Retail last mile delivery: speed up shipments and cut costs

Retail last-mile delivery is the final step in getting products to customers. While supply chain issues have eased slightly, challenges still exist. Shipping delays and stock shortages trickle down to the end customer.

For retailers focused on customer satisfaction, products can't sit idle on shelves, stockrooms, or shipping docks. Fast turnover and efficient delivery are essential to keeping customers happy and maintaining sales. A well-run shipping and receiving (S&R) operation makes sure goods move quickly through the supply chain.

In this article, we’ll discuss the challenges of retail last-mile delivery and explore solutions that improve efficiency and cut costs.

What is retail last mile delivery?

Retail last-mile delivery refers to getting a product from a distribution center, store, or warehouse to the customer’s doorstep. It’s the most expensive and time-consuming part of fulfillment and often determines whether a customer is satisfied or frustrated with their order.

The global last-mile delivery market was valued at approximately $ 161.20 billion in 2024 and is projected to reach $373.92 billion by 2033.

One challenge in last-mile delivery is balancing speed and cost, especially with less-than-truckload (LTL) deliveries. Sending out a partially filled truck increases vehicle wear and tear and raises operational expenses, including fuel and labor. But waiting to fill an entire truck can lead to longer delivery times, which customers don’t want.

Curri is a logistics platform that simplifies retail last-mile delivery by offering flexible, on-demand shipping solutions. With a nationwide network of drivers and carriers, Curri helps retailers move goods efficiently while keeping costs low.

With Curri, booking and managing LTL freight is simple. The platform provides:

• Seamless Rate Shopping: Compare LTL rates from 100+ nationwide carriers to find the best price.
• Tracking: Get shipment updates to make sure visibility at every stage.
• Transparent Pricing: Avoid hidden fees with upfront costs, preventing budget surprises.
• All-in-One Delivery Management: Handle LTL and last-mile deliveries from a single, easy-to-use dashboard.

Here are the freight options Curri offers:

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Key challenges in retail last mile delivery

Retailers face the following obstacles in making sure fast and cost-effective last-mile delivery:

High delivery costs

LTL shipping typically ranges between $0.15 and $0.30 per pound ($0.33 to $0.66 per kg), but rates vary based on distance, carrier, and shipment type (pallet or skid). These expenses add up quickly, especially for retailers managing frequent deliveries.

Slow delivery due to traffic and route issues

Traffic congestion is a major hurdle in retail last-mile delivery, especially in urban areas. In 2019, cities like Boston, Chicago, Philadelphia, and New York City saw drivers lose 140 to 149 hours annually sitting in traffic. These delays increase fuel consumption and frustrate customers waiting for their orders.

Retailers must invest in smart route planning and alternative delivery methods to minimize delays.

Customer demand for faster shipping

Studies show that 24% of consumers consider same-day shipping crucial, while 28% prioritize next-day delivery. 

Additionally, 46% of consumers are willing to pay extra for same-day delivery, but if a retailer’s shipping options can’t meet those expectations, they risk losing sales to competitors. Still, meeting these demands can strain a retailer’s budget and workforce. 

Inefficient returns management

A poor return experience can drive customers away for good. About 89% of consumers say a bad return process will stop them from buying from a retailer again. That's a huge problem in an industry where loyalty matters.

Returns are also far more common for online purchases, with 20-30% rates compared to just 8.89% in physical stores. Online shoppers can’t see, touch, or try products before buying, leading to more dissatisfaction and higher return rates. If a retailer’s last-mile delivery is smooth but their return process is a mess, they’re still at risk of losing business.

Retailers need efficient reverse logistics, where returned items are quickly processed, restocked, or resold.

Limited delivery coverage in some areas

There’s often a struggle to reach every customer efficiently with retail last mile delivery. The challenge varies depending on how deliveries are handled.

• Retailers with their own fleet: If you manage deliveries in-house, expanding to new areas means higher costs—more drivers, fuel, vehicle maintenance, and logistics planning. 
• Retailers using third-party delivery partners: Your delivery partner might not cover all the regions you need. Some couriers focus on high-density urban areas but lack coverage in rural or remote locations.

To address this, retailers can look for flexible LTL courier solutions that balance cost and coverage. 

