Top 10 Last Mile Delivery Companies and Startup in eCommerce
Introduction to Ecommerce Startups and Last-Mile Delivery Companies
eCommerce has revolutionized the way people shop. Last-mile delivery companies are the key to making eCommerce a reality.eCommerce’s ever-evolving ecosystem with the introduction of Amazon Prime’s Same Day Delivery service has exceeded customer expectations. To meet growing customer demand for faster, next-day, and on-demand delivery, Last-Mile Delivery Companies have been set up to assist eCommerce businesses in meeting customer needs.
Last-mile shipping is the most expensive part of eCommerce shipping operations. It also presents many difficulties and challenges. Failure deliveries and delivery exceptions are the main obstacles to smooth last-mile delivery experiences. Delays in orders, absence of proper order tracking mechanisms, etc.
Last-mile delivery is a problem in eCommerce shipping because of all these issues. Every online business strives for customer satisfaction and customer retention. It is therefore crucial that e-commerce businesses do everything they can to improve customer satisfaction and retention by streamlining last-mile delivery operations.
We will be listing the top 10 last-mile delivery companies that offer shipping services to eCommerce customers in this article. We’ll also discuss what last-mile shipping is, the challenges it faces and whether or not it is right for you. Let’s start!
What is Last-Mile Delivery for eCommerce Shipping?
As the name implies, last-mile delivery (or final mile delivery) is the final leg in the shipping process. Forward logistics, or the journey of a product to its destination from a seller or warehouse, can be divided into three phases: the first, middle, and last miles.
Last-mile delivery starts when an order is picked from the city’s hub and ends when the order is delivered to the customer. Last-mile delivery is performed by a carrier or delivery agent, who picks up the order from the hub of the destination city and delivers it to the customer in a delivery vehicle.
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Top 10 Last-Mile Delivery Companies and Startups for Online Business
There are many courier and logistics companies that offer last-mile delivery services for eCommerce businesses. So that you can choose the best one for your needs, we have compiled a list of industry-leading last-mile delivery companies and startups.
1. FedEx Last-Mile Delivery Company
FedEx is a well-known name in the world of eCommerce logistics and supply chain management. FedEx has a large network of warehouses worldwide and a wide range of carrier vehicles. FedEx has doubled its position as a last-mile delivery company in 2020 by offering last-mile delivery options for eCommerce companies.
FedEx can transport items up to 68 kgs. FedEx is authorized to transport dangerous goods such as lithium batteries and other electronic parts and cold chain supply chain management. FedEx can help with customs clearance upon arrival. They also offer expedited express shipping for urgent orders.
2. ClickPost Last-Mile Delivery Startup
ClickPost is a SaaS platform for intelligent logistics that automates last-mile delivery processes for eCommerce stores. ClickPost is pre-integrated to 150+ carriers so your orders can reach any part of the world.
It provides warehouse management, inventory management, and shipment tracking services for online businesses. It acts as a last-mile delivery service by sending customers order updates and getting feedback after each order has been fulfilled.
ClickPost offers excellent returns management services for companies that need to manage product returns. ClickPost starts with the customer placing a request for return on a self-service returns portal. This page collects customer feedback about the reason for returning products. Real-time tracking is also possible with the returns management module.
3. USPS Last-Mile Delivery Company
The official USPS (United States Postal Service), is the US government-led postal system. It provides last-mile delivery services to businesses in the USA or U.S.A. at very affordable rates.
It operates through its vast network of post offices throughout the country and makes doorstep deliveries. FedEx and UPS use the USPS’s incredible supply and delivery network for last-mile deliveries to their customers.
USPS is one of the few couriers and last-mile delivery companies that operate around the globe without holidays. It offers international and domestic shipping at some of the lowest rates. It is widely known for being one of the most cost-effective ways to ship small and medium-sized packages.
4. UPS ECommerce Last-Mile Delivery
United Parcel Service, a logistics and parcel delivery firm, can be called a “last-mile delivery” company due to the services it offers online retailers in managing their last-mile delivery problems. UPS is available in many other countries as well as the United States.
It oversees large warehouses as well as specialized delivery vehicles that can transport orders over land, water, and sea. UPS SurePost was created to provide last-mile delivery solutions for customers using the vast USPS infrastructure. The company is trying to offer a last-mile delivery service at lower prices.
UPS offers a shipping rate calculator that can be very helpful. To calculate approximate shipping costs, store owners can input details such as dimensions, weight, delivery address, and pickup location. UPS offers pallet boxes and other packaging materials online.
5. OnFleet Startup for Last-Mile Delivery
OnFleet, a last-mile shipping company, offers eCommerce shipping services for hyperlocal delivery businesses. OnFleet allows online businesses to connect with as many online platforms, inventory management systems, and websites as they wish. OnFleet provides real-time tracking and automatic tracking updates for customers. After every order is fulfilled successfully, OnFleet sends eCommerce companies Proof of Delivery.
