With up to 70% of e-commerce purchases expected to be delivered from local inventory by 2025, U.S. retailers must consider last mile delivery services to stay competitive. Lightning-fast, courteous deliveries considered premium not long ago are now baseline consumer expectations.
For retailers, it can either be an opportunity to outperform competitors and keep customers returning for more or a burden to meet consumer expectations. While last mile deliveries can provide a profit boost when done right, they also have the potential to go awry, with consequences negatively impacting a retailer’s reputation.
We're excited to provide this data-driven guide behind the impacts of delivery services – from consumer demands reshaping the last mile to what you need to implement zero-friction, last-mile deliveries.
You can read some quick findings below or download now to explore the complete set of insights, including:
- Must-have capabilities for last mile deliveries
- Where last mile delivery can go wrong
- The impact of failure vs. success in the last mile
- Growing opportunities to out-serve competitors
3 Quick Findings
Profit drain or driver?
If managed poorly, last-mile experiences can sabotage all the work and dollars retailers pour into swaying consumers to buy, eroding profits and souring shoppers’ relationship with the brand.
- 53% of shipping costs stem from last mile delivery
- 8% of first-time deliveries fail in the U.S.
- $17.20 is the average cost of a failed delivery to U.S. retailers
Looking ahead to the future of online retail
Consumer demands continue to reshape the last mile as we know it, making it vital for your business to stay ahead of the latest trends.
- 78% projected growth in last mile deliveries is projected through 2030
- 20.31% projected growth in same-day delivery demand in the U.S., 2021–2025
- 70% potential loss in profits in three years if last mile delivery is not optimized
Key features of last mile delivery software
If you’re looking for the right software to support your delivery operation, it’s crucial to know which features should be at the top of your priority list. Some popular options for streamlining the delivery process include:
- Real-time tracking & communication
- Automatic route optimization
- Data analytics & reporting