Ways Covid Will Affect Last-Mile Delivery This Winter Season

COVID has changed the way people have been living their lives. People are restricted to elbow pumps instead of hugs. Parks are emptier than ever. And shopping now requires you to swipe on your mobile screens while sitting on the couch.

A report by Accenture suggests that COVID is going to impact last-mile shipping in different ways. Here is what you may want to know about it.

Increased online orders

2020 has been a year of the rise of online shopping. This change in buying habits was triggered by the newly introduced SOPs that caused a lockdown situation across the globe. There has been an overall increase in online orders in the USA and Canada by 88%, as stated in the report.

In this scenario, around 43% of consumers say that they would rather opt to shop online to buy online gifts instead of heading to brick and mortar stores.

Reluctance to visit brick and mortar stores

While it has been a while since the world is facing COVID, it remains one of the topmost concerns. Due to lockdowns in several regions throughout Europe and the USA, there is no chance for people to go out and shop from physical stores. In several regions where there is no lockdown, people remain reluctant to visit physical stores.

With people considering ordering online to e-commerce stores, the retail industry is having its bad days. This year has seen 26 retailers from across the world filing for bankruptcy.

It means that our buying habits, on a whole, have changed quite a bit. Nearly half of consumers said that they had bought less this year compared to all previous years. And those who shop are doing it online.

Higher expectations from customers

Although there is a crisis-like situation in the shipping industry due to the pandemic and a resulting surge in online orders, almost all consumers expect perfect service.

E-Commerce giants like Amazon have made people expecting immediate fulfillments and two-day shipping, and that too at no additional costs. About 65% of consumers say that they look for minimum prices with no shipping charges before adding items to their carts. It means that whether or not you offer free or flat rate shipping can affect your bottom line because nine out of ten customers will consider it a deciding factor.

Pressure on couriers

The general rule of thumb in holiday shipping is to plan for the worst and be surprised by the best outcome. Both you and your customers are going to be happy when the package arrives several days before time. Late delivery, on the other hand, is going to cause disappointment.

In September, FedEx announced to hire 70,000 new employees to meet rising demands caused by the expected surge in holiday shipping orders. UPS has also announced to hire 100,000 new employees for the season. All these pointers suggest that the time ahead is going to be a bit challenging not only for the couriers but also for medium and small businesses as the shipping costs are going to be quite high this year.