In today’s rapidly evolving landscape of global commerce, the final stretch of the delivery journey, often referred to as the last mile, has gained paramount importance. This stage, where products reach the hands of eager consumers, has become a focal point for innovation and optimization.
With the surge in e-commerce and changing consumer preferences, businesses worldwide are seeking efficient and customer-centric last-mile delivery methods. In bustling metropolises and remote corners of the world, a spectrum of ingenious approaches is emerging to tackle this intricate challenge. In this exploration of top last-mile delivery methods around the world, Parcel Monitor has unveiled a tapestry of strategies that cater to the diverse needs of both urban and rural communities.
Home delivery remains popular all around the world
Contrary to widespread assumptions, home delivery maintains its position as the predominant package delivery choice among global shoppers. The traditional approach remains favored across most regions, with Asia and Latin America leading the way at 97.6% and 97.4% respectively. Given the relatively recent emergence of e-commerce in these areas, coupled with the widespread use of cash for transactions, businesses find it more prudent to adhere to the tried-and-true method.
Furthermore, a marked inclination toward home delivery services is evident in both North America (95.6%) and Europe (94%). This outcome comes as no surprise, given the robust infrastructure and well-established logistics networks that characterize these regions. This favorable environment empowers businesses to provide efficient and dependable home delivery services. Notably, prominent players in the food and grocery sector, alongside online retailers, have significantly expanded their delivery capabilities to meet the growing demand for seamless door-to-door deliveries.
Oceania leads in preference for collection points among shoppers
Oceania’s e-commerce growth had been relatively sluggish before the onset of the pandemic, but the unique circumstances of 2020 have brought about significant positive changes. Australia, for instance, witnessed a remarkable surge, with over five million households engaging in online shopping every month, contributing to a record-breaking revenue of A$6bn in the last calendar year.
According to Parcel Monitor, around 12.2% of shoppers in Oceania favor collection points (CPs) over other package delivery alternatives. While CPs are a newer addition in New Zealand, this trend was already evident in Australia from the beginning of 2020. In a previous study, we highlighted that 49% of Australian consumers deemed CPs an essential delivery option, with the country experiencing a 47% year-on-year growth in collection point deliveries.
Collection points are the least popular delivery service in Asia
A recent trend in Asia is the rising prevalence of unconventional parcel delivery methods. For instance, Panasonic Connect Asia has announced the completion of the installation of 500 parcel lockers for the Parcel Locker Network System, and Ninja Van has provided parcel collections from Ninja Points (dedicated Ninja Van parcel shops and partner retail points) and Ninja Boxes (parcel lockers). Despite such efforts, parcel lockers remain the least popular option among Asian customers, with an overwhelming 97.6% preferring home delivery.
There are various reasons for the poor adoption of collecting points in Asia, one of which is cultural. Home deliveries are more in line with the preferences of many Asian countries, which value convenience and personalized service. Customers may experience greater convenience by having things delivered straight to their doorsteps rather than making additional visits to collection points or storage sites.
Furthermore, many Asian nations have complicated urban landscapes or highly inhabited cities, making an extensive network of collecting sites or lockers difficult to establish. In this regard, space restrictions and a lack of appropriate sites for lockers may hinder their broad use.
Last but not least, language barriers and user experience may influence the drive for home delivery. Customers must engage with digital interfaces and follow retrieval instructions while using parcel lockers. Unless the user interface is intuitive or available in local languages, Asian shoppers may be discouraged from adopting this delivery option, affirming their preference for home deliveries.
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