The Economics of Last Mile Delivery: Costs and Benefits for Companies and Customers

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Last-mile delivery is the most critical stage of the supply chain for e-commerce businesses. It involves transporting goods from a warehouse or fulfilment centre to the final destination, which could be a residence, a business, or a retail store. It’s a complex process that involves multiple stakeholders and can significantly impact the economics of the entire supply chain.

At Finmile, we understand the importance of understanding the economics of last-mile delivery. Here are some of the costs and benefits of last-mile delivery for companies and customers:


Transportation Costs: Last-mile delivery can be expensive, especially for businesses that offer free shipping to customers. The cost of transportation, fuel, and vehicle maintenance can add up quickly.

Labour Costs: The cost of labour, including drivers, warehouse workers, and customer service representatives, can also be a significant expense for businesses.

Infrastructure Costs: The cost of maintaining and improving delivery infrastructure, such as roads, bridges, and delivery hubs, can also be a significant expense.


Increased Revenue: Last-mile delivery can help e-commerce businesses increase revenue by offering faster and more convenient delivery options.

Customer Satisfaction: Providing a seamless and efficient delivery experience can improve customer satisfaction and increase repeat business.

Competitive Advantage: Offering a superior last-mile delivery experience can help businesses differentiate themselves from their competitors and gain a competitive advantage.

At Finmile, we specialise in last-mile delivery services and can help you understand the economics of last-mile delivery for your business. Contact us today to learn more about how we can help you optimise your last-mile delivery operations and improve the economics of your supply chain.

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