In the fast-paced world of e-commerce and online shopping, last mile delivery has become a critical aspect of the logistics industry. As customers increasingly expect quick and efficient delivery of their goods, companies are closely monitoring last mile delivery industry statistics to streamline operations and stay ahead of the competition. In this blog post, we will explore key trends and insights shaping the last mile delivery sector and how businesses can leverage this data to enhance their delivery services.
The Latest Last Mile Delivery Industry Statistics Explained
Last mile delivery costs account for 41% of supply chain costs.
This statistic indicates that a significant portion of total supply chain costs is attributed to last mile delivery expenses, specifically accounting for 41% of the overall cost. The last mile delivery stage is the final leg of the supply chain process, involving the transportation of goods from a distribution center to the end customer. The high percentage suggests that optimizing last mile delivery operations and reducing associated costs is crucial for improving overall supply chain efficiency and profitability. Companies may consider implementing strategies such as route optimization, leveraging technology solutions, and partnering with third-party logistics providers to streamline last mile delivery operations and potentially reduce the financial burden on the entire supply chain.
Consumers want free shipping options 9 times more than same-day shipping.
The statistic that consumers want free shipping options 9 times more than same-day shipping indicates a strong preference for cost-effective shipping methods over expedited delivery. This suggests that consumers prioritize saving money on shipping fees over receiving their purchases quickly. Free shipping is likely seen as a valuable incentive that can influence purchasing decisions, while same-day shipping may be less appealing due to its associated costs. Understanding this preference can help businesses tailor their shipping policies to better meet consumer demands and potentially increase sales by offering free shipping options as a competitive advantage.
Online shopping is projected to hit 15% of all retail worldwide by 2020, impacting last mile delivery demands.
This statistic indicates that online shopping is expected to make up 15% of all retail sales globally by the year 2020. This significant growth in online shopping is likely to have a substantial impact on the demands of last mile delivery services, which refer to the final leg of the delivery process from a distribution center to the end consumer’s location. As more consumers turn to online shopping, there will be a higher volume of packages requiring efficient and timely delivery to individual addresses, placing pressure on logistics companies to adapt to the changing demands of the e-commerce landscape and optimize their last mile delivery operations to meet customer expectations.
It’s estimated that 40% of total delivery cost is consumed by last mile delivery.
This statistic indicates that, on average, the last mile delivery segment accounts for a significant portion of the total cost of delivering goods to their final destination. Specifically, it suggests that 40% of the overall delivery expenses are attributed to the last mile delivery process, which involves transporting packages from a distribution center to the end customer’s location. This statistic highlights the importance of optimizing last mile logistics to enhance efficiency, reduce costs, and improve overall supply chain performance for businesses operating in the delivery industry. By focusing on streamlining last mile operations, companies can potentially lower costs and enhance customer satisfaction by ensuring timely and reliable deliveries.
The global last mile delivery market was valued at $30.2 billion in 2018.
This statistic indicates that the total market value of last mile delivery services worldwide was $30.2 billion in the year 2018. Last mile delivery refers to the final stage of the delivery process where goods are moved from a transportation hub to the final destination, typically a residential or commercial address. This market value represents the revenue generated by companies providing last mile delivery services across various industries such as e-commerce, food delivery, and parcel shipping. The significant market size highlights the growing demand for convenient and efficient delivery services globally, driven by factors such as the rise of online shopping and changing consumer preferences.
The last mile delivery market is forecast to grow to $55.2 billion by 2025.
This statistic indicates the projected growth of the last mile delivery market, which refers to the transportation of goods from a distribution center to the final destination (such as a customer’s home or a retail store). The forecast suggests that by 2025, the last mile delivery market is expected to reach a value of $55.2 billion, signifying a significant increase in market size. This growth can be attributed to various factors such as the surge in e-commerce activity, the rise of same-day and next-day delivery services, and the increasing demand for convenient and efficient delivery options by consumers. As businesses strive to meet the evolving needs of customers in the competitive retail landscape, investments in last mile delivery services are anticipated to continue expanding to capitalize on this growing market opportunity.
Asia Pacific region is predicted to emerge as the fastest growing last mile delivery market with 16.7% CAGR by 2025.
This statistic indicates that the last-mile delivery market in the Asia Pacific region is forecasted to experience rapid growth with a compound annual growth rate (CAGR) of 16.7% by the year 2025. The term “last-mile delivery” refers to the final step in the delivery process, typically from a distribution center to the end-consumer. The projected CAGR highlights the expected pace at which this market segment is set to expand over the next few years in the Asia Pacific region, suggesting a significant increase in demand for efficient and timely delivery services. Factors such as increasing e-commerce activities, urbanization, and changing consumer preferences towards online shopping are likely contributing to this anticipated growth trend.
By 2022, 90% of brands will offer some form of free delivery.
The statistic “By 2022, 90% of brands will offer some form of free delivery” indicates the widespread adoption of free delivery services in the business landscape. This trend suggests that an increasing number of brands across various industries are recognizing the importance of providing free shipping options to attract and retain customers. Offering free delivery has become a competitive necessity in the retail and e-commerce sectors, as consumers have come to expect added convenience and cost savings in their online shopping experiences. This statistic reflects a strategic shift among brands to prioritize customer satisfaction and remain competitive in a crowded marketplace where fast and affordable shipping options can significantly influence purchasing decisions.
61% of consumers expect their deliveries within 3-5 days.
The statistic that 61% of consumers expect their deliveries within 3-5 days indicates a prevailing consumer sentiment and expectation regarding the timeliness of product deliveries. This suggests that a majority of consumers place importance on quick and efficient shipping services when making purchases, potentially influenced by the rise of e-commerce and the convenience of online shopping. Businesses operating within the retail industry should take note of this statistic to align their shipping and logistics strategies with consumer expectations, in order to meet customer demands and enhance overall satisfaction levels. Additionally, ensuring prompt deliveries within the specified time frame could potentially serve as a competitive advantage in attracting and retaining customers in a rapidly evolving marketplace.
