrictions for hazardous materials are maintained in the commercial sector and should not be violated.

Tobacco

FedEx prohibits the shipment of tobacco but UPS does accept shipments from shippers with the proper licensing. Shipping restrictions surround local and federal laws.

You can ship cigarettes and smokeless tobacco through the United States Postal Service. A Post Office or Postal employee must approve the package prior to shipment.

Live Animals

You can ship live animals with UPS from any UPS shipping facility for next day delivery only. You may not ship on Fridays or before a holiday in the origin or destination country.

FedEx ships zoo animals and horses but does not accept household pets such as domestic cats and dogs. Live fish are not accepted.

There are some animals that you may ship with the USPS but you should check their shipping restrictions. Mostly these conditions apply to special shipping options for animals such as live, day-old poultry, or adult birds.

When You’re Shipping

Whether you’re shipping across the street or around the world, there are regulations for your packages across all carriers.

Make sure to pack your boxes efficiently so that items won’t rattle and break or become exposed in transit. It’s always a good idea to get insurance on your packages. Your carrier should always provide you with a tracking number for your package so you know where it is and when it’s delivered.

As an added security measure, you should always notify recipients of packages that are getting delivered if you don’t ask for a signature on delivery. This will ensure that your recipients know when to expect the package.

When you’re ready to ship your next package, contact us for superior service and rates.

 

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Can Couriers Make The Quality of Life Better ? Where Technology Meets Humanity

Technology in our society advances quickly and constantly. Generally, it’s to improve our daily lives and we’ve seen incredible advancements. Just remember, that the cell phone hasn’t been around as long as we think — and yet, how could we live without it?

As technology has catapulted other areas of our lives, how has technology improved the way logistics and deliveries work? There are companies that are aiming to improve the way deliveries arrive into the hands of their recipients: faster, safer, and more accurately. Which companies are doing this? And how are courier companies able to take advantage of the rising technology?

Couriers and Humanity

In the warehouse, mobile technology is being harnessed to eliminate errors and mistakes in the large-scale process of logistics. Logistics encompasses door-to-door deliveries and global shipping, which includes a myriad of different steps. Courier and Logistics companies are coping with this by using tablets  to create a business that goes beyond simple deliveries. There is mobile tablet type technology that can be utilized as a constant companion while traveling through the warehouse inventory. The tablet is used to describe needed details as to particular items that can be instantly transmitted to those who need urgent information about the items to keep a plant running or keep a customer happy. There are programs that companies can download to list the work schedule for the day, scan the barcodes of all the packages to be delivered, and create the optimum delivery route to maximize speed and efficiency. Additionally, at each route stop, the courier can access information to help with the delivery, such as noting the code to the building or if there’s a dog that gets a little too protective of the residence. The tablet even gives instructions for each package, so if a package contains alcohol, the courier is instructed to check the ID of the recipient.

This puts more control into the logistics process and assists in fast reliable service to you and your customers.

The other day, a new app was introduced  to the market that connects to a house or apartment lock, and the courier, using the app, will be able to unlock it and leave a package right near your front door. However, the app includes a camera that turns on the minute the app unlocks the front door. Once the delivery is finished, you’ll get a video, through e-mail or phone, where you can watch the delivery. What’s incredible, is that the app can be used by different services from couriers to dog walkers.

Technology is connecting us and making our lives easier. Couriers are able to use to this technology to improve logistics and create more confidence for our customers and in turn their consumers or end users. At Need It Now Courier, we’re always on the cusp of new technology to help our clients. Find out how we can help your business deliver to its customers.

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