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Ecommerce Shipping: Strategies, Solutions, Costs and Best Practice
01 Nov, 2024
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28 Min Read
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Introduction
When it comes to improving customers’ shopping experience, you need to pay your utmost attention to delivery — more specifically, to last-mile delivery. Around 74% of customers consider this a key factor in their overall customer experience.
As this final logistics segment comes with its own set of challenges, last mile delivery companies aim to help you overcome these challenges with their advanced tools and delivery services. That’s why last-mile delivery companies have become a crucial part of the modern eCommerce ecosystem.
Now, with hundreds of last-mile delivery companies available on the market, which one should you opt for? In this post, we’ve rounded up a comprehensive list of the best last mile delivery companies with the key features. We’ve also provided a few tips to help you choose the right one among them.
What Is Last Mile Delivery Service?
Last-mile delivery (also known as last mile logistics or final mile delivery) is the last leg of the supply chain journey, where goods are delivered from the last distribution hub to their ultimate destinations — these may be customers’ doorsteps or parcel lockers or retail stores.
Since last-mile delivery is the stage where customers finally receive the items in their hands, it’s often considered the most critical part of the entire logistics process. Any hiccups in this journey (be it delayed shipments, failed deliveries, or inaccurate delivery) can significantly affect customer satisfaction.
Hence, businesses adopt multiple strategic approaches like relying on efficient last-mile delivery companies to manage this last stage of the journey and ensure timely delivery of each shipment.
According to a study done by Capgemini (2019), for the average American small business, its net profit could drop by as much as 26% in the next three years if they don’t offer last-mile delivery services.
7 Key Steps in the Last Mile Delivery Process
Most of the time, last mile delivery is considered a single process. In reality, it involves various steps so that packages reach the end consumers on time without any issues. These steps generally include:
15 Best Last Mile Delivery Service Companies
To navigate the last-mile challenges, businesses usually opt for logistics providers specialized in last mile delivery services. Here, we’ve rounded up a list of the top 15 last mile delivery companies from different regions globally.
Let’s get into them one by one.
1. UPS
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Picture: UPS
Headquartered in Georgia, UPS (United Parcel Service) is a multinational shipping and supply chain management company. UPS was founded in 1907 and with constant upgradation in its services, it has secured a position among the world’s largest shipping carriers. As of now, UPS has expanded its reach across 200+ countries worldwide, including Korea, Iran, Syria, Germany and more.
UPS has the capability to efficiently handle end-to-end logistics operations. It offers various delivery services like two-day delivery, next-day delivery, and even weekend delivery options. Especially to improve the last mile delivery for businesses, it has come up with solutions such as UPS SurePost, UPS My Choice, route optimization, and so on. UPS has already offered a shipping rate calculator that will help you calculate shipping rates according to your requirements; however, its flat-rate shipping charges start from $10.85 (for a small box).
2. FedEx
Picture: FedEx
FedEx doesn’t need an introduction. Founded in 1971, it’s one of the leading transportation and supply chain solutions providers available in the market. It has launched a variety of delivery options under its service package, so businesses can manage their logistics operations as per their personal requirements. These mostly include same-day delivery, overnight delivery, two-day delivery, standard delivery, etc.
FedEx can also handle bulk shipments that weigh over 150 lbs. To enhance the residential delivery experience, FedEx Express has tied up with FedEx Ground, which further improves the day-definite delivery. Furthermore, it’s efficient in dangerous goods shipping and has offered a bunch of tools & tech systems to improve last-mile delivery. FedEx’s flat-rate shipping costs for the 2-day delivery option start from $9.75.
3. DHL
Looking for a Germany-based logistics company that provides last-mile delivery solutions? DHL can be your best fit. With a host of on-demand express delivery options and technology solutions like automated route planning, vision-picking technology, and autonomous vehicles, it has established itself as one of the best last mile delivery companies.
