Trends In Last Mile Delivery That Will Dominate 2022

We are sure you heard about that story where one bad delivery experience cost an eCommerce provider more than 20 customers. If not, here is what happened. So, Anne, a young resident of Boston, once ordered food for her friends. It was her birthday and hence her treat. From pizza to sandwich everything was on the menu. But unfortunately due to delays in delivery the 8 o’ clock dinner got postponed to 10. Most of Anne’s friends had left by then and she took to social media to express her grievances. Most of her friends followed suit.

While customers are willing to pay extra for faster delivery, they are unforgiving when it comes to poor delivery experience. Here are some interesting statistics that highlight the expectations of modern consumers.

• 80% of the shoppers expect a smart tracking facility for their order
• 58% of the shoppers expect their order to be delivered within 40 minutes
• 86% of the customers want retailers to provide them the ability to pick the most convenient delivery option

Considering the scenario, it is unarguably true that a company cannot win its customers’ hearts and wallets without keeping their best interests in mind. While the last-mile delivery market is expected to grow to $91.5 billion by 2030, it is good for the brands to have an idea of the last mile delivery trends 2022 that are expected to disrupt this sector- 

Focus on Environment-friendly Deliveries Will Increase

Green logistics and deliveries are the talk of the town among retailers and logistics services providers. The motive is to achieve zero greenhouse gas emissions by 2050. Businesses will focus on offering environment-friendly delivery options, using reusable packaging material, and reducing the CO2 emissions caused by delivery trucks.

• DHL and many other companies are investing in electric vehicles to facilitate deliveries

Adoption of Quick Commerce Model Will Gain Momentum

Quick commerce or Q-commerce is disrupting the on-demand delivery space, mainly for the grocery, pharma, and e-commerce industries. Businesses are replacing their traditional delivery models with tech-based platforms to expedite delivery services. Now consumers expect their order to be delivered within 10 to 40 minutes. Moreover, they also want complete control over when, how, and where to receive their order.

• According to Sendcloud’s report, 67% of the shoppers believe delivery flexibility is a significant factor
• By 2025, both same-day and instant deliveries are expected to reach a joint share of 20 to 25% of the complete last-mile delivery market

And to facilitate instant deliveries or quick deliveries, we can witness a spike in the adoption of the quick commerce business model. Businesses will focus on establishing micro warehouses and implementing intelligent tools for achieving faster delivery SLAs and quick order fulfillment.

Last Mile Delivery Automation is The Way Forward

Automation accelerates the entire delivery process, reduces human efforts, enhances productivity & profitability, helps with predicting future demands and trends, and renders numerous other benefits. It also helps keep up with the changing consumer demands and last-mile delivery trends. In 2022, more businesses will implement last-mile delivery software to automate order dispatch, route planning, task allocation, performance monitoring, and various other logistics tasks.

• The global automated last-mile delivery market is expected to grow at a CAGR of 18.5% during 2021-2028

The digitization of last mile delivery processes, as one of the main last mile delivery trends 2022, can also contribute to simplify fleet management, which can reduce the overall transportation costs, need for hiring more vehicles from the market, improve drivers’ performance, and ensure speedy deliveries.

The Importance of 3PL Will Surge

To manage changing customer expectations and shrinking delivery fulfillment windows, it is important for the brands to partner with reliable 3PL partners. That’s because maintaining an in-house fleet, keeping a tab on every delivery, monitoring the performance of riders, and controlling other logistics activities can be a daunting and expensive task. It can also distract businesses from their core goals. Hence, we can see a spike in the number of businesses partnering with third-party logistics providers.

Customer Experience For Last Mile Success

Customer experience is one of the biggest factors behind the last-mile delivery success. In 2022, we can see e-commerce businesses as well as retailers considering customer experience as their priority to delight their customers.

• ParcelMonitor’s report highlights 84% of consumers don’t wish to make a second purchase from a brand after one poor delivery experience.

It can be done by providing flexible delivery options, offering real-time tracking, ensuring on-time, in-full deliveries, and establishing clear communication with customers. Smart tech tools will help businesses to achieve this goal.  

Delivery Through Drones, Delivery Bots, And Autonomous Vehicles

According to Pitney Bowes report, every second, around 3250 parcels are transported globally; this volume is projected to be doubled by 2026. Managing such parcel volume is not possible using a traditional delivery approach. Therefore, we can witness more and more e-commerce businesses and retailers experimenting with their delivery strategies and investing in robotic deliveries through autonomous vehicles, drones, and delivery bots.

• Amazon has invested approx. 530 million dollars in the self-driving car company Aurora
• According to StreetDrone, a renowned UK tech company, driverless delivery vans will be on the roads by 2023

As we look into the future, businesses will adopt smart technologies and tools to balance between delivery cost and speed and enhance customer experience. Besides, sustainable deliveries will be on priority to reduce carbon footprints. And businesses keeping up with these last mile delivery trends 2022 will gain a competitive edge in the market.