Last-mile delivery habits have evolved considerably since the COVID-19 epidemic. The US Department of Commerce said that Americans spent $791.7 billion online last year, up 32.14 percent from 2019.
All of this was due to the pandemic and subsequent lockdowns, which caused buyers to rely more on online local merchants to meet their demands.
Here are six last-mile delivery themes we believe will emerge in the coming months.
Table of Contents
- Consumer Behaviour from the Covid-Era Will Survive For A Long Time.
- There Will be an Increase in the Demand for Faster Deliveries
- The Demand for Delivery Automation Systems is Expected to Rise
- The Demand for Long-Term Last-Mile Delivery Logistics Will Increase
- The Sharing Economy Will Be Boosted by the Last-Mile Delivery Industry
- Customers will Demand more Transparency
- Final Thoughts on Last-Mile Delivery Trends
Consumer Behaviour from the Covid-Era Will Survive For A Long Time
After the first few months of 2021, things began to normalize as COVID numbers decreased and the immunization rate increased. It appeared that the pandemic was drawing to a close.
To everyone’s dismay, a new COVID-19 variation (Delta) has evolved, which is more contagious and thus more fatal than the other kinds. According to the Centers for Disease Control and Prevention, the Delta coronavirus strain is considered to be responsible for 51.7 percent of new COVID infections (CDC).
This clearly suggests that the pandemic will last a little longer, with consumer behavior remaining unchanged from the previous year.
The epidemic has accelerated the digital economy’s expansion, which was already on the increase. These are long-term changes that have an impact on the overall market. As a result, we can witness increased delivery demands and “here to stay” behavior.
There Will be an Increase in the Demand for Faster Deliveries
As the volume of deliveries increases, consumers will demand faster deliveries. 24 percent of US online customers choose same-day delivery for purchases from pure online shops last year. Even as recently as this year, the figure had grown to 36%.
Companies who do not provide same-day or overnight shipping will lose customers to their competitors.
As a result, one of the most significant last-mile delivery logistics trends is for firms to offer a variety of delivery options in order to give quick deliveries and increase income.
Customers want to buy from a company that offers multiple delivery options, therefore companies are required to take control of their eCommerce and fulfillment.
The Demand for Delivery Automation Systems is Expected to Rise
As the demand for deliveries grows, the value of delivery automation will certainly rise. We may expect an increase in the adoption of technologies that will speed up and automate the delivery process as one of the last-mile delivery logistics trends.
Both home last-mile delivery logistics companies and other logistics delivery organizations will begin to employ logistics delivery management software such as EasyRoutes to automate route planning and scheduling, as well as build well-optimized delivery routes with directions to work for last-mile drivers. These streamlined routes can be given with fewer errors and in less time. This is critical because delivery demand is expected to continue to climb.
There may also be some exciting advancements in self-driving commercial vehicles, such as Tesla’s driverless trucks.
The Demand for Long-Term Last-Mile Delivery Logistics Will Increase
Consumers are becoming more concerned about the environment, and they prefer to buy from companies that have a reputation for being ecologically friendly and sustainable. People are turning away from unsustainable enterprises, whether it’s because of their carbon footprint or their packaging.
Consumers prefer to buy products packaged in environmentally friendly materials, according to a DS Smith study. 29% of consumers claimed they had stopped buying specific brands due of their environmentally unfriendly packaging.
Many companies are already using carbon footprint labels to inform customers about their environmental impact.
A paradigm shift toward environmentally friendly brands is happening all over the place.
Even EU customers, according to the European Consumer Organization, are willing to make sustainable choices.
Sustainable delivery logistics will be around for a long time, and for good cause, given the current status of the environment. It is impossible to overestimate the importance of long-term logistics.
Whether you utilize delivery management software to compute fuel-efficient routes or integrate electric vehicles in your delivery fleet, you must include sustainable delivery logistics as soon as feasible in your plan.
The Sharing Economy Will Be Boosted by the Last-Mile Delivery Industry
According to predictions, the global sharing economy will be valued $335 billion by 2025. It has already caused mayhem in asset-heavy businesses such as hospitality (AirBNB) and will continue to do so in the delivery logistics industry.
The timing is perfect for a strategic shift in logistics delivery service providers’ operating models, as demand for same-day or expedited deliveries is at an all-time high. According to a poll, 68 percent of people said that faster shipping would motivate them to shop online.
Furthermore, there is a critical lack of commercial drivers right now. The distribution and logistics business faces a significant issue in attracting and keeping personnel. The extraordinary set of circumstances that occurred in the aftermath of the pandemic deserves commendation.
This shortage of drivers isn’t going away any time soon. According to the American Trucking Associations (ATA), the industry was 60,800 drivers short in late 2018. If nothing is done, the shortage could grow to nearly 160,000 drivers by 2028.
As a result, the sharing economy will grow at an unprecedented rate as a delivery logistics trend in order to address the growing driver scarcity and meet the need for faster deliveries.
Uber and Doordash have already built driver networks to deliver packages to customers via their vehicles. We can probably anticipate this to spread to eCommerce and retail as well. To enhance their income, store personnel may deliver things to customers while driving home.
To become more efficient, businesses would pool their resources and fleets. For example, a restaurant fleet with more time beyond lunch rush hour could help a merchant meet higher demand throughout the holiday season.
Customers will Demand more Transparency
Gone are the days when you could just tell your customers when their order would arrive. They now need to know exactly where their packages are at all times, particularly if they are time-sensitive. We expect that the need for transparency and clarity about the locations of their goods will continue to rise this year and in the coming years.
Delivery Logistics software like EasyRoutes by Roundtrip can help you become more transparent. It has customer-facing tracking numbers and links that let your customers see the status of their orders at all times. You even have fine-grain control over details like whether you want to show how many stops away they are, or how far away your delivery driver is. EasyRoutes also has a customer alerting that helps you notify your customers at various points long the delivery journey.
The days of simply telling your consumers when their order would arrive are long gone. They must now be aware of the exact location of their packages at all times, especially if they are time-sensitive. This year and in the next years, we expect the need for transparency and clarity regarding the whereabouts of their items to grow.
EasyRoutes by Roundtrip, a delivery management platform, can assist you in becoming more open. It includes tracking numbers and links that your clients may use to check the progress of their orders at any time. You can even specify whether or not you want to show how many stops they are away from you, or how far away your delivery driver is. Customer alerting is another feature of EasyRoutes that allows you to notify your customers at various points along the delivery path.
Final Thoughts on Last-Mile Delivery Trends
This is a once-in-a-lifetime opportunity for all delivery and logistics service providers to make a memorable impact on their clients. During a period when most other businesses are losing money, the delivery industry is seeing a boom.
In the coming years, as delivery logistics develops, more companies will offer speedy last-mile delivery logistics services at a fraction of the cost with an Uber-like experience. To accomplish so, they’ll need to make technology investment decisions that are strategic.
The current changes in delivery services are altering how we all think about delivery logistics in the past. We are now confronted with a data intelligence problem that requires orchestration.
For optimal operational and logistical efficiency, the EasyRoutes route optimizer may use this data to optimize and automate on-demand delivery logistics and fulfillment. You’ll see an increase in loyalty and conversion rates as a result of this, giving you an advantage for the remainder of 2021 and the years ahead.
This is your chance to become an inseparable part of your clients’ lives long after the pandemic has passed by providing world-class delivery services at the fastest possible speeds.