According to a recent eMarketer report, global online retail sales will reach $1.915 trillion this year and rise to $4.058 trillion in 2020. With the increasing trend in online shopping, e-commerce companies are in a dead heat to find ways to drive growth to their businesses, through omnichannel marketing, by offering loyalty and rewards programs, online-only discounts, sold online only products, and other incentives to enhance the customer experience. When potential customers can just click on another e-commerce site to buy the same products, e-commerce retailers are finding faster and faster delivery times one of the main drivers of customer retention.
Last mile delivery
Defined as the movement of goods from a transportation hub to a final destination, usually personal residences, last mile delivery focuses on how to get products to the end-user ASAP. Because of services such as Amazon Prime’s free two and now one-day delivery services, consumers have come to expect online orders to arrive even faster than ever before.
Last mile delivery logistics - a growing area of interest
Last mile delivery logistics have become, for e-commerce companies, like 3PL providers have in recent years, an emerging area of interest due to a growing demand for fully integrated omnichannel sales. Fast, reliable delivery can differentiate your company from others. That’s why this focus on last mile delivery is causing e-commerce vendors to reevaluate their transportation networks and adjust their shipping logistics to meet their customers’ needs. Customer retention and building brand loyalty demand exceptional service in all aspects of the fulfillment process.
Increased sales mean retailers are looking for alternative transportation avenues
Due to the expected increase in online sales, e-business owners need to prepare for traffic fluctuations caused by the surge in online sales, across a variety of goods including health, fitness, beauty, apparel, entertainment, food, electronics, and more. Because traditional carrier methods, such as UPS, FedEx, and USPS might not be able to keep up with the pace in some areas, retailers are beginning to explore alternatives to satisfy their last mile delivery needs. To accommodate faster shipping times, the changing nature of regulations and infrastructure limitations, retailers and their transportation partners are exploring alternative delivery options, including:
- Click-to-collect locations
- Local regional careers
- Private contractors
One company in Australia aims to deliver products, such as medical supplies, food, and other products via flying robots. Another enterprise in Germany is working to provide the first world-wide platform for private and business customers looking to find, book, and pay couriers plus track deliveries online in real-time. In addition to fast last mile delivery, the company plans to offer a most environmentally friendly courier option to its offerings. Entirely web-based, this technology marks a radical departure from the decentralized structures typical in current courier services. The click to collect option is growing as a way to get products to customers faster, in an online/brick and mortar hybrid solution. Some retailers are looking at the potential for customers picking up orders at gas stations, convenience stores, and other locations that don’t involve waiting at big box stores for customer service. Amazon is partnering with Uber, the ride-sharing company, to utilize private contractors to delivery products.
3PL providers offering transportation services
Some 3PL providers, such as Phase V Fulfillment Company, offer transportation services and freight shipping to facilitate their clients’ last mile delivery needs. Partnering with the right 3PL provider for your fulfillment operations and inventory management functions helps facilitate last mile delivery success. Centralizing all of your orders in one location streamlines your onboarding, packaging, and shipping processes, allowing you to focus on your core business.
At Phase V, we are committed to helping you grow your business. We partner with you to find out about your business and work to save you money by customizing a fulfillment plan that fits your needs. By providing transportation services, Phase V can ensure your orders get to their destinations on time. With your information already in our system, your orders can move seamlessly to their intended destinations, satisfying your customers and helping you grow your business.
Contact Phase V to learn more about our last mile delivery success!