At the same time, it offers a holistic visibility of the entire last-mile delivery process, so business owners can keep track of each shipment’s whereabouts. This, in turn, helps them solve customers’ shipment-related queries and encourage after-sale opportunities for their businesses. DHL gets easily integrated with different online marketplaces to help businesses manage everything in a single place.
4. OnFleet
With a track record of 200M+ successful deliveries, OnFleet is another top-notch logistics provider especially launched to optimize last-mile delivery operations. From delivery route optimization, and advanced search and filtering solutions to auto-assigning orders to customers and collecting POD, it will help you manage everything without much hassles.
Especially for driver management, it has come up with a dedicated application. You can seamlessly communicate with drivers, track their locations, and improve the whole driver management process. Alongside these, it accelerates customer satisfaction with almost accurate ETAs, proactive shipment updates, and real-time driver tracking.
5. SF Express
Picture: SF Express
Founded in 1993, SF Express is a China-based logistics service provider that has garnered the rank of the fourth largest carrier provider across the globe. It has diversified its services into seven segments. These include time-definite express, economy express, intra-city on-demand delivery, international shipping services, and more.
Moreover, SF Express has incorporated cold chain delivery solutions under its services, so you can effortlessly transport time-definite goods to your end consumers. Besides providing a range of shipping services, it offers other value-added solutions like shipment protection, SF locker, distribution services, packaging, and more.
6. USPS
Picture: USPS
With the main goal of offering affordable and reliable delivery services in the US, USPS or The United States Postal Service came into existence. USPS has 33,641 post offices and contract locations in the U.S. alone. Plus, it has partnered with FedEx and DHL to provide delivery services to certain locations.
It offers a variety of mail delivery services, including priority mail express, priority mail, first-class mail, media mail, etc. USPS has a solid on-ground network which makes it possible for companies to deliver to rural areas. Through the Informed Visibility® Mail Tracking & Reporting application, you can monitor the real-time statuses of mail and packages. In fact, USPS is one of those rare last mile delivery companies that provide weekend delivery to improve customer experience.
7. ZTO Express
Next comes ZTO Express on the list of the top last mile delivery companies. Headquartered in China (Shanghai), this carrier company has established its reach across various regions, including America, Europe, and Asia. Not only that, ZTO has strategically built its warehouses worldwide to facilitate super-fast delivery.
If you go for ZTO’s local delivery service, it’ll take around 5-7 days to deliver a parcel. Furthermore, it has offered other express delivery solutions within China and international delivery services. ZTO Express’ delivery charge depends on different factors like destination, package weight & dimension.
8. Japan Post Holdings
Japan Post Holdings is a publicly traded conglomerate which is headquartered in Tokyo. It has a list of subsidiaries, including Japan Post Bank, Japan Post Insurance, Japan Post, and mor. It is engaged in various service segments and logistics is one of them.
Under the postal and logistics service segment, it handles mail, domestic, and international shipping. Besides, Japan Post is planning to establish partnerships with other carriers to improve last-mile delivery at every location worldwide. Through its postal services, you can send letters, postcards, parcels, letter packs, international mail, and other small items. Japan Post’s shipping charges for standard-sized letters start from 84 yen and go up to 210 yen as per mail weight.
9. Delhivery
If you’re an India-based business, we’re pretty sure you’ve heard about Delhivery. After all, it’s India’s largest fully integrated delivery provider. The best part is it’s available in every part of the country. As of now, it has successfully built its network across 18,600 pin codes and established over 2880 delivery centers across the country.
When it comes to logistics services, it offers a variety of solutions, including warehousing, part truckload, full truckload, cross-border, express delivery, and last-mile delivery. Delhivery has also adopted data intelligence and machine learning capabilities to ensure each shipment is delivered as fast and efficiently as possible.
10. Blue Dart
Next, we have Blue Dart. It’s another leading logistics, transportation & distribution company, which is serviceable across 55,400+ locations in India. Though Blue Dart can take care of the entire logistics journey, it’s gained particular recognition for its top-notch last-mile delivery solutions.
