Why last mile delivery is a key challenge for e-commerce businesses ?

In online retail, last-mile delivery represents a critical stage of the logistics chain for e-commerce businesses. It is the moment when shipments leave the distribution center to be delivered to customers. This final stage of transportation accounts for a significant portion of costs while playing a decisive role in customer satisfaction.

Often seen as a simple logistical operation, last-mile logistics is actually a key challenge for e-commerce businesses. It directly affects service quality, delivery management, and the overall perception of the company by consumers.

  1. The challenges of last-miledelivery

Last-mile delivery is a complex logistical step for e-commerce companies. It combines transport, management, and performance constraints while having to meet growing customer expectations. This final stage presents several major challenges.

  • High costs 

Last-mile delivery costs can represent up to 50% of total transportation expenses. The increase of single-unit deliveries, route organization, and urban density significantly raise costs. Poor logistics optimization quickly results in higher delivery expenses.

  • Logistical complexity 

Last-mile logistics requires rigorous flow management and efficient route planning. Without appropriate solutions, companies face difficulties organizing deliveries, leading to delays, unnecessary mileage, and reduced service quality.

  • Customer satisfaction 

For customers, last-mile delivery is often the main point of contact with the e-commerce business. Unclear deadlines, lack of flexibility, or poor communication can degrade customer satisfaction and the overall shopping experience.

  • Environmental impact 

Last-mile transportation has a significant environmental impact, particularly through greenhouse gas emissions from delivery vehicles. This challenge pushes companies to rethink logistics practices to reduce their carbon footprint.

  1. Solutions tooptimizelast-mile delivery 

To tackle last-mile challenges, businesses have several solutions to optimize logistics and improve delivery performance.

  • Route and tour optimization 

Optimizing routes and tours helps reduce distance traveled, improve transport efficiency, and control delivery costs. Last-mile logistics management tools facilitate delivery organization and adaptation to on-the-ground constraints.

  • Use of suitable vehicles 

Using electric vehicles or alternative transport solutions helps reduce environmental impact. These vehicles are particularly suited for urban deliveries and help limit greenhouse gas emissions. 

  • Micro-distribution centers, pickup points, and lockers 

Micro-distribution centers, pickup points, and automated lockers bring parcels closer to customers. This logistic setup helps optimize last-mile delivery, reduce transport costs, and streamline deliveries.

  • Returns management 

Managing returns is an integral part of the delivery process. A clear and efficient organization helps optimize logistics flows, limit additional costs, and improve customer satisfaction. 

  1. Strategic impact of last-miledeliveryfor e-commerce 

Last-mile delivery has a direct impact on several key e-commerce aspects: 

  • Customer satisfaction and loyalty 
  • Control over delivery and transportation costs 
  • Overall last-mile logistics performance 
  • Company image among consumers 

For e-commerce businesses, optimizing this stage allows for better delivery management, improved logistics efficiency, and enhanced competitiveness.  

Last-mile delivery is no longer just an operational step: it is a key challenge for e-commerce companies. Between high costs, transport constraints, logistical management challenges, customer expectations, and environmental impact, this final stage of the logistics chain requires adapted solutions.

By relying on route optimization, itinerary planning, electric vehicles, micro-distribution centers, and efficient returns management, companies can transform last-mile logistics into a true lever of performance and differentiation.

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