Faster, greener, more cost-effective. The last mile challenges

Featured image of the article Faster, greener, more cost-effective. The last mile challenges
Quick commerce, curbside pick-up, lockers... With the rise of online sales, the last mile market is booming globally. How can retailers turn e-commerce logistics into a competitive advantage?
Enjoy this article for free while you’re in your trial period
You have access to our content for 15 days

Context

For the past 18 months, the last mile market (equals the most expensive service in logistics) has become a major source of losses for retailers. E-commerce logistics has been historically outsourced to third parties for some years, torn between two businesses with contradictory visions: logistics wanted to lower costs, e-commerce wanted to enhance customer experience. With e-commerce reaching unprecedented volumes, both visions are coming together around a common goal: customer satisfaction. The last-mile market has started to structure itself, with a profusion of companies eager to combine logistical efficiency and environmental performance. An impossible mission?

Key figures 

-The last mile represents 30% of a product’s transportation costs.

-Of more than 1.3 billion parcels delivered in 2020 in France, 30% (i.e.,390 million) were not delivered to the right recipient on the 1st delivery attempt. 

-60% of customers will not return to a website following a failed delivery. 

-Less than 1% of online retailers offer ‘green delivery’ at checkout. 

-Only 10% of DNVB include a return label in the parcel  

K.P.I.

– Delivery NPS.

– Returns NPS. 

Success rate of deliveries on the 1st attempt

– Lost package rate.

– Carbon impact. 

– % of customer service tickets related to delivery issues

Legal issues. In the U.K., France, Spain and Italy notably, city government want to reduce urban pollution. This involves reducing the speed of delivery vehicles and creating Low Emission Zones (there were 247 L.E.Z. in 13 European countries by April 2020). Only the least polluting vehicles are allowed to circulate in these zones, i.e., small vehicles, electric fleet and cargo bikes.

Recent facts

Amazon said it is aiming for zero carbon by 2040.

In the U.K., DHL Express targets a 100% electric fleet by 2030.  

Colissimo, France’s largest delivery operator, is shifting most of its traffic from D+3 or D+4 to next-day delivery.

Players involved

– Integrated or an outsourced fleet? Regarding last mile delivery, the trend is to work with several logistics partners to improve service levels whilst reducing costs.

You are reading this article thanks to your trial period.
Explore new horizons by checking out our other verticals:
You are reading this article thanks to your subscription to Mind Retail.
Explore new horizons by checking out our other verticals:
Do you have information to share with us?
Our other services
mind Research
Strategic Intelligence: Tailored research and market analysis services to power your insights and back your strategic decisions.
See more
mind Days
Networking & Events: Half-day conferences covering key industry topics and open to the entire ecosystem.
See more
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
How retailers are reinventing the checkout
As pressure on household budgets continues, new payment methods including account-to-account (A2A) instant payments, Wero, Buy Now Pay Later (BNPL), loyalty points and cashback, are gaining...
2 November 2026
Julien Cailleau, Oney: “With 3 retailers, we are testing the use of Valiuz data to streamline financing approvals”
Against a backdrop of growing pressure on household budgets, the European CCD2 Directive coming into force and a new legal framework for assisted purchasing journeys, Oney is stepping up an...
29 October 2026
Advantail signs with Formality to streamline commercial lease management
Amid an ownership shake-up following its acquisition by Evoriel, shopping centre operator Advantail has signed with Formality to digitise the management of commercial leases and contracts across...
US retailers divided over the rise of autonomous shopping agents
In the US, Gap, Walmart, Best Buy, Amazon and eBay are taking very different approaches to agentic commerce. While TV shopping giants QVC and HSN see these new intermediaries as an opportunity to...
Most viewed articles of the month on mind Retail
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Eric Meulien, Al Futtaim: “The next step in our roadmap is to replace the in-store POS system”
Operating in 18 countries and managing brands such as Ikea, Zara and Marks & Spencer, Emirati group Al-Futtaim (2025 revenue: US$9.7 billion, up by 6%) has a unique vantage point from which to...
2
Marketplaces: How Orange and Virgin Australia reinvent their value creation models
Looking to turn their audience into a commercial platform without having to carry the risk of holding stock, new verticals are entering the marketplace space, with new models designed to enhance...
8 October 2026
3
How Maison A.Constant built a unified customer database with n8n
Eager to bring together customer data and improve data accuracy, jewellery and watch retailer Maison A.Constant built its own Single Customer Repository (SCR) using n8n, an orchestration platform...
4
Cashback: Younited secures an exclusive contract with Bouygues Telecom
Following Orange and the launch of a marketplace, Bouygues Telecom is strengthening a customer loyalty strategy by focusing on purchasing power with a new cashback offer. For French fintech...
16 October 2026