EMERYVILLE, CA, Aug. 1, 2023 – AxleHire, an expedited, urban last-mile delivery provider that helps brands meet and exceed customer expectations, has compiled a best practices guide for exceeding customer and shipper expectations when it comes to convenience, speed, reliability and responsiveness connected to the delivery experience.
The delivery industry is undergoing major disruptions. Meanwhile, many ecommerce brands are relying on their shipping carriers to help meet customer expectations. More than half (55%) of all consumers now prefer to buy directly from brands rather than multi-brand retailers, a trend that is significantly more common among younger shoppers. One in four customers will only consider buying an item if it can be shipped in two days or less. Over 60% of consumers prioritize brands offering next-day delivery. And there is a growing preference for same-day delivery. Online shoppers also want it free: over half of consumers will abandon a cart if presented with an extra shipping cost.
But there is a caveat: two-thirds of online shoppers are willing to pay a small premium to get their package early. Three in four consumers list convenience as their top priority when making an online purchase, while 95% of shoppers list convenient delivery options as a significant factor in purchasing decisions.
The reality is that the delivery experience is crucial to brand loyalty, with 84% of consumers claiming they will walk away from a brand after a bad delivery experience. In fact, three in five consumers are likely to remain loyal to retailers who are open and honest about delivery costs and timing.
Long viewed as a back-end commodity, delivery logistics is shifting from simply being a cost center to serving as a real opportunity for brands. The delivery experience is the new battleground for ecommerce brands, with last-mile delivery services integral to customer satisfaction. This is especially true in densely packed urban markets where most potential customers and key stakeholders reside.
Logistics execs universally agree that the last mile is the most inefficient part of the delivery chain, accounting for 53% of total shipping costs. Not only does the last-mile segment of the delivery experience incur the biggest costs, but it also involves trade-offs that can sometimes sound like a lose-lose proposition—providing a higher level of service can easily break the budget, while trying to contain costs can lead to unacceptable service levels.
Last-mile delivery done right can drastically enhance brand loyalty, but what does a last-mile delivery experience “done right” look like for ecommerce brands? To start, it involves:
- Localized inventory: Micro hubs that push inventory out closer to the end delivery point, in essence shortening the last-mile portion of the delivery and supporting speed and sustainability.
- Dynamic control: Operational flexibility to continually adapt to surges or dips in demand.
- Complete transparency: 100% visibility of the end-to-end process with no black holes for the shipper as well as 100% visibility for the consumer so that they can track their package’s journey from the warehouse to their front door.
- End-to-end precision: Data and algorithms that drive daily optimization of capacity and routing, creating a more sustainable delivery experience that reduces the carbon footprint for every package delivered.
- 24/7 customer service: Real-time response and recovery capabilities.
Brands need a reliable last-mile provider that can ensure a 99+% on-time delivery rate combined with complete visibility into the delivery experience. They need a delivery partner that enhances their brand reputation. Ultimately, your last-mile carrier should make your brand look like a logistics expert.
To better understand the logistics of last-mile delivery and its impact on brand reputation, download AxleHire’s best practices guide: 7 Must-Haves for Your Last Mile Delivery Carrier.
Read our recent blog post to learn more about consumer expectations when it comes to the delivery experience.
About AxleHire
AxleHire is an expedited delivery service that helps brands meet and exceed customer expectations by providing a superior same- and next-day delivery experience. AxleHire leverages purpose-built technology and a gig driver fleet to drive transformative outcomes that catalyze customers’ brand growth. Logistics teams can now provide a differentiated delivery experience at a competitive cost, overcoming the limitations of legacy delivery providers. AxleHire operates in urban areas across the U.S., enabling high-volume shippers to consistently cater to the rising needs and expectations of their customers. For more information, please visit axlehire.com.