As 2023 approaches, things are gradually returning to normal as people enthusiastically make purchases, primarily from the comfort of their homes. The most successful companies in the world, including Amazon, Walmart, and BigBasket, have succeeded thanks to the development of last-mile delivery.
Every successful brand’s potential growth depends on how it develops its last-mile delivery strategy in light of the major trends. Here are 5 significant last-mile delivery trends that will aid in business expansion in 2023.
1. Drivers in the last mile are under pressure to continue in 2023. A major theme will be empowerment- Households are ordering more packages to be delivered. The issue in India isn’t a lack of drivers. The main points in these areas are bad roads, ambiguous addresses, gridlock, and a lack of comprehensive maps. According to a Boston Consulting Group analysis, the expenditures associated with road congestion in just four Indian cities—Delhi, Mumbai, Kolkata, and Bengaluru—totalled a staggering $22 billion. When there is heavy traffic and customers accustomed to receiving their goods on time become upset and phone frequently to check on the progress of their orders, the problem only worsens. Customers don’t receive a wonderful delivery experience when drivers are unsatisfied and underproductive. This hinders business growth and causes a loss of client trust. Thus, the goal in 2023 will be to empower and make drivers happy.
2. Sustainability is No Longer a Differentiator in Last-Mile Delivery – Last-mile emissions in India are rising year after year. The last mile emissions per delivery are 285 gCO2, which is much more than the global weighted average of 204 gCO2, according to a Stand. Earth Research group analysis from 2022. According to this study, last-mile delivery emissions from Indian cities like Delhi, Mumbai, Bengaluru, Kolkata, and Chennai are higher than those from France or Canada.
Businesses will increasingly need to automate and digitalise last-mile logistics operations in India by 2023. Additionally, firms will use parcel lockers in the last mile in the upcoming years to cut down on carbon emissions.
Last-mile delivery carbon emissions are actively reduced thanks to electric vehicles (EVs). According to a report, worldwide electrification rates for last-mile e-commerce cargo fleets are between 15 and 20 per cent.
Sustainability will no longer be a luxury for firms to advertise in 2023. They will make small efforts to do it since they will have to win clients.
3. The Massive Omnichannel Retailing Wave- Businesses that want to offer their customers smooth purchasing experiences must integrate all available channels, known as omnichannel retailing. Businesses in India are eager to benefit from the omnichannel retail boom. Companies can increase delivery control, speed, flexibility, and cost by investing in omnichannel capabilities. It reduces the unused time required for the goods to transit via intermediaries like the brand mother warehouse and improves the effectiveness of last-mile logistics. As a result, in 2023, India and the rest of the world will experience the global wave of omnichannel retailing.
4. Building a Stronger Customer Base Through Direct to Consumer (D2C) – Consumers today value ease and customisation in addition to pricing and a wide range of product options. A D2C e-commerce platform provides an abundance of this. In 2023, numerous well-known D2C brands will compete to dominate India’s untapped market. D2C enterprises must improve their last-mile capabilities to stay caught up in the competition. D2C firms are eager to invest in last-mile delivery solutions to fill the gaps between local warehouses and customer doorsteps. Software as a service (SaaS) offerings has emerged as a boon for companies looking to increase the convenience, adaptability, and sustainability of their direct-to-consumer (D2C) presence. Therefore, 2023 will be a year in which D2C brands improve last-mile deliveries and broaden their D2C presence.
5. Strong Investments in Solutions for Last Mile Logistics Artificial Intelligence (AI) and Advanced Analytics Capabilities to Continue – The last-mile delivery market in India is developing similarly to the needs in the US and China. In India, last-mile delivery penetration is higher than 10%. Additionally, it predicts that by 2024, the size of India’s last-mile delivery business will reach $6-7 billion. From 1.36 billion shipments in 2020, the total e-commerce shipments will increase to 5 billion by 2025. The last-mile delivery is anticipated to receive further support in 2023 because of India’s private equity and venture capital investments in logistics technology, totalling over $1.45 billion with 34 agreements in 2021. For more than half of the companies, the biggest obstacle to offering last-mile delivery services is the delivery cost. Businesses want to boost their investments in AI technologies to make the last mile cost-effective and to increase revenues from it.