Last Mile Delivery Dilemma in E-Commerce

Abstract: E-commerce has been growing in Sweden over the years. It has not only contributed to economy, but also has shaped people’s way of living, especially with the service of home delivery. Consumers enjoy the various choices of products with reasonable prices and the convenience of receiving parcels with a single click on the mouse or by using their phones. Meanwhile, the problem of not-at-home and repeated delivery have caused trouble for both consumers and logistic service providers leading to an increase in delivery cost. Therefore, it takes a lot of cooperation and innovations to come up with solution which will both convenient to customer and 3PL providers, which we call ‘last mile delivery’.This thesis was written with purpose of evaluating the solutions used to address the not at home problem of last mile in e-Commerce. Moreover, the thesis seeks find out which of these solutions are preferred by customers and the impact of these solution on customers. The thesis focuses on the Swedish customers because they have more experience buying online.In this thesis we first established a literature review of E-commerce, E- Shoppers preference of last mile delivery, last mile delivery concept, last mile logistics solution (not at home) which we came up with a theoretical framework by examining the impact of last mile delivery. In order to answer the research questions a focus group discussion and nine interviews were carried out focusing mainly on professional and non professional customers in Sweden. The study identified that apart from home delivery, the customers in Sweden mainly use Collection Points in online shopping. Some other delivery methods such as automated locker banks and controlled home access exist but still in early stage. After analyzing the literature review, current solutions and empirical findings, the study concluded with three potential solutions to solve not at home problem. These solutions are - Secured room at residential building to drop parcel, Automated Locker Bank and Collection Points more closer to residential area.