FAQs - Last Mile Delivery
Final-mile delivery is the last step of an order’s journey, from a local node or carrier station to the customer’s door. It’s the most complex and costly segment due to short distances, sparse stop density, time windows, and customer expectations for speed, communication, and flawless handoffs.
“Last mile” is the final handoff of a shipment to the end customer. It converts upstream transport into a doorstep experience, where routing efficiency, first-attempt success, and communication drive cost per order, on-time performance, NPS, and repeat purchases for DTC retailers.
First mile moves goods from the manufacturer to a DC or line-haul. Middle mile repositions inventory between facilities. The last mile takes orders from a local node to the consumer. Operationally, the last mile is the most variable: dense stops, time windows, building access, and reverse logistics.
Typically, the middle mile, line-haul or regional transfer that positions inventory at a local node (DC, micro-fulfillment, or station). Effective middle-mile planning (inventory placement, cut-off times) enables faster, cheaper last-mile routes and higher first-attempt delivery rates.
Post-delivery steps include proof of delivery, customer feedback, returns and exchanges (reverse logistics), white-glove assembly/haul-away for large items, and customer support follow-ups. For DTC brands, this phase strongly influences repeat purchase rate and support ticket volume.
A final-mile courier (or provider) specializes in doorstep delivery from a local node, offering routing, scanning, tracking, notifications, and specialized services (e.g., two-person, assembly, oversized). Quality is measured by on-time %, first-attempt success, damage rate, and CSAT/NPS.
A last-mile hub is a local facility where parcels are staged, sorted, and loaded onto routes. Proximity to demand, cut-off times, and loading discipline impact route density, driver productivity, and on-time performance, key levers for DTC cost per order and CX.
Plan → pick/pack → inject to local node → sort/load → route execution → delivery attempt(s) → proof of delivery → post-delivery support/returns. Each stage affects cost and CX; the largest gains usually come from better demand forecasting, inventory placement, route density, and comms.
A strategy defines service levels (speed, windows), inventory placement, carrier mix, routing policies, notification cadence, and returns handling. The goal is a lower cost per order with higher on-time and first-attempt success, without sacrificing brand experience.
A customer orders a sofa online. The retailer stages it at a nearby hub. A two-person crew delivers within a scheduled window, assembles it, removes packaging, captures proof of delivery, and updates the order status. That doorstep experience is the last mile.
It’s the final trip from a local facility to your customer’s doorstep. This step determines how fast, reliable, and delightful the delivery feels—and often costs the most due to short routes, traffic, and coordination with customer time windows.
The term highlights the final segment of the logistics chain. Despite being short in distance, it’s disproportionately complex and expensive because of individualized stops, tight windows, building access, and the need for real-time communication and proof of delivery.
“Carrier delivery” is a broad term for any transportation by a logistics company. “Last-mile delivery” specifically refers to the final handoff to the end customer, emphasizing routing density, time windows, tracking, and customer satisfaction metrics.
Fulfillment covers receiving, storing, picking, packing, and preparing orders. Last mile begins after fulfillment, moving the packed order from a local node to the customer, with emphasis on routing, delivery windows, tracking, and successful handoff.
It’s the specialized discipline for delivering orders from a local facility to consumers. Success relies on route density, driver productivity, building access, first-attempt success, and clear notifications, directly impacting cost per order and brand loyalty.
A software layer for routing, driver apps, scanning, ETA prediction, notifications, proof of delivery, and exceptions management. Platforms integrate with OMS/WMS to orchestrate speed, cost, and CX at scale across dense and sparse delivery zones.
Any shipment staged for final delivery to a consumer (parcel, bulky, or white-glove). It carries labels, barcodes, and route assignments; scanning events update tracking and trigger notifications through the final handoff and proof of delivery.
Common shorthand includes LMD (Last-Mile Delivery) and FMD (Final-Mile Delivery). In practice, “last mile” and “final mile” are used interchangeably by carriers, retailers, and customers.
Middle mile repositions inventory between facilities via line-haul, aiming for cost efficiency. Last mile completes the order at the doorstep, prioritizing speed, communication, and first-attempt success. The last mile has higher variability and per-stop costs.
Conceptually, reverse logistics refers to moving goods from the customer back to a facility (returns, exchanges, repairs). Operationally, its challenges mirror the last mile: scheduling, access, packaging, and customer communication, all affecting cost and satisfaction.
Orders are injected to a local node, sorted, and loaded to routes. Drivers scan packages at each step, follow optimized stops, and capture proof of delivery. Systems update ETAs and send notifications. Failed attempts trigger reattempts, pickup options, or returns workflows.
Stations receive line-haul, sort by route, stage by sequence, and load vehicles. Good station flow minimizes dwell time, misloads, and rework, improving on-time performance, driver utilization, and first-attempt success for DTC brands.