Bharat Dart, Blue Dart’s economical speed trucking service is perfect for delivering time-sensitive goods to customers. It also allows you to change the delivery information as per customers’ specifications. In addition, Blue Dart offers door-to-door delivery options, proof of delivery, and delivery notifications to optimize this last leg of the journey.
11. DB Schenker
Founded in 1872, DB Schenker is a German logistics & transportation company. It offers solutions such as air, land, and sea freight, contract logistics, global supply chain solutions, and so on. Because of this vast delivery service, it can cater to any business — from eCommerce to automobility.
One of the best parts about DB Schenker is its fast delivery. Within the metropolitan city, it even offers a same-day delivery service. A vast land transport network, parcel lockers, and detailed shipment tracking system made it one of the best choices as a last mile delivery company. DB Schenker’s delivery charges start from €8.75
12. DTDC Express
With a network of 14,000 physical customer access points across 14,000 pin codes, DTDC emerges as one of the most dominant carrier providers in the Indian logistics industry. Like other delivery companies mentioned above, DTDC also offers a range of shipping options, like express standard, express premium, integrated eCommerce logistics solutions, and more.
To ensure faster deliveries even in rural areas, DTDC has established micro-fulfillment hubs on the outskirts of cities. Plus, it has partnered with Skye Air Mobility to launch a drone delivery service in this country. No need to mention that it has integrated various advanced technologies and e-fulfillment solutions to simplify last-mile delivery.
13. Royal Mail
Picture: Royal Mail
For those of you who are looking for a last-mile delivery service provider in the UK, you can give a try to Royal Mail. Initially, it started its operations as a postal service provider. Now, with constant upgradation and the addition of premium logistics services, it has become one of the leading carrier companies.
24-48 hours delivery, same day delivery, special delivery, and next day delivery are some of the shipping options you’ll find under its parcel delivery solution. Royal Mail has a network of 10,000+ post offices and 1200 customer service points to make parcel delivery easier and more efficient. With Royal Mail, you can capture photos and obtain customer signatures after successful delivery.
14. Poste Italiane
Picture: Poste Italiane
Poste Italiane is an omnichannel service platform by nature. Along with logistics and mail & parcel delivery services, it also offers financial and insurance services, payment systems, etc. When it comes to logistics, Poste Italiane is Italy’s largest logistics company.
With Poste Italiane, businesses can offer mail and parcel delivery to customers. Plus, it has launched over 5 types of express delivery options to meet customers’ fast delivery demands. Not only that, to ensure fast delivery times, it has come up with a Logistic Control Room that will help you monitor the entire mail delivery process.
15. Aramex
Picture: Aramex
Last but not least, we have Aramex, a UAE-based logistics service provider. Aramex’s services are available across 65 countries worldwide. With Aramex, eCommerce businesses can offer same-day delivery service to their shoppers. In addition to this, it allows you and your customers to monitor the parcels in real time and lets shoppers schedule deliveries.
Moreover, Aramex pickup points, Aramex Experience+, and collection points are some of the value-added services Aramex offers to optimize last-mile delivery.
How Can ClickPost Help You Streamline the Last Mile?
A carrier company that provides last mile services is a must-have to ensure customer satisfaction. But, considering the challenges associated with this last stage of the journey, it’s better to have a specialized last-mile delivery software along with the carrier. Not only will it help you manage the last-mile carrier providers, but it will also take care of customers’ constantly changing delivery demands.
Here, ClickPost takes center stage. Take a quick look at how it can help you streamline your last mile delivery journey with its advanced functionalities:
How Does a Last Mile Delivery Company Work?
Think of a last-mile delivery company as the very last piece of a puzzle. Even if you have built a well-structured delivery strategy, it’ll remain incomplete without this last piece. Whereas a typical 3PL service provider handles the end-to-end logistics operations, a last-mile delivery company only takes care of the final leg of the journey from the beginning, i.e. order processing.
