Reclaiming the Last Mile

In today’s hyper-competitive eCommerce world, the “last mile”—the final leg of a product’s journey to the customer’s doorstep—has emerged as both a critical advantage and a major obstacle for merchants. Consumers expect faster, more personalized, and reliable delivery experiences, and their loyalty often hinges on how well a brand delivers on these expectations.

The whitepaper published by UPS Capital’s InsureShield is based on surveys from 500 U.S. merchants and 1,000 consumers, outlining how last-mile delivery challenges in 2025 are evolving. Key themes include the decline in trust toward gig economy carriers, the growing importance of real-time tracking and customer control, and the increasing cost and complexity of maintaining delivery excellence. It also explores the rising consumer demand for sustainable shipping and how merchants adapt to new technologies and strategies.

Ultimately, the report underscores a major shift: consumers are no longer just blaming carriers for delivery failures but holding merchants accountable. This means brands must take a more proactive, tech-savvy, and customer-focused approach to regain control of the last mile and protect their reputation, revenue, and customer relationships.

Source: InsureShield

📝 “Taking Back Control” publication summary:

The last mile isn’t just a delivery route—it’s the defining moment of your customer’s experience. In 2025, that moment is under more scrutiny than ever. With consumer expectations at an all-time high and the gig economy losing steam, smart merchants are rethinking their last-mile game plan. Here’s what every shipper needs to know to stay ahead.

🚚 Speed Still Reigns Supreme

Fast delivery has officially overtaken low costs and product selection as the #1 factor influencing where consumers shop. For younger generations like Gen Z, 51% say speed tops their list. But this pressure has real consequences—85% of merchants say rising demand for fast shipping has disrupted their operations.

🔍 Visibility Is No Longer Optional

Today’s shoppers want more control and peace of mind. Top perks that increase buying likelihood include:

• Real-time tracking (65%)
• The ability to choose delivery time/day (55%)
• Guaranteed package insurance (50%)

Yet, 36% of merchants cite the cost and complexity of last-mile visibility tools as their top challenge.

📉 Trust in Gig Delivery Is Declining

What once seemed like a game-changer has lost its shine. In 2022, gig carriers were embraced for flexibility—but by 2025, 62% of merchants report more theft, delays, and damage. Consumers are voting with their clicks: 55% now prefer traditional carriers, while only 20% actively choose gig delivery.

🛡️ Blame Is Shifting to Merchants

When things go wrong, shoppers are no longer blaming the carrier. In 2022, 83% blamed delivery providers. In 2025? Just 39%. That means shippers need to own the delivery experience—from dispatch to doorstep.

💸 Delivery Mishaps Are Costing You

It’s not just about replacing a package. Shipping issues now impact brand trust, loyalty, and reviews. A full 42% of merchants say 2–5% of their shipments are damaged, lost, or stolen each quarter. Worse—73% pay out-of-pocket due to weak or denied claims.

🧠 Smarter Strategies to Win the Last Mile

The whitepaper outlines how savvy shippers are taking control:

• Investing in AI-driven route optimization
• Offering personalized delivery options
• Using automated tracking and notification tools
• Protecting shipments with robust shipping insurance
• Balancing speed with sustainability through green carrier partnerships and consolidated deliveries

🌎 Sustainability: The New Expectation

Consumers are demanding greener delivery choices. Over 92% of merchants are willing to pay more to meet this need, yet many struggle with high costs and limited green logistics options. Leading shippers are turning to:

• Eco-friendly packaging
• Localized fulfillment centers
• Route optimization to reduce emissions

🏁 Final Mile, First Priority

The message is clear: last-mile excellence isn’t optional—it’s your competitive edge. Merchants that combine speed, visibility, and protection will stand out in 2025 and beyond. Don’t let delivery disruptions damage your brand. Invest in systems that deliver confidence—at every doorstep.

Sources: UPS Capital | Dynata Research, February 2025

📢 Need a strategic partner? Contact ebb Logistics to consult with experts to help you navigate changes, optimize your shipping strategy, and implement solutions to meet your business goals and objectives.