OnFleet utilizes RESTful shipping API to allow data transfer between the system and carriers. This allows for faster and more automated delivery management. Auto-dispatch automatically selects the most urgent delivery assignments and assigns drivers to ensure seamless delivery. OnFleet uses route optimization to ensure the fastest route to customer addresses.
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6. Track-POD Last-Mile Delivery
Track-POD, a logistics and last-mile delivery management company, works entirely via a mobile app. It provides last-mile delivery solutions for eCommerce stores. Track-POD integrates with eCommerce selling websites and online marketplaces to provide customers with accurate EDDs at the checkout window. It encourages a paperless transaction and provides digital Proof of Delivery certificates. Customers can sign the certificate on their mobile. This allows online businesses to avoid unnecessary paperwork.
Track-POD is a GPS-enabled route planning software that determines dynamic ETAs. Track POD’s last-mile delivery software allows you to plan your resources more efficiently and monitors delivery performance using multiple metrics. Track-POD offers regular vehicle inspection and transport to eliminate any vehicle-related problems. It provides regular safety inspections and repairs at a minimal cost.
7. StarShip Technologies Last Mile Service Provider
StarShip Technologies uses robots for customers’ orders. The company’s services combine last-mile and hyperlocal delivery options. StarShip Technologies revolutionized last-mile delivery by adding automation and security to package delivery. This software is controlled by an app that opens the robot’s cargo compartment. The last-mile delivery company gives immediate ETAs once an order has been placed.
StarShip Technologies offers the most environmentally friendly shipping options to customers with self-driving robots that deliver orders right at the customer’s doorstep. They offer excellently affordable shipping options for parcel and food delivery.
8. Purolator Last-Mile Delivery Firm
Purolator, a Canadian logistics brand and supply chain management company, provides last-mile delivery solutions for global eCommerce businesses. With their QuickShip feature, Purolator ensures on-time delivery of every shipment. QuickShip provides all-day shipping. QuickShip can expedite delivery and reach customers before they even expect it.
If you sign up for an account, Purolator will give you a 40% discount on shipping costs. Purolator can be used by Canadian businesses to ship orders in as little as 2 days. Purolator can transport heavier items by air, rail, ocean, or land freight forwarding trucks. The Purolator website offers a way for entrepreneurs to purchase shipping supplies and packaging materials such as bubble wrap, boxes, tape, etc.
9. DHL Last-Mile Delivery Company
DHL, a multi-national logistics and parcel delivery company, recently increased its last-mile delivery capabilities. DHL is able to dispatch orders quicker because they have many warehouses and distribution centers around the globe. DHL is a last-mile delivery service that expedites order fulfillment, provides delivery dates, and allocates drivers and vehicles for the drop. You can also find a shipping rate calculator on its website.
DHL offers 24/7 customer support and international specialist support for international orders. DHL usually delivers international orders within 1 to 3 days. All shipping and delivery options offer live tracking. Customers can be notified via email and phone. DHL ships to more than 220 countries around the world.
10. Postmates Last-Mile Delivery Startup
Postmates, a logistics and last-mile delivery company, offers flexible delivery options for online shoppers. Ecommerce companies have the option to give customers the ability to schedule deliveries at a time that suits them. It performs a complete validation check at drop-off, including ID verification. Postmates can transport and carry items of high value. Postmates can also help eCommerce businesses add a delivery channel on their website or mobile apps for ease of handling.
Postmates delivers delicious food to more than 2500 cities across the United States. Uber owns it and it competes with popular food delivery services UberEats GrubHub, DoorDash, and DoorDash. Postmates can be accessed via its mobile app, which allows for faster delivery and easier order placement.
What is the Work of a Last-Mile Delivery Service?
Last-mile delivery companies, like Locate2U specialize in the last-mile delivery of parcels and products. This company is essential for ensuring goods reach their destination. They often deliver items within a specified time frame and geographic area. Online retailers and other businesses who need to make sure their customers get their goods as quickly as possible can use last-mile delivery companies.
Last-mile delivery companies take care of all shipping needs starting at the last mile. A third-party logistics firm (3PL) usually manages the entire shipping process for an eCommerce business. Last-mile delivery companies can integrate easily with different carriers and courier delivery firms to deliver orders to multiple locations in the fastest time possible.
It can be linked with online storefronts, so eCommerce companies can upload all orders to one platform for order management. Last-mile delivery logistics companies are able to provide exact EDDs (Estimated Delivery Days) at checkout on your online shop.
E-commerce stores that deliver orders on time can earn customer trust and increase foot traffic to their store. Last-mile delivery companies and startups offer real-time tracking capabilities to customers so they don’t feel disconnected.
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Questions to ask yourself before you hire a last-mile delivery logistics company
To ensure your delivery operations are managed efficiently and to deal with any last-mile delivery issues, we recommend that you hire a last-mile courier company. We also believe this is a decision every eCommerce company must make. We have compiled a list of questions that every online entrepreneur should consider before they hire a last-mile delivery service. These questions will help you understand your expectations of the last-mile delivery company.