48% of customers say they’d avoid repeat purchases due to a disappointing delivery experience.
The statistic states that 48% of customers are likely to avoid making repeat purchases if they have a negative experience with the delivery process. This suggests that a significant portion of customers place importance on the delivery experience when considering whether to continue buying from a company. Factors such as late deliveries, damaged packages, or poor communication during the delivery process could contribute to a negative impression among customers, leading them to seek alternative options in the future. As a result, businesses should prioritize optimizing their delivery services to meet customer expectations and maintain customer loyalty.
Up to 28% of a product’s total cost can come from attempting to deliver it to remote, hard-to-reach locations.
This statistic highlights the considerable impact that delivering products to remote or hard-to-reach locations can have on the total cost of the product. Up to 28% of the total cost being attributed to the delivery to such locations indicates that logistical challenges, transportation costs, and additional resources required for these deliveries significantly contribute to the overall expenses. This statistic underscores the importance for businesses to carefully consider the cost implications of delivering products to remote areas and factor these expenses into their pricing strategies and logistical planning to optimize efficiency and profitability.
58.6% of consumers want a definitive delivery date on all their last mile shipping.
The statistic, “58.6% of consumers want a definitive delivery date on all their last mile shipping,” suggests that a significant majority of consumers value knowing the exact date of delivery for their online purchases. This indicates a strong preference for transparency and reliability in the shipping process, which can help manage expectations and enhance the overall shopping experience. By providing clear delivery dates for last-mile shipping, companies can potentially improve customer satisfaction, reduce anxiety about the arrival of their orders, and build trust and loyalty with their customer base.
Approximately 1.35 billion packages are shipped yearly in the United States.
The statistic that approximately 1.35 billion packages are shipped yearly in the United States highlights the vast scale of the shipping industry within the country. This statistic reflects the high volume of goods and products that are transported across the country for various purposes, including e-commerce, retail, business-to-business transactions, and personal shipments. The significant number of packages being shipped annually also signifies the reliance on logistics and transportation services to facilitate the movement of goods efficiently and effectively. Additionally, this statistic points to the overall economic activity and consumption patterns in the United States, illustrating the widespread need for shipping services to support trade and commerce.
73% of customers want to receive items in eco-friendly packaging.
The statistic that 73% of customers want to receive items in eco-friendly packaging indicates a strong preference among consumers for environmentally conscious practices in the delivery of goods. This data suggests that a significant majority of customers value sustainability in packaging materials, potentially reflecting a growing concern for environmental issues and a desire to support businesses that prioritize eco-friendly practices. Companies may benefit from aligning their packaging strategies with this consumer preference to appeal to a large segment of the market, enhance their brand reputation, and potentially improve customer loyalty. By adapting to the demand for eco-friendly packaging, businesses can demonstrate their commitment to sustainability and meet the evolving expectations of environmentally conscious consumers.
By 2023, autonomous vehicles and drones will deliver 90% of all parcels.
The statistic that by 2023, autonomous vehicles and drones will deliver 90% of all parcels indicates a significant shift towards automation in the delivery industry. This projection suggests that the use of autonomous technologies such as self-driving cars and unmanned aerial vehicles will become increasingly prevalent in fulfilling parcel deliveries, potentially revolutionizing the way goods are transported. This trend likely stems from advancements in technology, improved efficiency, and cost-effectiveness of autonomous delivery methods. The statistic underscores the growing influence of automation in streamlining logistics operations and meeting the evolving demands of e-commerce and supply chain industries.
74% of consumers view the last mile delivery as the most important stage in the process.
The statistic indicating that 74% of consumers view the last mile delivery as the most important stage in the process highlights the critical significance of the final step in the supply chain. This statistic underscores the growing emphasis on efficient and reliable delivery services, particularly in the e-commerce sector, where the last mile represents the final interaction point between businesses and consumers. Given the increasing expectations for convenience and speed in delivery, the last mile has emerged as a pivotal factor influencing customer satisfaction and brand perception. Companies that prioritize optimizing their last mile delivery operations are likely to not only meet but exceed consumer expectations, thus gaining a competitive edge in the market.
50% of consumers will choose a slower transit time for green delivery options.
This statistic indicates that half of the consumers surveyed are willing to opt for a slower transit time when it comes to delivery services if it means choosing a more environmentally friendly option, also known as ‘green delivery’. This preference suggests that a significant portion of consumers value sustainability in their purchasing decisions and are willing to prioritize environmental considerations over speed of delivery. By choosing green delivery options, consumers are demonstrating their commitment to reducing their carbon footprint and supporting companies that are environmentally conscious in their supply chain logistics. This statistic highlights the growing importance of sustainability in consumer behavior and the need for businesses to offer eco-friendly delivery alternatives to meet this demand.
References
0. – https://www.www.inboundlogistics.com
1. – https://www.www.workflowmax.com
2. – https://www.www.conveyco.com
3. – https://www.www.dhl.com
4. – https://www.www.digitalcommerce360.com
5. – https://www.today.yougov.com
6. – https://www.www.bringg.com
7. – https://www.www.mckinsey.com
8. – https://www.www.businessinsider.com
9. – https://www.www.grandviewresearch.com
10. – https://www.www.researchandmarkets.com
11. – https://www.www.globenewswire.com
12. – https://www.www.idtechex.com
13. – https://www.www.skyfii.com
14. – https://www.www.supplychaindive.com
15. – https://www.www.ecommerce-nation.com
16. – https://www.www.marketsandmarkets.com
