A Study on Last-Mile Delivery Challenges in E-Commerce Logistics: A Customer’s Perspective

Abstract

Last Mile delivery plays a crucial role in the success of E-Commerce logistics, as it represents the final point of interaction between the company and the customer. Despite technological advancements, customers continue to face several challenges during the last mile delivery process, which directly influence satisfaction, trust and repeat purchase intentions. This study aims to identify the major challenges experienced by customers in last mile delivery and to evaluate their expectations and preferences regarding delivery options in E-Commerce logistics. The research adopts a customer centric approach and highlights issues such as delayed deliveries, failed delivery attempts, lack of real-time tracking, high delivery charges and poor communication. The findings of the study are expected to provide insights for E-Commerce companies to improve delivery efficiency, enhance customer satisfaction, and strengthen their competitive position in the market.

Introduction

The rapid growth of e-commerce has transformed customer buying behavior by offering convenience, wider product choices, and easy access. As online shopping increases, logistics, particularly last mile delivery, has become critical for ensuring timely order fulfillment and overall customer satisfaction. Last mile delivery—the final stage where goods are delivered from warehouses to customers—though covering a short distance, faces operational challenges such as traffic congestion, incorrect addresses, customer unavailability, and poor coordination. From the customer perspective, issues like delayed delivery, high charges, lack of tracking, and ineffective communication negatively impact satisfaction. With rising customer expectations for faster, flexible, and reliable deliveries, understanding last mile delivery challenges and preferences is essential for e-commerce firms.

Objectives

1. Identify key challenges faced by customers during last mile delivery.

2. Evaluate customer expectations and preferences for last mile delivery options.

Concept of Last Mile Delivery

Last mile delivery is the final and most expensive stage of the supply chain, involving order confirmation, shipment tracking, doorstep delivery, and handling returns. Efficient last mile operations enhance reliability, timeliness, and customer trust. Technologies like GPS tracking, route optimization, and delivery notifications improve performance, while inefficiencies (delays, poor communication, failed attempts) can lead to negative reviews and loss of brand loyalty.

Challenges Faced by Customers

• Delivery delays caused by traffic, poor route planning, and high order volumes.

• Failed deliveries due to customer unavailability or incorrect addresses.

• Poor communication and lack of real-time updates.

• High delivery charges, particularly for express or same-day services.

• Product damage, unprofessional delivery personnel, and complex returns.

Friedman Rank Test Findings:

• Most critical challenge: Incorrect delivery address (6.28)

• Other major issues: Incorrect product, unavailability of customer support.

• Least faced problem: Payment/OTP issues.

Customer Expectations and Preferences

Customers prefer delivery services that are:

• Fast, reliable, and timely

• Real-time tracking for transparency

• Flexible delivery options such as time slots, alternate locations, or contactless delivery

• Affordable or free delivery

Preferred delivery options:

• Scheduled delivery slots: 26.7%

• Same-day delivery: 20.7%

• Express delivery: 19.3%

• Eco-friendly delivery: 17.3%

• Standard delivery: 16.0%

Most customers prefer scheduled delivery slots.

Relationship with age and technology recommendation:

• Technologies suggested include GPS tracking, drone delivery, smart lockers, autonomous robots, and electric vehicles.

• No significant relationship was found between age and technology preference (P = 0.144), so the null hypothesis is accepted.

Key Findings

1. Significant differences exist among customer challenges, with incorrect addresses and wrong product delivery as top issues.

2. Inadequate delivery updates create confusion and dissatisfaction.

3. Scheduled delivery slots are the most preferred delivery option.

4. Same-day and express deliveries are also valued by many respondents.

Suggestions

1. Enhance real-time tracking and delivery notifications to reduce uncertainty.

2. Provide flexible delivery time slots to match customer convenience.

3. Implement technology-based solutions: mobile apps, SMS alerts, digital proof of delivery.

4. Strengthen customer support systems to quickly resolve delivery issues.

In conclusion, effective last mile delivery management, supported by technology and customer-centric strategies, is essential for e-commerce companies to improve satisfaction, loyalty, and competitiveness.

Conclusion

The study concluded that last mile delivery plays a crucial role in determining overall customer satisfaction. Customers face several challenges such as delivery delays, lack of real-time information, and limited communication during the delivery process. At the same time, the findings reveal that customers increasingly expect technology driven solutions, flexible delivery options and reliable service in last mile delivery. Understanding customer expectations and preferences helps logistics companies design efficient delivery strategies and improve service quality. Therefore, adopting advanced technology, enhancing customer support, and addressing key delivery challenges can significantly improve customer satisfaction and strengthen last mile delivery performance.

References

[1] https://www.investopedia.com/terms/l/logistics.app [2] https://www.shipbob.com/blog/last-mile-delivery [3] https://www.sciencedirect.com/topics/business-management/last-mile-delivery [4] https://www.apics.org/apics-for-business/products-and-services/apics-dictionary

Copyright

Copyright © 2026 Ms. Sowmya R, Dr. B. Devipriya. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.