During the pandemic when everyone was staying inside, the last-mile delivery market exploded in size. And as soon as the customer’s expectations changed, delivery patterns changed as well.
According to market statistics, it will be worth 108.1 billion dollars in 2020. However, growth has been rapid since then, with the market expected to reach $200 billion by 2027.
Surprisingly, despite the market’s growth, the rapid change in statistics shattered the entire market. Only those businesses that were able to adapt to changing trends were able to survive. It is important to stay current with changing market trends and to keep an eye on the numbers.
Here are all of the most recent local delivery statistics to keep in mind as you run your delivery business in 2022.
Table of Contents
- Today’s local delivery market
- The size of the local delivery market
- Exceeding customer expectations
- The costs of local delivery
- The importance of these local delivery statistics
- Frequently Asked Questions (FAQs)
- EasyRoutes gives you local delivery superpowers for Shopify
Today’s local delivery market
The global market for last-mile delivery is enormous. It is divided into segments based on the following criteria:
- The service that was provided
- The vehicle that was used
- Time and methods of delivery
- The location of the delivery
The market for last-mile delivery is rapidly expanding. A drastic shift in market trends and customer expectations has resulted in a drastic shift in market trends, making last-mile logistics difficult to cope with.
Here are four major statistics that any company providing a last-mile delivery service should consider.
The size of the local delivery market
The local delivery market has grown dramatically in recent years. This rapid expansion has a significant impact on last-mile service upgrades.
In North America, for example, the last-mile delivery market was valued at 31.25 billion dollars in 2018. From 31.25 to 51 billion dollars in the United States, there has been a tremendous increase until 2022.
The global parcel and express volumes have undergone a significant change. From 4.3 percent in 2014 to 15.3 percent in 2022, the growth rate has increased significantly. The logistics industry is experiencing tremendous growth.
The following are some of the trends that have contributed to this growth rate:
The buyer’s behavior was influenced by a reduction in shipping costs.
The e-commerce world went crazy, from low shipping costs to providing free shipping.
Shipping is an expensive part of the supply chain, but it was made free to meet customer expectations.
Same-day delivery became popular as the demand for faster delivery grew.
Businesses received more leads as a result of the quick and free delivery.
As a result, a number of factors influenced last-mile logistics, resulting in a shift in market trends and rapid market expansion.
Exceeding customer expectations
Consumers have shown a significant shift towards the online market, which has fueled the growth of the e-commerce industry. The e-commerce industry, on the other hand, has taken no shortcuts to ensure customer satisfaction.
The business-to-consumer track has been upgraded on a regular basis. From the standard delivery period of one week to 10-minute deliveries, a lot has changed. As a result, the last-mile delivery market has progressed and delivery companies have prioritized meeting consumer demands.
According to a 2017 survey conducted in North America and Europe, 73 percent of e-commerce logistics companies prioritize better communication with their last-mile customers in order to improve their experience.
As a result, the last-mile delivery industry has undergone a significant transformation, and it is now investing in upgrades to ensure that it remains ahead of the curve in order to meet consumer demands more efficiently.
Consumer satisfaction has become increasingly important as a result of the following trends:
- Demand for faster delivery services is increasing.
- Residents of urban areas’ lifestyles have radically changed.
- To ensure that positive reviews are shared from customer to customer, services must be improved.
- Increase in total online retail sales.
As a result, maintaining the company’s reputation by ensuring customer satisfaction became an important aspect of leading the last-mile market.
The costs of local delivery
Because it takes a lot of time and money, last-mile delivery is a big deal in the logistics industry.
The costs of providing excellent last-mile delivery services are prohibitively expensive. As a result, managing the final mile logistics is critical. The global logistics market was worth $8.6 trillion in 2020.
The numbers, as well as the challenges, are expected to rise.
Labour costs, fuel costs, cargo carrier costs, and driver salaries are all included in last-mile delivery costs. A failed delivery can add to the cost of an already costly process.
