How Can Online Businesses Counter Last-mile Delivery Challenges?

06/08/2021

Importance of Product Delivery for both Online Sellers and Customers

For an online seller, it is not wise to ignore the importance of uninterrupted product deliveries. Consumers today have changed their buying behavior considerably. Many expect a seamless and faster delivery experience. Same-day and next-day deliveries aren’t just a value-added service anymore. They have become the new normal.

According to a global customer study by PWC, 50% of consumers want online businesses to offer a same-day delivery. In fact, 41% of those surveyed online are willing to pay more for same-day deliveries. Apparently, a faster delivery process can serve as one of the facilitator of a successful online business.

Another survey found that 77% of online shoppers abandon a purchase due to poor or inflexible shipping options. In fact, 58% of survey respondents cited negative delivery experience as one of the main reasons why they stopped shopping with a particular seller. Poor delivery experience may also lead to bad customer reviews, which have an impact on business’ reputation. One’s product delivery process has the potential to either build or destroy your brand image.

For an online seller, improving the delivery experience can mean more buyers. Estimates suggest that the last-mile delivery process accounts for about 53% of your total product shipping costs. You can do this by improving your last-mile delivery process. Although it may prove expensive initially, however, improving your last-mile delivery can potentially win customers in the long-run.

What is Last-Mile Delivery?

Last-mile delivery can be a game changer when you sell online. It is the final step of the delivery process when orders are shipped from your warehouse hub to the customer’s door. In simpler terms, this process occurs when a package is ‘Out for Delivery’. It is the final delivery experience that the buyer has in the entire online delivery process.

Since last-mile delivery offers the customer the only face-time with the seller, this interaction being positive is important. This first interaction can also be the driving force for future purchases. Therefore, it is advisable to ensure that the last-mile delivery process is executed well.

This can be done by delivering your products faster and by cutting costs. But this can be difficult. Here are some challenges you can face in your last-mile delivery process.

1. Higher Costs

Once a customer places an order, they would expect you to fulfill that order in the shortest time. Most customers prefer free deliveries. In such cases, you might end up shouldering a major portion of the total shipping cost. Additionally, missed delivery schedules and incorrect deliveries can also increase your shipping costs.

2. Delivery Bottlenecks

Delivering goods in record time can also be difficult logistically. Local factors like bad traffic conditions or confusing routes can be examples of such obstacles. The road and transport infrastructure in tier-2 and tier-3 cities may add to the problems compared to metropolitan cities like Mumbai and Delhi.

3. Consumer Discontent

Meeting customer satisfaction is important in online selling but it may not always be possible. Most customers want to be informed about the entire delivery process. But tracking each and every shipment can sometimes be difficult. Care needs to be taken that you dispatch the right order, to the right delivery location, in record time. If you fail to do this, you may risk receiving negative feedback from customers. This could also result in customers choosing another online seller.

How to Deal with Last-mile Delivery Challenges?

Although last-mile delivery challenges may be daunting initially, you can still stand a chance to win good customer reviews by overcoming the challenges mentioned. Here’s how.

1. Offering Real-time Status of Delivery:

To better customer experience, you can give them the ability to track their packages in real time. In fact, a global customer study by PWC showed that 54% of surveyed consumers look for a package-tracking feature when making a purchase decision. One of the ways you can do this is by using a real-time delivery tracking software that allows your customer service representative to connect with the delivery partner to get real-time status of the delivery route with the estimated delivery time. This can help improve customer satisfaction and possibly more orders in the longer run.

2. Getting a Proof of Delivery:

Proof of delivery is a document that ensures that the order has been delivered to the correct buyer. This document should have the signature of the customer or the person who has received the order. Proof of delivery completes the delivery process and shows where the shipment has been delivered. With real-time status of delivery and proof of delivery, you can better track that your products are being delivered to the correct customers and on time.

3. Managing Paperwork:

As an online seller, you likely maintain a record of all customer purchases and their delivery details. As your business grows, you might find yourself with thousands of pages of information. You need to store this data since it has billing or product-related information. You can choose to use an automated system to manage this paperwork, since it becomes relatively efficient.

4. Maintaining Privacy and Security:

Maintaining customer privacy is critical in ensuring a positive last-mile delivery experience and also to comply with applicable laws. Customer confidentiality may be compromised when printed materials of their personal information travels across the town with a delivery executive. It is advisable to train your delivery executive to protect your customer’s data. You may also use a secure digital system to manage this. With this, you can prevent any misuse of sensitive information. By prioritizing the safety of a customer’s personal information, you work towards building a foundation of long-term trust and loyalty.

Conclusion

Many online sellers have started offering a host of delivery options such as same-day delivery and next-day delivery to attract customers. Offering choice seems commonplace and important in an online business. Although a seamless last-mile delivery can seem like a challenge initially, you may counter those with the remedies highlighted above. By doing this, you may not just be meeting a customer’s delivery expectations and enjoying long-term profits but may also boost your brand value.

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