In essence, these last-mile delivery service companies have been specially designed to ensure that items reach their intended destination within the given time frame. To make it possible, they operate in a systematic manner:
Key Factors to Consider When Selecting a Last Mile Delivery Service Company
At this point, we’re assuming that you’re familiar with the importance of having a carrier partner that provides specialized last-mile delivery logistics solutions. However, with so many options at your disposal, it is quite difficult to pick the best one.
That’s why, we’ve listed 9 key factors you must consider when choosing the best last mile delivery company for your business.
1. Delivery Speed and Options
Today’s customers want super fast delivery. In 2023, around 58% of customers have paid extra to avail themselves of superfast delivery services from businesses.
To keep up with this growing customer demand, you need to look for a last-mile delivery company that provides multiple express delivery options, like same-day delivery, next-day delivery, two-day delivery, etc. The more diverse the options are, the better it is for your business.
2. Pricing and Cost Structure
Different last-mile companies have different types of pricing structures. While some charge based on shipment weight and delivery distance, some offer flat-rate service. In fact, a few last mile delivery companies provide a subscription-based pricing model.
So, first, evaluate the type of shipments you usually deal with and then opt for a company whose pricing model suits you the best. At the same time, take a quick look at the surcharges it might impose for value-added services.
3. Tracking and Visibility
After hitting the “Buy” button, customers eagerly wait and stay anxious until they receive the orders. Hence, you must look for a last mile delivery company that has a comprehensive order-tracking mechanism. Plus, ensure it pushes delivery updates to customers to encourage a sense of security in customers’ minds.
4. Service Area and Coverage
Last mile delivery companies usually partner with hyperlocal delivery companies and postal services to cover a wide range of locations and zip codes under its serviceability. Not to mention that the wider its reach is, the more effectively you can serve your customers.
Thus, always go for a last mile delivery logistics solutions provider that has established its availability across diverse areas, including urban, semi-urban, and rural locations.
5. Integration with Your E-commerce Platform
Check whether the last-mile delivery company offers easy integration with your eCommerce platform. This integration will help you on various fronts. For example, it’ll automatically sync orders, saving you from manual order entry, display EDD on checkout pages, and consolidate the order tracking within the storefront itself. Overall, it’ll create a more manageable and efficient experience for you and your customers.
6. Technology and Innovation
If you want to compete in today’s eCommerce industry and want to “wow” your customers, you should opt for a last-mile delivery company that adopts changes and introduces innovative delivery solutions. These may include drone delivery, electric vehicles, predictive analytics for route optimization, address validation, smart lockers, and other innovative systems.
7. Customer Service
Even if a company provides top-notch services, it’d be of no use if the customer support system is not up to the mark. It may give your customers a sense of ignorance if they are left unheard. On the other hand, an active customer service system makes customers feel valued, which further makes them loyal to your brand. So, before choosing a final-mile delivery company, ensure it has a super-active customer service team to support you and your customers.
8. Delivery Reliability
Delivery reliability mainly refers to the capability to consistently meet EDDs and accurately deliver the items to the end recipients in good condition. To evaluate a last-mile delivery company’s reliability and check if it really keeps its promises, you need to look at its track record and customer reviews. You can also tap into your network to ensure whether it’s reliable enough.
9. Return and Refund Policies
Though it’s not a must-have criterion, it’d benefit you in the long run if the last-mile delivery company you choose offers a comprehensive return and refund management solution. Think of it as a cherry on top. So, check the return options it offers, the timeframes for returns and refunds, return shipping fees, customer communication methods, etc.
Final Thoughts
Undoubtedly, last-mile delivery is the trickiest and most expensive segment of eCommerce logistics. However, when managed properly, it can open up opportunities for boosting customer satisfaction and thus the retention rate. And it’s quite difficult to pull off without the help of a specialized last-mile delivery service.
With a host of specialized last-mile delivery solutions, it aims to mitigate all the final mile challenges and amp up the overall delivery efficiency. We hope this guide has given you an in-depth understanding of last-mile delivery and the best last-mile delivery services available in the market.