Last-mile costs have risen as a result of the following trends:
- A shift away from in-store shopping and toward online ordering
- Customer feedback became more valuable, prompting logistics to improve their services
- Major corporations devised offers to entice their customers, making it difficult for small logistics to compete
- A significant increase in online sales resulted in a significant improvement in logistics provider services, driving costs up
- Increasing costs were difficult to manage due to changing market dynamics
- Customers expect orders to be delivered quickly, sometimes same-day even.
As a result, reducing last-mile costs has become a more pressing concern.
The importance of these local delivery statistics
Knowing the statistics of the last-mile market is useful, but understanding how to apply them to make necessary changes is even better.
Statistics can help you compare your company’s performance to the growth of the market to see if you’re making real money. Statistics can also assist logistics in staying current with market trends.
The following are some key points that explain the significance of last-mile delivery statistics:
Last-mile logistics professionals never make major decisions based on market hype. They delve deeper into the market in order to devise more effective strategies. Because thorough market research can assist you in making informed decisions and determining which trends have the potential to last longer and generate profits.
Market trends are sometimes intended to provide customers with more savings than logistics. As a result, you must figure out what works best for you.
Upgrade your local delivery software to address future last-mile delivery issues
The data presented above clearly shows that the global last-mile delivery market will grow dramatically. As a result, upgrading your last-mile delivery services is critical.
One can begin by replacing traditional management methods with the most recent technological advancements in the field. Why are your management methods still traditional now that your company has gone online?
The management of last-mile delivery costs has been a hot topic in last-mile logistics. Do you know what criteria were used to determine whether or not the final mile logistics were successful?
Here’s how upgrading to delivery management software can make last-mile logistics much easier to manage:
- Keeps track of your business’s market expansion.
- Last-mile delivery challenges can be addressed in a cost-effective manner.
- Keeps track of your drivers.
- Keeps you up to date on the latest trends in the last-mile delivery market.
- Deliveries can be scheduled and rescheduled.
- Reduces costs by recommending cost-effective solutions to last-mile challenges.
- Can reduce the time-consuming management process’ workload (it reduces hours of work down to seconds)
- With effective measures, it is possible to easily address the most difficult challenges
As a result, using last-mile delivery management software can make a big difference to your delivery business.
Frequently Asked Questions (FAQs)
What are some of the issues with local delivery?
The following are the major issues that make last-mile delivery difficult to achieve:
- Costs of last-mile delivery
- Deliveries that go wrong
- Lack of transparency for customers
- Incorrect routing
- Keeping up with consumer demands
- Congestion in the streets
What is the importance of local delivery?
Local delivery logistics refers to the final delivery process from the distribution centre or facility to the end-user. It enables shippers to deliver more products to customers in a more timely and cost-effective manner.
What are the reasons for the inefficiency of last-mile delivery?
Last-mile delivery is inefficient because of issues such as route planning inefficiency, a lack of real-time visibility, and the inability to deliver same-day delivery.
Is the business of last-mile delivery profitable?
Yes, the last-mile delivery business is profitable, as rising consumer demand has increased demand. It only requires proper management to be effective.
What are the difficulties in putting local delivery in place?
The following are some of the obstacles to implementing local delivery in your business:
- Management of the supply chain
- Management of the delivery fleet
- Route optimization and planning
- Deliveries that go wrong
- Last-mile delivery can have a high cost
What can I do to make my last-mile delivery better?
Checking the delivery route and delivery drivers can help improve last-mile delivery. A strategic approach to providing drivers with a useful add-on via optimization software can help to improve the process. Good delivery management software like EasyRoutes by Roundtrip can also be used to enhance the customer experience.
EasyRoutes gives you local delivery superpowers for Shopify
Roundtrip’s EasyRoutes is a robust route planning application. It is the best delivery management solution for delivery businesses on Shopify who want to plan and optimize their routes efficiently.
EasyRoutes can optimize routes for you automatically, taking into account service time, time windows and avoiding ferries, tolls, and highways.
Companies can focus on their core business operations and reduce manual planning and scheduling hours with EasyRoutes, while the app takes care of the rest.
You can use EasyRoutes for free, or try any of the paid plans out free for 14 days!