Your package reached the local facility that will deliver it. Next steps are sortation and loading to a route. Delivery timing depends on cut-off times, route capacity, and selected service level or time window.
The package has been loaded and departed with the driver. Expect a same-day delivery attempt if it left during the primary dispatch wave; otherwise, it may arrive in a later window or the next operating day.
The driver has your package on their route and plans to deliver it today. Actual timing depends on stop sequence, traffic, service level, and building access. Notifications and live maps (if offered) refine ETA as the route progresses.
It’s functionally the same as “out for delivery,” emphasizing the final handoff to the customer. The parcel is on a vehicle with a planned stop time; the ETA may update based on route progress and exceptions.
A final-mile provider has accepted the package and will perform the doorstep delivery. Tracking may switch to the provider’s system; look for a new tracking ID or link in your order updates.
Line-haul or upstream carrier handed the parcel to a local delivery partner. From here, local routes, time windows, and proof-of-delivery rules apply. ETAs can change slightly as the local provider sequences stops.
The package is moving within the local network—between station processes or on a vehicle—toward delivery. It isn’t necessarily on the driver’s route yet; watch for “out for delivery” for same-day arrival.
The parcel left a processing point and is heading toward the next step, typically loading or a delivery attempt. It signals progress but not a guaranteed delivery time. The “out for delivery” scan is more predictive for same-day arrival.
Yes. Most providers expose tracking pages or links via the retailer’s order portal. Best-in-class experiences include live maps, stop counters, and proactive SMS/email updates for delays, attempted deliveries, and proof-of-delivery.
Reputable providers update scans in near real time and show ETA windows that refine during the route. If tracking lacks credible timestamps, carrier branding, or consistent scans, contact the retailer to verify or request a new link.
Standard windows range from same-day to 2–5 days after arrival at the local node, depending on service level, cut-off, and route capacity. Bulky/white-glove deliveries often require scheduled time windows and may take longer.
Typically, within the service window that day, it is often 2–10 hours, depending on route length, traffic, and earlier stops. In dense metros, ETAs can narrow as the driver progresses. In rural areas, travel time and reattempts can extend delivery.
Low stop density, traffic, building access, missed deliveries, and narrow time windows slow routes. Inventory placement and cut-off times also matter. Improving route density, flexible windows, customer comms, and access instructions speeds delivery and reduces cost.
Common causes include handoff delays between carriers, route capacity constraints, address issues, weather, or a missed scan. Check for new tracking from a local partner, confirm your address and access notes, and contact support if no updates within one business day.
Not necessarily. Delays often stem from sorting backlogs or capacity constraints. If there’s no movement for several business days and support can’t locate scans or a physical hold, the retailer may reship while the investigation continues.
Usually, yes. However, operational issues, vehicle breakdowns, severe weather, or access problems can push delivery to the next operating day. Most providers will update status and notify customers if reattempting.
Yes. Red flags include generic tracking sites, mismatched carrier names, no scan history, or URLs sent only via text from unknown numbers. Verify on the retailer’s portal or the carrier’s official site; never enter payment info to “release” a package.
It shapes the entire post-purchase experience: speed, predictability, and professionalism at the door. Clear status language, accurate ETAs, and successful first attempts reduce WISMO tickets, improve NPS, and raise repeat purchase rates for DTC brands.
The last mile is short in distance but high in cost. Drivers cover a few stops per hour, face traffic and access issues, and must meet narrow delivery windows. Labor, vehicles, fuel, and failed-attempt re-deliveries drive per-order costs far higher than upstream transport.
Typical parcel costs range from $5–$12 per order in urban areas and are higher for bulky or rural deliveries. Costs vary by route density, service speed, time windows, and first-attempt success. Optimized networks and EV fleets can reduce the per-order cost.
It’s the charge the retailer or shipper pays to a carrier (or internal fleet cost) to complete final delivery. It includes driver wages, fuel, vehicle depreciation, insurance, dispatch, and overhead, often itemized on B2B invoices or built into a shipping fee.
For small parcels, $5–$10 is typical; for furniture or appliances, fees can range from $50–$150 depending on distance, assembly, and haul-away. Retailers often offset costs with minimum order thresholds or membership programs to maintain free or low-fee delivery options.
If the fee clearly covers driver wages, tipping is optional. For large, white-glove, or exceptional service, a gratuity of 5–10% of the service cost is common. Clear communication on receipts or checkout pages helps set customer expectations.
Add labour (hourly pay × route hours), vehicle cost (fuel, lease, maintenance), and overhead (sorting, dispatch, software). Divide by successful deliveries to get the cost per order. Include return and failed-attempt rates for a realistic total.
