Blog > Last mile delivery

What delivery method should you choose for your e-commerce business in 2024?

Published on 4 March 2024 • Reading time: 7 min read

With the development of e-commerce, delivery methods have multiplied over the last 5 years. It’s not easy to know which ones to choose to satisfy your customers.
To help you do this, we have listed:

• Existing delivery methods
• Current consumer expectations in terms of delivery
• Advantages and conditions of use of these different methods

Faced with developments in e-commerce, choosing the right delivery methods is becoming crucial. These options need to be tailored to consumer expectations and the specific characteristics of your products. A wise choice enhances customer satisfaction and the competitiveness of your e-commerce business.

But before we get started, we want to address a fundamental question:

Why is the choice of delivery method so important?

According to a study carried out in 2023 by Sencloud on a panel of European consumers, delivery and shipping options are the number one reason for abandoning online orders during the checkout process.

In other words, shoppers stop their orders on the way, mainly because of the delivery. This can be due to the amount of the fees charged, the delivery times, but also the delivery methods offered.

Top 3 shipping related reasons for checkout abandonment (data from Sendcloud).

But the problem doesn’t stop there..
According to The Guardian, more than one in three people in the UK have encountered delivery problems once their order has been placed. And almost half of consumers have stopped buying from one of the websites concerned after encountering an issue with the delivery.

So you need to offer the delivery methods consumers want, to limit order abandonment. But you also need to ensure that your deliveries are flawless, to limit churn and retain your customers over the long term.

Let’s look at the existing delivery methods:

The main reasons consumers stop midway through an online order (data from Sendcloud).

What delivery methods are available?

We have identified 6 delivery methods that have been the most widely used in recent years.

• Standard (or home) delivery is the most common delivery method. The parcel is delivered directly to the recipient’s letterbox or in person, depending on its size. The delivery time can vary from 2-3 days to one week, depending on the distance and the carrier chosen.
• Express delivery: this is also delivered to your home, but in speed mode. Packages generally arrive within 12 to 48 hours, depending on the destination. But some online merchants offer even faster delivery.
• Delivery to a pick-up point: this solution allows your customers to collect their order from a shop close to their home. Packages are generally available up to a week after delivery.
• Pick-ups from automated lockers: you’ve probably already seen the Amazon lockers. These delivery lockers are secure storage systems. They allow flexible and secure collection, 24 hours a day, by entering a code. They are often located close to shops, railway stations or petrol stations.
• Click and Collect delivery: Internet users place their order with an online retailer and collect it from one of that retailer’s physical shops. The product is made available immediately if it is in stock in the shop. If not, the customer has to wait a few days, but saves on delivery costs.
• Planned delivery or by appointment: this is offered mainly for bulky or high-value items. Additional services, such as installation or assembly, may also be included.

In addition to these traditional options, three new delivery methods are becoming increasingly popular:

• Collaborative delivery: This innovative approach involves the use of shared logistics networks, either by road with partners such as Cocolis or Shopopop, or by rail with WePost. Private individuals or carriers deliver parcels on their way to their destination, without any additional transport.
• Delivery to a neighbour’s address: This is an attractive option for customers who are not available to receive their parcel at home. Platforms such as PickMe or Welco identify neighbours who are willing to collect parcels from their neighbours, in exchange for a commission.
• Low-speed (or green) delivery: Some e-tailers offer this service for customers who are willing to wait. The orders are combined before being delivered. This maximises vehicle loading rate and reduces journeys and the emissions of CO2 and fine particles. The orders can also be delivered by cargo bike to your home.

E-commerce delivery methods are multiplying.

What are consumers’ delivery expectations?

As explained above, the lack of a preferred delivery method is the third main reason for order abandonment (among shipping-related reasons).
It is therefore important to take a closer look at consumers’ expectations when it comes to this issue.

The preferred delivery methods of European online consumers:
According to the Sendcloud study mentioned above:

1. 50% of Europeans prefer standard delivery, followed by:
2. express delivery,
3. planned delivery,
4. in-store delivery,
5. and eco-friendly delivery.

Delivery to a pick-up point is only in 6th place, just ahead of delivery to lockers.

However, there are differences from country to country.

• The French make delivery to a service point their second choice for delivery.
• The Italians also have their own particular method of delivery: cash on delivery. This option allows them to pay for their goods only on delivery.

The preferred shipping options (data from Sendcloud).

We recommend that you offer at least 1 delivery method, in addition to standard delivery, to satisfy your prospects’ needs.

But as we mentioned in our introduction, the delivery experience also has an impact on future purchases. So you should also take this into account when choosing your delivery method.

The choice of transport company based on user experience

European e-consumers have no obvious preference for one carrier over another. However, they often choose national carriers: Colissimo, Chronopost, FedEx, DHL, UPS, Amazon, etc.

Beyond national preference, European consumers are attentive to their user experience. Surprisingly, speed and cost of delivery are not their main criteria when choosing between 2 carriers. They are more interested in tracking options and on-time delivery.

The friendliness of the drivers and the delivery time slots offered should also not be overlooked.

The tracking and delivery services offered are therefore key factors in the choice of delivery and the placing of orders.

At AntsRoute, we offer e-retailers a delivery system that triggers the sending of notifications and tracks the shipment. The end customer can then plan, confirm, reschedule and track the delivery with complete autonomy.

AntsRoute links for rescheduling and tracking a delivery.

What are the advantages and conditions of the different delivery methods?

When choosing your delivery methods, you need to pay particular attention to the type of products you offer and the different expectations of your customers.

Bulky or high-value products

For this type of product, we recommend planned delivery or delivery by appointment. It offers real security for both you and your buyers. It can easily be combined with installation or assembly services, which are often essential when delivering furniture or household appliances.

Emergency products or last-minute orders

Europeans are prepared to wait an average of 3 days for delivery.

But some orders, such as spare parts or health products, are more urgent than others, and we are now used to being delivered quickly.

For an additional delivery fee, you can offer express delivery.

The average price accepted per shipment depends on the value of the order. It can be as high as 7.50 euros for orders over 150 euros.

Paradoxically, consumers have become accustomed to free shipping above a certain order value. But they are more willing to accept these costs if they want faster delivery. However, this “acceptance” will depend on your business and the practices of your competitors.

The maximum amount consumers are willing to pay for shipping of an order (data from Sendcloud).

Buyers who need flexibility when it comes to picking up their products

Service point or Click and Collect delivery can be a good choice for this category of buyer. However, they may be constrained by limited opening hours or service points that are too far from their home.

Offering delivery to automatic lockers or to neighbours is an interesting alternative for busy customers.

Buyers with an eco-friendly conscience

Low-speed (or green) delivery is an interesting solution for reducing transport costs and satisfying committed consumers. Remember to highlight the CO2 emissions saved, as well as the economic benefits.
Collaborative delivery and delivery to a neighbour’s address avoid the need for extra transport. They can therefore also be promoted as a relevant environmentally-friendly option.

As an online retailer, you need to offer a variety of delivery options to satisfy your customers’ needs, while taking into account the unique characteristics of your products.
At AntsRoute, we are well aware of these challenges, so we have developed a dedicated solution for e-commerce deliveries: vientchezvous.com. It integrates directly into your website. It allows your customers to choose a delivery type, date and time slot. You can also invite them to fill in a number of custom fields. They can then access an online calendar to manage and, if necessary, cancel or reschedule their deliveries. It’s the perfect tool to provide easy response to your e-consumers’ need for flexibility.