Benefits of LTL retail delivery

Here are the key advantages of using LTL retail delivery for last-mile logistics:

Faster retail courier deliveries

In 2024, consumers expect fast shipping to mean delivery within 3.1 days on average for non-grocery items. Meeting this demand is tough, especially when major retailers like Walmart now offer same-day delivery to 93% of U.S. households. Competing with these giants requires efficiency, and that’s where LTL retail delivery helps.

With LTL couriers, retailers can move goods more frequently without waiting for full truckloads. Instead of delaying shipments until a truck is full, businesses can ship smaller loads to meet customer expectations.

Higher customer satisfaction

While speed is important, not every shopper needs their order immediately. Around 90% of consumers are willing to wait two to three days for delivery (especially if it helps them avoid shipping costs).

LTL retail last-mile delivery helps by offering frequent shipments without needing full truckloads. This means fewer delays, better inventory turnover, and more reliable delivery windows.

Increased sales

The connection between retail last-mile delivery and revenue is undeniable. 72% of customers who are satisfied with their delivery experience are likely to spend 12% more with the same retailer. 

Even small improvements in delivery speed make a difference. Reducing delivery times by just one business day can increase online sales by an average of 1.45%. 

Reduced shipping costs

LTL is the most budget-friendly choice for retailers looking to cut costs without sacrificing reliability. Instead of paying for an entire truckload, retailers can ship smaller loads at a fraction of the cost. This reduces expenses while still ensuring frequent deliveries.

Curri makes it even easier to compare costs. The image below highlights delivery options, including Rush, Same-Day, Scheduled, and LTL services. 

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Better inventory management

Frequent deliveries help retailers maintain leaner inventory levels and reduce storage costs. For example, increasing delivery frequency from one to four daily shipments can cut stock levels from 12 to just six units. 

With smaller, more frequent shipments, retailers can optimize supply chains without waiting to fill a full truckload. 

Sustainability benefits

Retail last-mile delivery is a major contributor to urban pollution, accounting for up to 30% of city traffic-related emissions.

LTL retail delivery helps cut emissions by optimizing vehicle capacity and reducing the number of trips needed to move goods. Instead of sending out half-empty trucks, LTL consolidates shipments from multiple retailers. This means fewer vehicles on the road, lower fuel consumption, and a reduced carbon footprint.

Strategies to speed up LTL courier shipments

While LTL courier shipments are cost-effective, they are sometimes slower than full truckload (FTL) options. To stay competitive, retailers need strategies that improve shipping speed without significantly increasing costs. 

Crowdsourced delivery solutions for retailers

Crowdsourced delivery services transport shipments on demand using a network of independent drivers and third-party couriers. Unlike traditional freight carriers, these platforms connect businesses with available drivers who can fulfill deliveries quickly and efficiently.

Here’s how crowdsourced LTL delivery helps:

• Matches shipments with available drivers, reducing wait times.
• Businesses can book deliveries as needed rather than waiting for a full truckload.
• Retailers compare rates across multiple providers to find the best deal.

Platforms like Curri provide retailers with access to a nationwide network of 100+ LTL providers, helping them find the fastest and most affordable shipping option.

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Route optimization

Poor route planning leads to unnecessary delays, increased fuel consumption, and higher operational expenses. 

Businesses that use delivery route planning software have seen fuel expenses decrease by up to 20%. These tools use real-time traffic data, AI-driven logistics, and GPS tracking.

Curri provides a fully-featured route planner that runs like a well-oiled machine for retailers. Here’s how it works:

Discover Curri's intuitive route planning software

Micro-fulfillment centers

Traditional fulfillment models rely on large, centralized warehouses that often sit hundreds of miles from customers. Smaller businesses must rethink their logistics strategies with major retailers now offering same-day or next-day delivery as the standard. 

Micro-fulfillment centers (MFCs) are small, localized warehouses designed to store high-demand products closer to customers. They help speed up LTL courier shipments by reducing the distance between inventory and final delivery points. 

Curri’s express LTL delivery streamlines shipping and receiving

Curri is an integrated logistics and courier platform for retail last mile delivery. We work directly with retailers on delivery loads of all types, including LTL delivery. Retailers who work with Curri don’t get caught having to balance customer satisfaction against the excessive costs of last-mile LTL delivery.

We can help you streamline your S&R process. We are available on demand for retailers to handle their last-mile service. The service is available Monday through Sunday, 6 AM to 10 PM nationwide, so you can make sure your customers have the materials they need when they need them.

Want to simplify your shipping? Work with Curri and keep your business running smoothly. Sign up today!

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