4
E-commerce fights back: So do home delivery costs and consumer expectations
For executives, home delivery remains a drag on profitability. Associated costs have skyrocketed, nearly
doubling over a 12-month period (figure 3).
To address this rising burden on the last-mile delivery front, shippers have boosted their focus on the total cost
per order (83% say cost reduction is a top priority for last-mile), speed of delivery, and pace of fulfillment, while
taking some of the attention off reducing split shipments and returns and improving accuracy.
Three-quarters of shippers are considering some form of customized service.
Q: Is home delivery accretive to your profitability,
as compared to in-store transactions?
FIGURE 3: IMPACT OF HOME DELIVERY ON PROFITABILITY AND CHANGE OF HOME DELIVERY COST
Source: AlixPartners Home Delivery Survey, 2023
Q: How do you find your delivery cost on a
per-package basis changed year over year (YOY)
5%
39%
18%
Accretive
Don't know / unsure
Dilutive
Neutral Increased
Unchanged
Decreased
38%Accretive 79%Increased
17%
4%
RUNAWAY HOME
DELIVERY COSTS
MULLING IN-STORE
PICKUP OR ALREADY
OFFERING IT
ARE WHITE-GLOVE
DELIVERY
CONSIDERING
SCHEDULING A 4-HOUR
DELIVERY WINDOW OR
ALREADY OFFERING IT
CURBSIDE
42% 35%
37% 33%