E-commerce hasn’t slowed down since the boom experienced at the onset of the pandemic. Statista predicts online shopping to grow 56% over the next four years, and Insider Intelligence believes it will make up 22.3% of total retail sales worldwide by 2023 — now just around the corner.

The growth in online shopping has had a huge impact on customer shipping expectations. From the moment they check out to the second they see the product on their front doorstep, customers expect a fast and seamless purchase journey. With  75% of online shoppers concerned about their orders being stolen off their front doorstep this holiday season, you need to ensure your shipping process is streamlined and painless. Last mile delivery is the final step in assuring that efficient experience. 

Unfortunately, it doesn’t always go according to plan. According to Loqate, 8% of first-time deliveries fail in the U.S., and 68% of businesses say a failed or late delivery is a “significant cost” to their operation because they then must pay to redeliver the product, or offer the customer a refund or discount. 

This can happen for a variety of reasons. Many shippers struggle to overcome crowded streets or ports, lack tools to track shipments or communicate with other stakeholders, and face snags they can’t anticipate because they don’t have enough visibility into supply chain workflows.

Last mile delivery is becoming more complex and dynamic with increasing customer demands. If shippers are unable to provide tangible solutions, disgruntled businesses will turn to other options. Shippers need to effectively protect cargo, ensure a seamless delivery process and save money during last mile delivery, which accounts for 53% of total shipping costs. Let’s take a look at some ways your business can successfully mitigate costly last mile delivery mishaps. 

Invest in technology 

Technology is the key to improving supply chain management and avoiding problems during last mile delivery. It helps shippers increase efficiency and effectively thwart off any potential issues by providing greater visibility. 

Real-time delivery tracking is a game changer when it comes to protecting your cargo. It allows customers to see precisely where their delivery is at any point within the logistics process, putting them in the driver’s seat. DispatchTrack says 90% of customers want the ability to track their order, but only 66% of customers were able to do so. 

While giving the customers greater insight, technology integrates all management systems so you can quickly spot any issues that might be going on with a delivery. DispatchTrack found that six in 10 consumers are unlikely to purchase from a retailer again when a previous order misses the scheduled delivery window, so having greater visibility into deliveries gives you the opportunity to get ahead of the problem and solve it — before the customer ever knows something was wrong. 

Optimize communication capabilities

As supply chain disruptions continue to wreak havoc, you need to be able to communicate with customers the moment an issue arises. 

Technology platforms allow for customizable and automated notifications to tell a customer when a package is out for delivery. This lets the customer plan accordingly, cutting down one of the most costly and persistent issues: missed deliveries. 

If the delivery needs a signature and the customer isn’t home, that package is sent on the costly journey back to the shipper. Loqate says 63% of consumers have dealt with a missed delivery, and failed deliveries cost U.S. businesses over $193,000 last year. 

If the customer isn’t home and the package can be left at the front door, it could be damaged by the weather or stolen by porch pirates. Improving communication capabilities is critical to ensuring this doesn’t happen.

On top of that, you need to make communication with logistics experts easily available and accessible. DispatchTrack found that half of consumers blame negative delivery experiences on poor communication. For customers and businesses alike, having ready access to a team of experts can mean the difference between a long, complex logistics experience and a smooth shipping process. 

Find reliable logistics partners 

With online shopping orders only growing, you must be able to distribute the increasing shipping workload that comes with it. 

The Customized Logistics and Delivery Association (CLDA) and the Transportation Intermediaries Association emphasize the need for third-party logistics (3PLs) and last mile delivery fleets to work closer together so you give customers a “seamless delivery experience on the scale of Amazon.” Collaboration allows critical needs to be quickly solved in the first, middle and last mile of supply chains. Penske and NTT Data found that 71% of shippers say using 3PLs has also contributed to improving their customer service.

Many fleets in the last mile sector belong to the CLDA, which has a “Find a Delivery Partner” service on its website that shippers and 3PLs can use to find last mile partners for delivery needs across the country. Utilizing a reliable logistics partner to deal with those short last mile deliveries allows you to focus on other important operations to scale your business.

It’s imperative that last mile delivery is a smooth, efficient experience for the customer, and mitigates any costly issues on your end. Investing in technology for greater visibility on shipments, improving communication capabilities and outsourcing reliable logistics partners will help you save money during last mile delivery and keep customers happy throughout the holiday shopping rush.