Last-mile delivery, also known as final-mile delivery, is the last part of a parcel’s journey. It’s the shortest stretch of the trip, but it’s also the most expensive and the most likely to go wrong.
In this article, we cover what makes last-mile delivery so difficult, what a great last-mile delivery service looks like and five ways you can deliver an exceptional experience.
What makes last-mile delivery so difficult?
Despite the short distance, the final mile eats up a large share of the delivery cost. By some estimates, it’s well over half.
But it’s not just the cost that retailers have to worry about. Several factors make it particularly difficult:
- Scaling is tough. While a line-haul lorry carries thousands of parcels between cities efficiently, last-mile carriers split that load into individual drops to scattered addresses, which is far less efficient per parcel.
- Failed deliveries are expensive. If customers aren’t in and carriers can’t leave parcels in a safe place, failed delivery attempts mean another costly journey and often an unhappy customer.
- Some deliveries are trickier than others. Both cities and rural areas can cause problems. Urban congestion, parking restrictions and high-rise buildings slow drivers down. Rural routes spread drops far apart, so a driver covers a lot of ground for few deliveries.
- Customer expectations continue to rise. Shoppers now want fast, tracked, flexible delivery as standard, and often for free. Meeting that without losing money piles pressure squarely on the final mile.
Cross-border final mile gets harder still. Local knowledge becomes essential as the best carrier and preferred delivery method vary by country. UK retailers shipping to Europe can't assume what works at home works abroad, which is why local final-mile partnerships matter so much for international delivery.
What are your last-mile delivery options?
Part of getting the final mile right is offering the delivery methods customers actually want — which increasingly means more than just dropping a parcel at the door.
- Home delivery is the traditional option. It's convenient when someone's in, but it's also where failed deliveries happen, so clear communication and safe-place options matter.
- Parcel lockers let customers collect from a secure, automated locker at a time that suits them. They're cheap, reliable and increasingly preferred in many markets because there's no missed-delivery problem.
- Pickup points (PUDOs) work similarly, using local shops or depots as collection points. They offer wide coverage without the cost of installing lockers everywhere.
- Click and collect lets customers pick up from your own store, blending online and offline.
Ideally, retailers should offer a choice of delivery options rather than forcing one method on everyone.
Doing so improves conversion and reduces failed deliveries, because customers select the option that fits their lives. The right mix varies by market, which is why local knowledge is so valuable.
Last-mile delivery tactics to reduce underdeliverables and improve the customer experience
The last mile is the part of the journey the customer sees and experiences. It shapes their impression of your brand more than any other stage, which is why it’s so important to get it right.
Here are five tactics you can use to deliver a standout experience.
Offer a choice of delivery options
Let customers choose from several delivery options, whether that’s home delivery, a locker, a pickup point or click and collect. People who choose how they receive a parcel are far less likely to miss it.
Work with multiple carriers
Being reliant on a single final-mile carrier can lead to expensive, slow deliveries. Ideally, you’ll be able to leverage a large carrier network and match each parcel to the carrier that performs best in its destination.
Don’t forget about returns
The final mile runs in reverse, too, so treat ecommerce returns as part of the same experience. A clear, simple return experience will keep customers coming back.
Validate addresses at checkout
An incorrect or incomplete address is one of the biggest causes of failed deliveries. It’s also completely avoidable. Incorporate address lookup and validation at checkout to catch the mistake while the customer's still on the page, not when the driver's already at the wrong door.
Be clear with customers
Show an accurate delivery date at checkout and stick to it. When customers know when their parcel's coming, they're more likely to be ready for it and less likely to chase you. At the same time, let them be clear with you by providing safe-place instructions or giving them the chance to reschedule.
How to track last-mile deliveries like a pro
Tracking matters most on the final mile because it's the leg the customer's actually waiting on. A good solution turns an anxious wait for customers into a calm one and a potential headache for retailers into a USP.
For customers, the goal should be to give every shopper a live tracking link and localised notifications at the moments that matter. By making those updates branded and in the customer's own language, you’ll deliver an experience that feels like part of your store rather than a hand-off to a stranger.
For retailers, you want eyes on every part of your delivery process. For example, our Horizon tracking platform delivers live parcel tracking at every stage, real-time heatmap insights into market activity and bespoke reporting tools. It’s all the tools and data you need to effortlessly scale delivery, optimise performance and exceed customer expectations.
Solve the last mile with Pro Carrier
Pro Carrier’s stress-free shipping solution for eCommerce businesses helps you reach customers faster, smarter, and more efficiently.
Our carrier-agnostic approach to shipping means we can pick the right carrier for each shipment based on destination, service level and cost. Rather than forcing every parcel down one route or through a single provider, we match it to the network that delivers best in that market.
Localised shipping notifications keep customers updated throughout the parcel’s journey. They know what’s happening and when their parcel’s out for delivery, so there are fewer WISMO calls and more happy customers.
Branded tracking and returns portals keep the experience yours from dispatch to door and back again. If customers need to make a return, our fully branded, Horizon-backed returns portal makes that easy, too. The result is a final mile that's reliable, cost-effective and on-brand, wherever your customers are.
Read our case studies to learn how retailers are shipping successfully with Pro Carrier or speak to an expert today to learn more about how we can help.