The Impact of Customer Demand on Last Mile Delivery: Key Factors that Change Last Mile Delivery
In today’s fast-paced, modern world, customers expect fast-paced, modern shipping. In other words, in an Amazon-style world, your e-commerce customers undoubtedly expect shipping that meets their deadlines. Further, these deadlines — these needs your customers have — are changing and advancing every day.
Undoubtedly, it can be hard to keep up. That being said, if you want to satisfy customers, meet shipping demands, and — of course — stay one step ahead of your competition, there’s huge value in continuously learning and re-learning the ever-changing logistics of last-mile delivery demands.
One of the best ways to do all of those things is to consistently understand your user and consumer expectations. That in part, is going to mean that you constantly must re-learn the specific factors that are affecting and re-defining last mile deliveries
Here are a few of those current factors to be familiar with!
Here’s the reality — customers want their products as fast as possible. That means e-commerce shop owners such as yourself must figure out the fastest fulfillment times possible. This need for faster fulfillment starts with you but ends with your shipping company, meaning every single point of the fulfillment process requires faster speeds. And, according to Cerasis, this is an ever-evolving and ever-changing process — shipments that used to require one hour to process are being forced into nearly three-minute intervals. And that won’t last long either. This fulfillment process constantly is being forced to speed up to satisfy customer demands.
Remember that need for faster fulfillment? The need for speed is relevant, too. Not too long ago (maybe a decade or so), people were more than satisfied with next-day delivery. Now, though, companies increasingly are offering same-day delivery — not only does this push the company offering this bonus to spin their wheels even harder to keep up with their customer demands, but it also is forcing other companies to compete and attempt to keep up the pace.
Which makes sense, right? Consumers are willing to shell out extra funds for a speedier delivery. According to McKinsey & Company, consumers are willing to pay a premium of up to 30 percent more for the luxury of same-day delivery.
Shippers Turning to Smart Tech for Tracking
It’s not just speed affecting customers’ demands, though. It’s the proliferation of the Internet of Things (IoT) smart technology that’s able to track shipments in real time — providing customers with a real-time report of where their items are, what delays they might face, and when they’ll be arriving. In fact, even SMS and Google notifications now are pushed out to customers so they can be kept consistently in the loop regarding the location and status of their deliverables.
This use of smart technology — which, as would be expected in an ever-evolving, technological society — truly is driving the way that last-mile delivery is growing and affecting how last-mile delivery services (such as Fetchr!) are operating.
Growth of Robotic Delivery
As we continue to evolve technologically, the proliferation of robotic delivery will be a huge factor in determining the way last-mile delivery companies proceed. Retailers consistently are seeing the benefit of using autonomous vehicles and other AI to solve their last mile delivery problems.
Sure, this might sound like it’s a distant, futuristic idea — but it’s not. This is something that’s actually happening in our modern-day society. For example, Kroger — one of the largest US supermarket chains — actually is partnering with an AI vehicle startup company (called Nuro) to help deliver groceries short distances — in essence, they’re seeing this solve a myriad of last-mile delivery issues.
Of course, you’ve heard of drone technology — but did you know it’s a driving factor in the way last-mile delivery companies are operating? The use of drones is actually one of the biggest innovations in this type of service.
For a lot of reasons, but mostly, because drones are more convenient. Think about it. They can fly, for starters, eliminating obstacles that would be hard to drive through (or over), they’re environmentally friendly (more so than planes or delivery vehicles), and they’re faster, too!
The companies that are consistently re-evaluating the customer needs and adapting technology are the types of last-mile delivery services that e-commerce owners should work with. Not only can they offer a large variety of visitor options, they’re also able to boost their quality of service. At Fetchr, we believe in staying-up-to-date on the latest trends and most useful technologies. Check out our next article, the 9 Trends in Last Mile, to take a peek at the kind of research we look for when optimizing our last-mile delivery services.
We are Fetchr; a company specialized in e-fulfillment. We help e-commerce entrepreneurs grow their business in the Middle East. Let’s make it happen! One box at a time. Learn more here.
This blog is intended for informational purposes only, and should not be considered business or legal advice. MENA 360 DWC-LLC (Fetchr) will not be held liable for the use, non-use or misapplication of this information, lost profits, personal or business interruption, or any other loss.