The last leg of any race is often the hardest, and that’s no different in the fulfillment industry. Getting your package to a customer’s door can be a logistical nightmare, especially that final mile. Today we’re going to break down final mile delivery and how you can make that process faster and cheaper.
What is Final Mile Delivery?
Final mile delivery, also called last mile delivery or last mile logistics, is the final stage of your product’s journey from a local warehouse or fulfillment center to the customer’s door. It’s not a literal mile, as the distance and time varies. But the goal for final mile delivery is to be as fast, affordable, and reliable as possible.
This step is often the most expensive part of the process—accounting for over half of total shipping costs—but also the most essential.
Importance of Last Mile Delivery
This last mile is not just about delivery. It’s about the experience. And customers’ expectations for this stage are extremely high. They want deliveries that are fast, trackable, and accurate. If their package doesn’t arrive when you say it will or an item is missing, it negatively impacts the customer experience.
For eCommerce brands, the delivery driver may be the only customer-facing person in the entire sales cycle. This last leg is the most visible part of the process, so getting it right is crucial. Any mishaps will reflect poorly on your brand, while quick shipping and good communication helps you retain customers.
The importance of last mile delivery comes down to how you make your customers feel. And it doesn’t end when the package hits their doorstep. Rather than just opening a box, customers want to feel seen and appreciated through personalized packaging or product bundling.
P.S. We partner with UnDigital to add personalized marketing inserts for your orders, to really make that last mile memorable.
Last Mile Delivery Challenges
Unfortunately, the final mile is riddled with factors you can’t control or plan for. Here are just a few challenges you’ll face as you work to optimize final mile delivery:
- Traffic and congestion
- Poor street conditions
- Road closures
- Bad weather
- Gas prices
- Driver abilities
- Truck capacity
- Need for specialized handling
- Customer availability
- Driver shortages
- Inefficient routes
- High customer expectations
These factors can lead to slower delivery times, damaged items, or even missed deliveries—all of which increase costs. Last mile delivery challenges vary depending on location. In urban areas, you’ll face more traffic slow-downs. In rural areas, you’ll face inefficient routes with lots of small stops and long distances between each.
The popularity of online shopping has been increasing for the past 10+ years. In 2025, about 20% of all retail sales are online. With this rise in eCommerce purchases, brands have more and more packages to deliver, meaning that final mile is more important than ever.
But even with these last mile delivery challenges, you can work to reduce costs and increase speed.
Strategies to Improve Final Mile Delivery
Here are some last mile delivery solutions to help your brand improve delivery times and lower costs.
Leverage Technology and Automation
With the right technology, your drivers can make more deliveries each day. AI plays a major role in this through route optimizing software that helps reduce delays, save fuel, and boost efficiency. Also consider dynamic re-routing based on real-time traffic and weather conditions.
You can also rely on technology, so your customers are never left in the dark. Use delivery management platforms for end-to-end visibility, and incorporate IoT sensors and smart lockers for secure, contactless pickups.
Reliable 3PLs have technology built in to optimize every process, including the last mile, so you can go faster, spend less money, and make customers happier.
Prioritize Communication
Technology also keeps your customers informed at every step. Send automated updates via text, email, or app notifications with real-time tracking links. Provide live GPS tracking to reduce missed deliveries and increase transparency. You can even provide ways for the driver and customer to communicate, in case there are any issues with the delivery.
Jay Group works with FenixCommerce to share critical information with customers at checkout, including estimated delivery dates. By communicating this up-front and promising efficient delivery, you see more purchases and happier customers.
Choose the Right Carrier
Using smaller, agile courier networks that specialize in specific geographic areas often reduces costs and speeds up final mile delivery.
At Jay Group, we partner with the best global and regional carriers, including FedEx, USPS, UPS, DHL, OnTrac, Amazon Parcel, and more! By working with trusted companies, we can get you the best rates and shorter delivery times for fast and affordable shipping.
Optimize Warehousing and Storage
If you need to cut delivery times, then you need to find a closer fulfillment center. That’s where 3PLs come in. We have strategically-located warehouses that are closer to customers and major transportation hubs, reducing time in transit and carbon emissions. This allows us to reach 78% of the population in just two days.
If you don’t have a fulfillment partner, try spreading out your inventory to various local storage facilities to make that last mile faster. Set up urban warehouses or fulfill from retail locations to shorten delivery distances.
Improve Data Tracking
You can use data to anticipate demand and delivery needs. Analyze past orders to predict delivery surges and plan your resources accordingly. Implement inventory forecasting to position products closer to customers.
Accurate data tracking is important so you can see what’s working and what isn’t. Your processes shouldn’t be a mystery. With the right tracking, you can find what’s slowing down your final mile delivery and fix it.
Customize Delivery Options
This tip doesn’t impact speed, but it does impact the customer experience. You can offer flexible delivery options like same-day, next-day, or scheduled delivery to cater to different customer needs. Allow delivery time windows, so people can plan accordingly. Also provide pickup options at lockers, partner locations, or even retail stores.
Commit to Sustainability
At checkout, offer eco-friendly delivery choices, like bicycle couriers or consolidated delivery days. Along with these green options, your dedication to shorter delivery times means less carbon emissions. Share your efforts to environmentally-conscious customers to show how you’re prioritizing sustainable practices.
Partner With a 3PL
Our final last mile delivery solution is to work with a 3PL. This lets you focus on the core of your business while we handle order fulfillment and logistics. With a fulfillment partner, you have access to all of our resources, including:
- Advanced warehouse technology
- Real-time inventory data
- Carrier partners (with the best rates)
- Warehouses on the East and West Coast
- Value-added services to improve the customer experience
- 50 years of industry leadership
Transform your final mile delivery strategy.