Jitsu, the last-mile delivery provider that helps brands meet and exceed customer expectations, today released findings from “Rethinking Last-Mile Delivery: Building Customer-Centric Retail Experiences,” a report created in collaboration with Coresight Research, a leading research and advisory retail technology firm. As part of the report, Jitsu and Coresight Research surveyed consumers and senior-level brand and retail executives to better understand the challenges, priorities, and opportunities in the last-mile delivery space.
According to the report, brands that offer fast delivery options (same day, next day, or within two days) experience improved outcomes: Two-day or faster delivery options are correlated with a 10.5% uplift in conversion rates and an 8.9% increase in repeat purchases. Meanwhile, 45% of the consumers surveyed said they would be unlikely to purchase if the delivery speed was too slow, while two-thirds of consumers said they would be unlikely to make a purchase if the delivery cost was too high.
These survey findings are critical to brands that want to differentiate themselves from competitors and capitalize on the growing ecommerce market. Industry analysts forecast U.S. retail ecommerce sales will reach $1.7 trillion by 2027 and account for more than 20% of overall retail sales. Jitsu and Coresight’s report underscores how last-mile delivery solutions give brands a competitive edge in today’s ecommerce market and are integral to building customer loyalty and improving the overall delivery experience.
“This report makes clear what we’ve always known at Jitsu: The delivery experience is fundamental to the overall customer experience and significantly impacts everything from brand loyalty and customer lifetime value to a brand’s bottom line. That’s why last-mile delivery is so crucial to a brand’s success,” said Raj Ramanan, CEO, Jitsu. “The brands that are going to win big will be the ones partnering with a last-mile delivery provider that can ensure fast deliveries, offer end-to-end transparency throughout the delivery experience, and leverage advanced technology capabilities to boost the customer experience—all while keeping delivery costs in check.”
When surveying retailers, Jitsu and Coresight discovered that 84% of brands cite cost efficiency as the top or second most important factor when selecting delivery partners. Three-in-five brand executives reported that 30% of their supply chain costs are connected to the last-mile portion of the delivery experience.
According to the report findings, there is a noticeable gap between what consumers want regarding last-mile delivery capabilities and what brands offer regarding delivery options. For example, the “quick delivery option” (within two hours) accounts for a significant portion of overall deliveries (14%), but is only provided by a quarter (26%) of the brands surveyed. The same is true for same-day delivery options — these account for 18% of all deliveries, but just over a third (34%) of brands offer same-day delivery.
"Consumers expect to be able to find great deals online and they have been conditioned to expect free and fast shipping,” said Deborah Weinswig, CEO and Founder, Coresight Research. “Retailers with high shipping costs and slower delivery times are likely experiencing more cart abandonments as consumers search for more competitive shipping options that can arrive next-day or same-day. Retailers that are able to control last-mile delivery costs while also providing fast and reliable service will have an advantage."
