Skip to content
MarketScale
‹ Back to Industries

Retail

Last Mile Delivery Divides Retail Industry

One of the great challenges to a retailer adapting to a seamless omnichannel shopping experience is shipping, and one leg of it in particular. Last mile delivery accounts for the final stretch from a local delivery hub to a customer’s door. Through prophecies of doom and gloom, retail shopping has evolved rather than died out…

This story was produced through MarketScale. See how Retail teams put it to work with Sales Enablement.

Share
Last Mile Delivery Divides Retail Industry

One of the great challenges to a retailer adapting to a seamless omnichannel shopping experience is shipping, and one leg of it in particular. Last mile delivery accounts for the final stretch from a local delivery hub to a customer’s door. Through prophecies of doom and gloom, retail shopping has evolved rather than died out over the last few years. While brick and mortar growth has kept steady at 6 percent over the past decade, online shopping is rocketing at 47 percent growth over the same period with some forecasters seeing a multi-trillion-dollar market by 2021.[1]

With that growth in mind, retailers of all sizes are ramping up last mile delivery solutions to keep pace with competitors.

Much of the driving force around competition for that last mile comes from differentiation in a world of e-commerce. Consumers have numerous local options and countless more online, so retailers that can deliver promptly and with excellent service are poised to gain and build on brand loyalty.

The omnipresent Amazon Prime has made free delivery a standard, complicating an already maddening logistical nightmare. In short, retailers are scrambling to cut down their shipping times while ignoring the cost in the short term.[2]

The cause of last mile delivery costs are numerous and vary on the destination. In suburban settings, drivers may face long routes with only a handful of deliveries at each stop while urban drivers face traffic congestion and tightening regulation around temporary parking and noise complaints.[3]

Currently, small and midsize retailers can guarantee shipping within two weeks. Pressure from consumers and well-established competitors are pulling that timeline toward a week or less which merely exacerbates the current challenges.

For now, larger retailers are shouldering the costs and pushing ahead to build last mile systems. On-demand and crowdsource solutions are growing in popularity, combining the agility of Uber with the consumer data of a retail chain.

Amazon Key has grown to nearly 40 cities, allowing drivers to deposit packages without a resident necessary, cutting down on costly and time-consuming return visits.[4] While they are not doing so yet, many observers see advantages of smaller retailers sharing data or even systems to consolidate, boosting effectiveness and minimizing costs.[5]

In the short-term the challenge of last mile delivery lies in the unknown. While costs pile up and companies patch together ad-hoc solutions, a definitive cure is for now, out of reach. Many companies are banking on strong, costly service now to pay off in consumer loyalty down the line.

New to MarketScale?

MarketScale is the platform Retail companies use to turn their own experts into content like this. Want the short overview?

Free workspace

You just read one expert. Imagine publishing your whole team.

This article was produced through MarketScale. Create a free workspace and turn your own team's expertise into articles, video, and social posts. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Retail Insights

B2B ecommerce pulse: AI agents, marketplace expansion, and digital investment drive mid-2026 momentum

B2B ecommerce pulse: AI agents, marketplace expansion, and digital investment drive mid-2026 momentum

B2B ecommerce is accelerating into the second half of 2026, driven by concrete AI deployments, marketplace expansions, and measurable gains from digital investment. The global B2B ecommerce market reached $20.4 trillion in 2024 and is forecast to hit $36.1 trillion by 2031, providing the macro backdrop for a string of notable mid-year developments. Kawasaki Engines USA's reported 500% average-order-value increase and Global Industrial's 9.2% Q1 sales growth illustrate the real-world stakes of getting digital infrastructure right.

  • 01Kawasaki Engines USA reported a 500% increase in average order value through its B2B ecommerce channel, according to Digital Commerce 360's coverage of Salesforce Connections 2026.
  • 02The global B2B ecommerce market reached $20.4 trillion in 2024 and is projected to reach $36.1 trillion by 2031, per Grand View Research via Creatuity.
  • 0372% of organizations reported adopting AI in at least one business function in 2025, up from 55% in 2023, according to McKinsey's State of AI report.

Jun 18, 2026

Zero-click commerce arrives: AI agents set to intermediate $15 trillion in B2B purchases by 2028

Zero-click commerce arrives: AI agents set to intermediate $15 trillion in B2B purchases by 2028

Gartner predicts that AI agents will intermediate $15 trillion in B2B purchases by 2028. As a result, businesses will need to reconsider their approaches to data management, discovery, and digital infrastructure. This shift indicates a significant transformation in how B2B transactions are conducted using AI technology.

  • 01AI agents will manage $15 trillion in B2B purchases by 2028.
  • 02Businesses must revamp data, discovery, and digital infrastructure.
  • 03AI technology is changing the landscape of B2B transactions.

Jun 17, 2026

Zero-click commerce: AI agents set to intermediate $15 trillion in B2B purchases by 2028

Zero-click commerce: AI agents set to intermediate $15 trillion in B2B purchases by 2028

A Gartner projection cited by commercetools places $15 trillion in B2B purchases under AI agent mediation by 2028, pushing procurement entirely past the traditional vendor storefront. Adobe Digital Insights data shows AI-referred traffic already converts 42% more often than non-AI visits as of March 2026 — a full reversal from a year earlier. Together, the figures signal that agentic and AI-assisted commerce have moved from pilot phase to structural infrastructure priority for B2B organizations.

  • 01Gartner forecasts AI agents will intermediate $15 trillion in B2B purchases by 2028, according to commercetools — compressing the timeline for commerce infrastructure upgrades.
  • 02Adobe Digital Insights found that AI-referred traffic converted 42% more often than non-AI traffic in March 2026, reversing a trend from just one year prior.
  • 03Only 18% of B2B companies describe their AI commerce maturity as 'advanced,' according to Boston Consulting Group, leaving most organizations exposed to fast-moving competitors.

Jun 17, 2026

Explore More Retail Insights

Read more expert perspectives from across Retail.

Browse Retail Hub