This report discusses the challenges faced by retailers in providing a superior last-mile delivery experience for their customers without negatively impacting profitability. The research shows that a majority of consumers are willing to pay more for a satisfactory delivery service, but today's delivery models are not profitable as retailers absorb a portion of the cost. The increasing demand for faster and more frequent deliveries, driven by the shift to online ordering, is expected to hurt retailers' profitability. The report explores four areas: consumers' desire for faster and more frequent deliveries, the benefits of last-mile delivery, the challenges faced by retailers, and the opportunities for innovation in last-mile delivery. The report concludes that retailers need to invest in their last-mile delivery capabilities to meet consumers' expectations and maintain profitability.
