Benefits of Last Mile Delivery in E-Commerce: A Deep Dive
The benefits of last mile delivery are mostly derived from making happy customers. This final stage of the shipping process is your opportunity to WOW your customer and get repeat business. However, to reap these benefits, you need a plan.
According to the Council of Supply Chain Management Professionals (CSCMP), last mile delivery is a vital component in logistics. The main benefits include:
- Faster Deliveries: It speeds up the final transit of goods.
- Cost Efficiency: Route optimization can save costs.
- Customer Satisfaction: Real-time tracking and timely delivery please customers.
This article will lay out the benefits offered by final mile delivery in detail. You’ll learn how it can keep costs in check and give your business an edge.
What Are the Benefits of Last Mile Delivery Optimization?
As stated above, the two biggest benefits of a good last mile experience follow naturally from one another. Consumers spend more with companies they trust. Consistently excellent delivery experiences build that trust.
Let’s examine some statistics about the final mile that help to drive this point home.
Last Mile Delivery Statistics
| Percentage of final mile deliveries that fail | Eight |
| Average cost of failed delivery | $17.20 |
| Approximate percentage of orders that need more than one attempt | 10 |
| Percentage of customers who read reviews before they buy | 93 |
Source: info.loqate.com (2020)
That last statistic is worth further discussion. The final mile experience has a lot of impact on customer satisfaction. Even if they love the product, they are likely to dock points for late delivery. This can make or break a sale in the world of ecommerce.
It’s easy to see how an optimized final mile process contributes to growing your customer base and increasing profits by minimizing failed deliveries and negative reviews. Who could ask for more lucrative benefits than those?
Enhancing Customer Satisfaction
When customers get their orders quickly and without any hiccups, they tend to come back. Getting the last mile delivery process right is a key element of customer retention. Ecommerce companies that rely on outside logistics need to be careful about who they use.
Logistics companies have to be able to keep up with changes in consumer expectations and meet their needs as they become more demanding. Last mile solutions have to grow or shrink alongside these factors.
These are some of the ways that companies are improving last mile delivery service for ecommerce businesses include:.
- Fast Deliveries: Services like Amazon Prime offer fast shipping. Same day or next day delivery is available in more areas every day.
- Precise Delivery Windows: Lets customers choose delivery time, so they can be home or at work to receive packages.
- Building Brand Loyalty: Clothing retailer Zappos consistently delivers on shipping guarantees. The company has stellar customer service and fast shipping.
- Personalized Delivery Options: Offering options like “leave at the door” or “deliver with a neighbor” can make a big difference in customer satisfaction.
Customer satisfaction isn’t just about getting the package in the customer’s hands. It’s about making the entire process seamless and hassle-free. Doing so keeps profits up and leads to opportunities for growth and expansion.
Reducing Business Costs
Efficient last mile delivery contributes greatly to the bottom line. Optimized route planning helps save fuel, and consolidating packages leads to more streamlined deliveries. If you’re looking for a way to keep your costs down, this is a great place to start.
Environmental Impact
Lowering fuel use is also beneficial to the environment. The use of eco-friendly vehicles further cement the perception that a company is ‘going green’.
Every year, more customers take a company’s stance on reduced emissions into account when doing business. Even carriers are seeing the benefit of eco-friendly vehicles, especially in urban settings.
City driving typically eats up more miles per gallon in gas. Green rated delivery trucks then help in reducing costs for the company and improving air quality for the city.
Gaining a Competitive Edge with Last Mile Logistics
In the cut-throat world of logistics, the last mile can be your secret weapon to outshine the competition. You can use modern technology to simplify last mile practices and employ real-time final mile tracking to stand out.
These are some of the technology solutions that are improving the last mile process.
- Route Optimization Software
- Real-time Final Mile Tracking
- Smart Lockers
- Autonomous Delivery Vehicles
- Drones
- Communication Tools
Technology and customer focus elevate customer experience and give businesses an edge in logistics. Using drones and driverless cars may seem like a gimmick at the moment. Even so, there is strong evidence to suggest they will play a major role in the future.
Crafting an Effective Delivery Strategy
The only way to truly gain all the benefits is to have a solid plan in place. That means relying on smart data analysis to get the details right.
The right plan brings together details on:
- Optimized delivery routes
- Incorporating customer feedback into delivery options
- Balancing speed and costs.
These strategies improve last mile benefits and save your business money. The care to detail is what keeps customers coming back.
The Role of 3PL in Optimizing Last Mile Deliveries
Third-Party Logistics (3PL) warehouses offer another avenue for businesses to optimize their last mile deliveries. Working with a 3PL warehouse is a smart way for businesses to focus on their products and leave logistics to the professionals.
What is a 3PL, and Why is it Essential for Last Mile Delivery?
A 3PL warehouse manages and performs logistics operations for other businesses. The delivery process can be complicated. Companies who want to devote their in-house resources to other aspects of the business can benefit from working with a 3PL.
Services provided by 3PL warehouses and distribution centers include:
- Product storage
- Transportation
- Order fulfillment
By outsourcing last mile delivery to 3PL services, companies can streamline their processes and improve efficiency. Since these companies specialize in logistics, they can often provide advanced features and services. Such benefits aren’t possible from an in-house team without a major financial investment.
As an experienced 3PL, USA Last Mile Logistics is ready to help you tackle the final mile.
How Can USA Last Mile Logistics Help You?
Optimizing your last mile delivery has substantial benefits. USA Last Mile Logistics can assist your ecommerce business in taking advantage of them.
We’re not just a final mile carrier: our team has years of experience with every aspect of the logistics process.
Our logistics experts can assist you with growing your business via services such as:
- Expert consultations on last mile delivery strategies.
- Custom 3PL last mile delivery solutions.
- Comprehensive management of your logistics operations.
- And more.
Don’t hesitate to contact us or call us at 866-569-1445 and leverage the benefits of last mile delivery optimization!