At Trellus, the merchants on our Same-Day Delivery platform are in need of last-mile logistics for small businesses. Many need a solution like Trellus that’s designed for their needs, and we’re happy to deliver. We also encounter a number of small businesses on the fence, debating, “Should I offer same-day delivery? Is it really necessary?” We advise small business owners to not just take our word that offering last-mile delivery is important for survival. Follow the data for last-mile logistics and see how the market is moving, and make a determination for yourself.
When we talk about solutions “important for survival,” we’re not exaggerating. Nearly half of small business owners, including 59% of retailers, say they’re at risk of shutting down by the fall, according to research from Alignable (as reported by Retail Dive). Alarmingly, that’s up 12% from the 35% that were in this situation a year ago. Unfortunately, it’s not getting easier to be a small business in America, let alone on Long Island, while competing against e-commerce giants and big-box chains.
We should all keep in mind that in 2022, it’s not necessarily “insightful” that customers want fast, convenient delivery, when it’s now the norm. What’s more valuable is knowing where the industry is headed, where the major players are investing, and what your small business can do to stay ahead.
Last-Mile Logistics: A ‘Must’ for Getting Your Products/Goods to More Customers
The data is in: a sizable shift will take place over the next 3 years. In our last Locally Delivered webinar, we highlighted a stat from the 2022 Bringg Barometer: State of Retail Delivery & Fulfillment, published January: 99% of retailers either already offer same-day delivery or plan to do so by 2025, showing strong demand for fast, convenient delivery. Behind the scenes, major retailers and last-mile logistics providers are investing now in technology and infrastructure.
Small businesses can’t afford to sleep on this activity and catch up later. By offering same-day delivery today, you can not only expand your bottom line, but you can be much more competitive by 2025.
Again, don’t just take our word for it. We recommend checking out Bringg’s 2022 State of Last Mile Logistics report, based on a survey of 200 logistics and transportation leaders from across North America and Europe.
Bringg asked these industry influencers where they are focusing their last-mile operations today, as well as their key priorities and challenges for the rest of 2022 and beyond.
Below, we’ve provided 5 insights from this report that we want small businesses, especially our Trellus merchant partners, to know.
1. The ability to offer same-day delivery is a priority now more than ever.
This trend shows no sign of slowing or reversing. A majority of logistics providers, 68%, say they currently offer same-day services or will do so in 2022. As the saying goes, “follow the money” and see where the major players are investing. That’s where the market is moving, and how businesses will follow.
2. Returns/pickup services show an uptick.
Don’t forget about return pickup. More than a quarter of logistics providers, 27%, said that offering returns and pickup services is one of their top strategies for increasing business through last-mile operations. Take note it’s 27% in 2022, compared to just 5% of respondents in 2021. By spring or summer 2023, expect 64% of delivery providers to offer return services, and by 2025, a commanding 80%, according to the report.
Small businesses should consider “getting ahead” by offering a return service today.
Source: State of Last-Mile Logistics, Bring 2022 Report
3. Businesses using last-mile logistics want better experiences — and they’re getting them.
According to the last-mile logistics providers surveyed, the top features “shippers” want are:
- Real-time tracking of orders (42%)
- Mobile notifications to customers (34%)
- A white-labeled customer experience app (26%)
Notably, these are all features Trellus offers today to small businesses on our platform.
Source: State of Last-Mile Logistics, Bring 2022 Report
The bottom line is that better delivery experiences will drive last-mile revenue growth. As seen in the graph below, the top strategies for driving business are:
- Shortening delivery windows (47%)
- Offering faster deliveries through automated dispatch and routing (45%)
- Providing real-time tracking (42%).
Logistics providers continue to prioritize visibility and automation across stakeholders as methods of reducing delivery costs, according to the report. The vast majority, 87%, are either already using real-time visibility or plan to by 2024, while 90% say they will be live with automated dispatching and routing by 2024.
Again, Trellus is currently providing these advantages to Long Island small businesses. For more information on our route optimization and batching features, watch our latest webinar, “Amplifying Your E-Commerce Business.”
4. Driver retention doesn’t have to be a problem. It depends on who’s managing the network.
The survey revealed that 38% of respondents struggle with driver retention. At Trellus, we don’t struggle with high turnover among drivers because they’re offered best-in-class compensation, 80% of the delivery fee. Plus, they’re eligible for base pay if they’re able to commit to being on call with us. The result is a better experience, both for small businesses and the end customer.
5. Onboarding and integration is a pain point. It doesn’t have to be.
Similar to findings in the 2021 survey report, shipper onboarding and integration is the top pain point for logistics providers (44%). Bringg advises, “Look for software that promotes greater connectivity across the last-mile network, along with simpler onboarding processes for shippers.”
At Trellus, we prioritize our platform’s ease of onboarding and ease of use. Trellus integrates with most of the top e-commerce platforms with the goal of helping small businesses offer Same-Day Delivery at checkout. Integration provides a seamless digital experience they’re accustomed to.
Here at Trellus, more than 250 small businesses are “following the money” in the last-mile logistics market. They’ve leveled up their ability to compete in the ongoing e-commerce evolution.
If you’re a small business owner on Long Island, we encourage you to join our network and stay ahead of the curve. Learn more about Trellus for Businesses here.