Why is Last-Mile delivery so important? Well, to start with, it refers to the final transportation of goods from the fulfillment center or warehouse to the final destination (the customer). Last-mile delivery is the face of any business, as per the customer’s perspective.
The Indian e-commerce industry has come a long way over a few decades. Today, this sector has its significant share of boosting the national economy remarkably through its output and employment. It is believed that in the upcoming years, the industry will witness immense growth.
However, in a diverse country like India, last-mile delivery is a significant issue for businesses like e-commerce, where they require delivery from a warehouse to customers. Many innovations like cash on delivery, easy returns, and no-cost EMI have become prevalent, but some challenges persist.
When a buyer orders a product from a remote region, it becomes hard for the business to maintain the same efficiency and speed of delivery as in urban areas. However, to overcome this problem, the companies have come up with solutions like self pick-up from delivery centers. However, for expensive products, or for the products that require assembly, this option is not feasible. Furthermore, there are also high chances of miscommunication in rural areas, which can result in more order cancelation. Due to the lack of proper communication, the product could not reach its destination at the promised time, and hence, the chances of return or cancelation of orders increases.
So, let’s understand how to overcome these challenges.
How to Overcome Last-Mile Delivery Challenges?
As per many reports, last-mile delivery contributes a significant 30% of the total cost of shipments in the e-commerce sector. The factors, like poor infrastructure, incorrect marking, long journeys, etc. also add to the last-mile delivery troubles. These factors can be more troublesome in the cases of single package deliveries, where a tremendous amount of cost and fuel is involved in one delivery itself. The risk multi folds when the product to be delivered falls in the category of fragile, electronics, or large items.
These days customer’s delivery expectations have also increased, and they expect to see real-time tracking of shipments, consistent updates, proper communication with the delivery personnel, and receiving the package as per their convenience. Due to this, many e-commerce companies face an uphill struggle.
If we talk about the buyer’s perspective, last-mile delivery is one of the most crucial aspects of every business. Therefore, the e-commerce industry is always exploring innovative solutions to avoid complications and delays in its delivery system. Let’s have a look at a few ways that can help you:
Communication is one means which can help in getting the products delivered on time. While constant-communication has become a regular trend these days, e-commerce companies can further streamline the process.
Although it can prove to be an expensive idea, e-commerce companies should expand delivery centers close to the regions where a bulk of orders arise. It will not only speed up the delivery process but will also offer pick-up facilities for consumers.
E-commerce companies should integrate machine learning and AI-based solutions for route navigation, driver allotment, etc.
During festive seasons, most of the e-commerce setups open their annual sales. And, as the buyers are always at a lookout for good deals, the purchase during these seasons increases. Hence, every e-commerce company should actively ramp up delivery personnel and vehicles during such times.
The success of e-commerce businesses depends on delivering orders to customers at the right time. Without achieving this, no sale or discount will be successful. In-effective last-mile deliveries can lead to accumulation of stock and cause loss of funds. The e-commerce industry must focus on resolving this problem, and we believe these simple tips mentioned above can help you manage your troubles related to last-mile delivery