TAKEAWAYS
Consumers Have the Last (Mile) Laugh While the use of last-mile delivery has increased in the pandemic era, the process has experienced various growing pains. A new consumer survey shows customers have encountered regular delays and would like to have greater visibility of their deliveries. The survey, conducted for Anyline by Researchgate, examines the extent to which consumers have turned to online purchases since the start of the pandemic. In particular, some respondents say they have shopped online for items they previously only would have bought in person, including groceries (43%), home essentials (30%), and restaurant meals (29%). As last-mile delivery becomes more prevalent, customer expectations have grown, nds the report. Consumers’ responses suggest last-mile delivery’s performance has faltered; 44% say delivery time frames have slowed since the start of the pandemic, and 68% say they have encountered delivery delays. More than three-quarters (76%) say that an unacceptable delivery experience would strongly or somewhat affect their decision to order from that company again ( see chart ). The number rises for each passing generation, including 81% of millennials and 86% of Gen Z shoppers. Of those surveyed, 88% say they would nd the ability to redirect a delivery either very useful or extremely useful, and 96% favor the use of GPS to allow them to track their deliveries.
E-COMMERCE GROWTH: SLOWER BUT HEFTY Even as growth slowed from 2020’s pandemic-fueled explosion in activity, the global e-commerce market still grew a robust 19.9% in 2021, according to Transport Intelligence (Ti). Indications are growth will slow but remain hefty. Ti’s market sizing and forecast data and analysis shows a projected annual growth rate of 11.8% in the global e-commerce logistics market for 2021 through 2026. North America, in particular, will enjoy rapid growth, surpassing Asia Pacific by 2026 as the largest e-commerce logistics market in the world, Ti says. The United States, Canada, and Mexico are all expected to see growth above the global average, while the more mature Chinese and South Korean markets are expected to see slowing growth. “In 2021, e-commerce has been a key growth sector for logistics and we’ve seen some spectacular revenue growth from individual service providers,” says Michael Clover, head of commercial development for Ti. “Overall growth has slowed since 2020, leveling off as the extraordinary conditions for e-commerce growth brought about by the pandemic unwind, but is still above pre-pandemic levels. “The forecast out to 2026 portrays a maturing market where online retail penetration levels are sustained in the most mature markets between 25 and 30% and other markets move up to this level,” he adds. Of note, the cross-border e-commerce logistics market has a projected compound annual growth rate of 10.7% from 2021 to 2026. Driving the growth are consumers who increasingly use e-commerce to search outside their country for particular luxury goods unavailable at home. Still, compliance with tax and customs regimes could hinder cross-border e-commerce market growth from fully reaching its potential.
Would an unacceptable delivery experience strongly or somewhat affect your decision to order from that company again?
Silent Generation
Baby Boomers
Generation X
Millennials Generation Z
Source: Survey conducted for Anyline by Researchgate
22 Inbound Logistics • April 2022
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