E-commerce and Last-Mile Delivery

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September 9, 2021

The shift in the E-commerce sector 
With the virtual space ruling over everybody’s life, so is virtual shopping or E-commerce. The unpredictable and unpleasant crisis that swept the whole world has opened new business vistas. Consumers find E-commerce more comfortable, time-saving, and safe. One can see two types of producers or E-commerce players – one who has already marked a niche in the E-commerce platform and increased their scalability during the pandemic for more profit and efficiency. 
 As mentioned earlier, the last leg of a shopping experience is product delivery at your home. When it comes to the e-commerce platform, this is the yardstick for the success of a business. Consumers look for fast, efficient, and transparent delivery. If you can deliver a product at least a day before your competitor, you are on the higher end of the digital business ladder. Studies suggest that last mile shipping accounts for about 53% of the total cost of shipping. It includes costs incurred on the vehicles and drivers for shipping. So, companies plan efficiently to optimize the last-mile delivery costs keeping in mind the on-time product delivery without any damage. The facility for tracking the products, from the time of shipment to the time of delivery at your doorstep, is one of the major advancements in delivery services. There is also proof of delivery for ensuring the product has finally reached its destination. If people had preferred the cash-on-delivery mode before the pandemic, now, there is a shift in trend due to hygienic and preventive reasons.
 Companies, from their end, are finding ways to improve the efficiency of last-mile delivery services. It includes in-house delivery to cut extra vehicle and driver cost, increased traceability, like locating the product on the GPS and carrier upsells (bringing in a similar product you might be interested in while delivering the actual product). Do not be surprised if you have a drone or robotic delivery at your doorstep, as E-commerce companies are planning to use robots and drones in the future to cut labor costs.
E-commerce is expected to reach high by 2022. This sharp growth is changing the way logistics services function. It is growing at a shocking rate where transportation companies are learning how to put up. With this, there is a need for last-mile logistics to become more innovative, new, and tech-driven.
Price and speed are the two competing aspects of last-mile logistics. Consumers need quick home delivery but are still delicate when it comes to price. It has, in turn, resulted in last-mile logistics work to balance the two factors to meet the clients’ needs. The changes in last-mile logistics have managed to consider these two factors, to meet the clients’ requirements.
Companies have begun using effective last-mile delivery services to differentiate themselves from their competitors. Tremendous competition in the last mile logistics has made immense advances in the shipping industry. Last-mile logistics need to consider three solutions to balance price and speed. They are regional housing, smart automation, and crowdsourcing.
With the technology advancement, chances for satisfying the customer’s need in the last mile are also growing. In the coming 10 to 15 years, tremendous changes are likely to happen amid some challenges. Did you identify what your competitors are doing? How can you implement these new strategies to increase your last-mile logistics? Clarion Logistics, a leading logistics in UAE, is closely building plans to execute these changes for our clients. Do you wish for a fast, reliable, and cost-effective delivery for your customers? We can assure you the best last-mile logistics solution as your job transportation partner. Write to us or contact us to get the discussion started on your needs! 

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