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Omnichannel delivery study

Balancing last-mile speed, cost, and experience

Last-mile delivery sits at the intersection of three competing pressures: how fast an order arrives, what it costs the company to get it there, and whether the experience meets what the customer actually expects. Our research across more than 300 companies shows that balancing these pressures is becoming harder, not easier—delivery service expenses continue to rise, even as consumers increasingly prioritize cost over speed. And because expectations vary widely from one customer to the next, no single delivery model can satisfy everyone.

Broadening delivery options

Rather than searching for one solution that fits all needs, leading companies are responding by expanding the range of options they offer.

The value of standard shipping is eroding. Our research shows that standard delivery increasingly comes with higher costs and slower speeds, and many companies have either eliminated free shipping altogether or raised the order thresholds required to qualify.

Rather than trying to optimize standard delivery to satisfy every customer, leading companies are giving customers the ability to choose the cost versus speed trade-off that matches their own priorities by offering more options.

New delivery capabilities are emerging that create value on both sides of the transaction. Our research highlights which of these emerging benefit structures are gaining real traction versus which remain in the early stages of adoption.

Not every customer wants delivery brought directly to their door. Building convenient pickup options can reduce last-mile costs significantly while still meeting—and in some cases exceeding—customer expectations.

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