Last Mile Delivery
The final leg of shipping — from the logistics center to the customer's door. 53% of shipping costs.
In practice
Last mile is the moment the customer remembers. An SMS update plus on-time delivery equals a satisfied customer.
Common misconception
'Cheapest is best.' A high failure rate costs more once you factor in customer service, returns, and negative reviews.
How to fix it
Last-mile issues? (1) delivery success rate (target > 95%), (2) automatic SMS with tracking, (3) a selectable delivery window, (4) a backup carrier for problem areas.
Example
A bookstore: 12% of packages failed on first delivery attempt. 'Deliver to neighbor' plus pickup points cut failures to 3%, saving $4,200/month in customer service.
Priority
Measure delivery success rate now. Below 93%, switch carriers.
Related terms
Keep learning. Metrics that touch the same area:
- CarrierLogisticsA company that performs shipping: DHL, UPS, USPS, FedEx. Each has different pricing, speed, coverage, and reliability.
- 3PL – Third Party LogisticsLogisticsAn external company for storage, picking, packing, and shipping. The store owner sends inventory to the 3PL, receives orders, and the 3PL handles fulfillment.
- Reverse LogisticsLogisticsManaging product returns: collection, inspection, sorting, restocking, or recycling. Costs 2-3x regular shipping.
- Cross-Border CommerceLogisticsSelling internationally — currencies, languages, taxes, customs, shipping reliability.
- FBA – Fulfillment by AmazonLogisticsAmazon stores, packs, and ships for you. Includes the Prime badge and higher ranking. Fees: referral + FBA + storage.
- Safety StockLogisticsExtra inventory held beyond what average demand requires — protects against demand fluctuations, lead-time delays, and forecasting errors. Safety Stock = Z × √Lead Time × Demand STD.
Jimmy tracks your Last Mile Delivery, automatically
WhatsApp alerts when something important changes. No dashboards, no hassle.