Consolidate orders into denser routes, use local micro-fulfillment centers, offer flexible delivery windows, deploy electric or low-maintenance vehicles, and use route-optimization software. Encouraging customers to provide detailed access notes can also cut re-deliveries.
Stop density – the number of packages delivered per hour—is the largest lever. Higher density reduces drive time and idle miles, lowering labour, fuel, and vehicle wear. Inventory placement and flexible windows help increase density.
A failed delivery can cost 1.5–2× the original trip due to re-dispatching, customer service calls, and potential product damage. High failure rates quickly inflate cost per order and hurt customer satisfaction.
Returns add reverse logistics: pick-up scheduling, driver labor, extra miles, and reprocessing. For some verticals, returns can increase total delivery cost by 20–30% if not managed with optimized routes or drop-off options.
Per-mile rates vary by region. In North America, $0.40–$0.80 per mile is common for small parcels; bulky or white-glove services can exceed $1.20 per mile. The rate must cover fuel, vehicle wear, insurance, and driver wages.
A common approach is to calculate all-in cost per mile (driver wage, fuel, maintenance) and add a 10–20% margin. Many shippers simplify by charging a flat fee within a zone and incremental mileage beyond it.
Divide total fleet costs (wages, fuel, maintenance, insurance, overhead) by total miles driven over a given period. Recalculate monthly or quarterly to account for changes in fuel price, driver pay, or delivery density.
A competitive rate covers operating costs and profit while matching market benchmarks. For light vehicles in urban areas, $0.50–$0.70 per mile is typical; long rural routes or heavy loads often require higher rates.
Light-parcel networks typically average $1–$3 per kg, but final-mile pricing usually depends more on route density, service speed, and delivery window than on weight alone, especially for small ecommerce packages.
One-hour or same-evening windows reduce route flexibility, often increasing cost per order by 20–40%. Wider windows or customer self-scheduling enable better stop density and lower total cost.
Electric vans cut fuel costs and may lower maintenance and emissions fees. Cargo bikes or micro-EV fleets excel in dense cities. Larger trucks may reduce trips for oversized goods but raise per-stop labor.
High-volume periods raise driver pay, temporary labor needs, and congestion. Without smart forecasting and pre-staged inventory, cost per order can spike 25–50% during holidays or flash sales.
Dense urban zones can achieve lower cost per order through better stop density, despite traffic. Rural or suburban areas with long drive times and few stops per route can double or triple per-order costs.
AI-based route optimization, real-time traffic data, and dynamic delivery windows increase stops per hour and reduce re-deliveries. Integrated OMS/WMS systems improve forecasting, while automated dispatching cuts manual labour, lowering total delivery cost.
Centralize all orders in a delivery management system, optimize routes daily, and monitor KPIs like on-time rate and first-attempt success. Provide real-time tracking and proactive delay alerts. Integrate WMS/OMS so every status update triggers accurate ETAs and customer notifications.
Use micro-fulfillment hubs, AI-driven route planning, and dynamic delivery windows. Group stops to increase density, deploy EVs or cargo bikes in cities, and automate re-delivery scheduling to lower cost per order and improve on-time performance.
It’s a blueprint covering network design, service levels, carrier mix, technology stack, and returns handling. A strong strategy lowers cost per order, keeps on-time rates above target, and supports scalable growth for high-volume DTC retailers.
To deliver each order on time, in full, and at the lowest sustainable cost while protecting the customer experience, meaning accurate ETAs, minimal damage, and seamless returns.
Common KPIs include on-time delivery rate, first-attempt success, cost per order, delivery density (stops/hour), customer NPS or CSAT, and failed-delivery rate. These metrics reveal both cost efficiency and customer satisfaction.
Improve demand forecasting, position inventory closer to customers, and optimize routing to raise stop density. Add proactive communication (SMS/email) to reduce missed deliveries and automate exception handling to minimize manual support work.
First-attempt success – the percentage of deliveries completed without reattempts. Higher success cuts costs, limits emissions, and boosts customer satisfaction. Accurate ETAs, clear instructions, and flexible windows are key levers.
Route optimization algorithms, dynamic ETA prediction, driver mobile apps with scanning and proof of delivery, and real-time customer notifications. IoT sensors and AI forecasting add further gains in reliability and cost efficiency.
It’s the tension between speed, cost, and customer experience. Retailers want faster deliveries without higher expenses, but faster usually costs more. Optimization and better demand planning help break the trade-off.
Balancing delivery density and flexibility. Sparse stops and narrow time windows raise costs. Retailers need to encourage flexible windows and plan inventory locations to keep per-order cost down.
Higher stop density – more packages delivered per mile or hour lowers driver time and vehicle wear, directly reducing cost per order. Micro-fulfillment centers and smart batching boost density.
Micro-fulfillment centers bring inventory closer to customers. This cuts travel distance, supports same-day windows, and increases route density, lowering cost and improving on-time performance.