- What percentage of my shipping operations is affected by last-mile delivery?
- What delivery expectations should you set for your customers
- How much does last-mile delivery cost for eCommerce companies?
- Can you lower last-mile delivery costs while maintaining quality and efficiency?
- Would you prefer to manage last-mile shipping operations yourself or have it outsourced to a company?
How do you choose a last-mile delivery carrier company for your eCommerce store?
You know the importance of having a reliable last-mile delivery company if you are an e-commerce merchant. There are so many choices available. How do you pick the best one? We offer some tips to help you choose the right last-mile delivery company for your business. We will also talk about some factors to consider when making your choice.
Shipping costs are a reminder. Last-mile delivery is fraught with problems. Last-mile delivery companies charge high prices for their extraordinary services. To get a better understanding of the deal, compare the charges for last-mile delivery companies with the services they provide.
Serviceability is the number of zip codes or locations that a carrier or third-party logistics company delivers to. Last-mile delivery companies should be able to deliver to as many areas as possible to maximize the benefits for your business. Talk to your last-mile delivery partner to confirm that they deliver to the areas you need or to see if they have any other routes.
Order Tracking Feature
An order tracking feature is essential for any eCommerce business. Customers don’t like to be kept in the dark about where their orders are located. An online business that does not prioritize customers’ needs will lose big in this age of evolving consumer expectations and changing consumer needs. So that customers can accurately track orders, choose a last-mile delivery service that offers a good order tracking system.
Also read: How to Optimize Same-Day Delivery in Your Supply Chain?
Speed of Delivery
Many people mistakenly confuse last-mile delivery with hyperlocal delivery. Although last-mile and hyperlocal delivery share the final or last mile of the shipping journeys, they are not the same. Delivery times are also not the same. Hyperlocal delivery allows for much quicker order deliveries. Last-mile delivery can still be made faster if logistic teams and carrier agents work together to avoid delays. Automation of manual processes is another important role that technology can play.
Customers may abandon their carts if they don’t have the option to pay at checkout. To avoid this, ensure that your last-mile delivery company has multiple payment options. Payment options can include bank transfers, PayPal, credit points, UPI, etc.
It is very common for eCommerce companies to return products. It is worth looking for a last-mile shipping company that offers returns management services. You can have your pick-up and drop-offs, returns processing, reverse shipping, stock administration, and other services handled by it. Last-mile delivery startups that offer robust returns management services can help businesses reduce product returns and make them profitable. Customers will return to your store if they have a positive experience with returns.
Many last-mile delivery issues are due to manual intervention and handling. The staff and ground forces are under too much stress when managing an influx of orders and allocating them to the correct carriers. Last-mile delivery companies employ advanced technology and software to improve efficiency. This allows them to automate many shipping processes, reducing delays and minimizing losses. To make ordering easy, ensure that the last-mile delivery company uses the most recent technology.
It is important to ensure your products when shipping them. To protect their investment, many businesses purchase shipment insurance. You should research all options before you ship. However, not every company offers this coverage. Understanding the various types of shipping insurance available will help you make an informed decision about which policy would be best for your company.
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Excellent customer service is crucial for any eCommerce business. Customers who are happy will be more likely to make repeat purchases and return. It’s, therefore, crucial to offering the best customer service possible. Customers expect to be able to track where their product is at all times during the delivery process. If the order status does not update due to technical issues, customers will seek out ways to get in touch with you. Customers can be soothed by a customer service team that provides relevant information.
It is crucial to research before you start looking for a shipping company partner if your eCommerce business is looking to expand. The track record of a shipping company can give you valuable information about its operations and reliability. Last-mile delivery startups that have a track record of reliable service and on-time deliveries will be more likely than others to meet your expectations. Capterra and G2 reviews can help you determine if the last-mile delivery startup is right for you.
Weight Limitations and Shipping Restrictions
It is important to know the weight restrictions and other shipping restrictions when shipping products to customers. These restrictions can be helpful in ensuring that your products arrive at their destination on time and safely. Some last-mile delivery companies may not be equipped to handle bulky shipments or heavy items. It is important that you discuss these products with your carrier prior to signing a deal.
It is also a good idea for you to discuss shipping restrictions, working hours, and holidays well in advance. It’s not a good idea to be stuck in the middle of sales season without a carrier to deliver orders.
Last-mile shipping is the most expensive segment of eCommerce shipping. It is difficult to map routes and assign drivers to find the exact address. The driver must also make delivery within the time limit. Customers today expect perfection in order fulfillment. eCommerce companies need to comply.
Our honest recommendation to any eCommerce company is to outsource the last-mile shipping operations, if not the entire process, to an outside company. This is not only cost-effective, efficient but also allows businesses to spend more time doing what they love. You can create, network, or sell. This article will give you an insider’s view of last-mile deliveries and how companies can assist with it. We wish you all the best in your future endeavors.