Strategically placing inventory near high-demand zones shortens delivery routes and increases first-attempt success. This reduces cost per order and improves customer satisfaction.
Tighter windows please customers but reduce routing flexibility, increasing cost and failed attempts. Wider or dynamically chosen windows improve density and lower cost.
Sending accurate ETAs, real-time updates, and easy reschedule links reduces failed attempts and WISMO (“where is my order”) tickets, cutting both direct and support costs.
Photo or signature POD confirms successful delivery, lowers dispute rates, and streamlines returns and insurance claims. It provides hard data to improve route planning and driver accountability.
High return rates increase cost per order and driver miles. Tracking return-related stops and integrating reverse logistics into the same optimization engine reduces extra trips and costs.
It’s the initial challenge of address accuracy and access. Incorrect or incomplete addresses cause re-routing and failed deliveries. Upfront address validation and customer prompts reduce these failures.
It’s the structural approach a retailer chooses: outsourced 3PL, in-house fleet, gig-economy drivers, or hybrid. Each model has trade-offs in cost control, scalability, and customer experience.
Track cost per order, on-time rate, first-attempt success, failed-delivery cost, customer NPS/CSAT, and carbon footprint. Review monthly to pinpoint optimization opportunities and validate ROI on technology or new carrier contracts.
Specialized carriers, regional couriers, and 3PL providers handle the final leg from local hubs to the customer’s doorstep. Selection depends on service area, delivery speed, vehicle type, and value-added services such as white-glove or returns handling.
It’s the local delivery partner responsible for the very last handoff to the customer. This may be an in-house fleet or an external courier contracted by a retailer or 3PL provider.
Drivers working for a dedicated last-mile provider or a retailer’s own fleet. They typically use vans, box trucks, cargo bikes, or EVs depending on parcel size and delivery zone.
A company that specializes in planning, routing, and executing the final delivery step. They provide vehicles, drivers, real-time tracking, and proof-of-delivery tools, and often integrate directly with ecommerce order systems.
This is any contracted organization, whether a 3PL, courier network, or niche white-glove operator, that supplies the drivers, vehicles, and technology to complete final-mile deliveries on behalf of a brand.
A carrier focused on short-distance, high-frequency deliveries to end customers. They emphasize routing efficiency, fast ETAs, and first-attempt success, and typically support live tracking and electronic proof of delivery.
Common modes include vans, box trucks, cargo bikes, micro-EVs, and occasionally drones or autonomous robots. Choice depends on shipment size, route density, and sustainability goals.
For lightweight parcels and short distances, drones can be faster point-to-point. But for multi-stop routes with varied package sizes, well-planned van routes remain more efficient and scalable.
Global last-mile delivery is a multi-hundred-billion-dollar market, growing at double-digit rates driven by ecommerce and same-day expectations. Urbanization and sustainability pressures continue to fuel investment and innovation.
Globally, the largest carriers, integrators, and regional specialists generate tens of billions of dollars in revenue. Success depends on network density, automation, technology, and value-added services like reverse logistics.
Speed depends on region and product type. Same-day specialists and urban bike couriers can deliver within hours. High-density urban networks consistently achieve the fastest, most predictable door-to-door times.
A 3PL (third-party logistics provider) manages broader supply-chain functions, such as warehousing, fulfillment, and transportation. A courier typically focuses only on transporting goods. Many 3PLs operate or contract last-mile courier networks.
A combination of hubs, drivers, and routing technology that provides coverage across a region. Network strength is measured by geographic reach, route density, and service levels like same-day or two-person delivery.
Dense urban markets allow more stops per route, lowering cost per order and enabling faster service. Low-density rural areas require longer drive times, higher fuel use, and can double or triple per-order costs.
Industry analysts forecast double-digit annual growth over the next five years, driven by ecommerce expansion, faster-delivery expectations, and investments in automation, electrification, and alternative delivery modes.
EV adoption, cargo bikes, route-density optimization, and micro-fulfillment centers are key trends. These measures cut carbon emissions and support corporate ESG targets while controlling rising fuel costs.
They track KPIs such as on-time rate, first-attempt success, damage rate, and customer satisfaction. Many carriers share these metrics in dashboards or via API so shippers can monitor performance in real time.
It’s a contractual relationship where a retailer or brand shares order data and service requirements with a delivery provider. Carriers supply the vehicles, drivers, and technology to meet agreed SLAs.
They use flexible driver pools, temporary micro-hubs, AI-based demand forecasting, and real-time routing to absorb seasonal spikes without sacrificing delivery windows or on-time performance.
Evaluate geographic coverage, SLA guarantees, technology integration (real-time tracking, APIs), sustainability options, experience with your product category, and cost per order. These determine both operational efficiency and customer experience.
Get a Quote
