Automating The Last Mile? We Ask Agam Berry, Quantified Commerce

The online retail sector is booming. $2.3 trillion in sales were recorded in 2017, with an estimated increase to $4.8 trillion in sales by 2021. Online shopping is on the rise, and as more and more e-commerce companies enter the market they are going to have to seperate themselves from their competitors. Consumers have a variety of options online, which means that it’s imperative for companies to differentiate themselves in order to compete for a share of the market. One of the biggest variables e-commerce companies are working to improve is last mile delivery. 

Last mile delivery is the movement of goods from a transportation hub to final delivery destination. While this may sound like an inconsequential part of the customer experience compared to the experience of using the website, or advertising, it’s not. IBM published a report that found post-purchase experience and delivery promise can make or break a customer’s relationship with a company. Last mile delivery is crucial and companies are looking for innovative ways to improve both their customer’s experience, and their own delivery infrastructure. 

One way they are doing this is through automation.   

For one automating last mile delivery allows companies to overcome the fact that a majority of Indian customers reside in rural areas. 67% of India’s population lives in rural areas, but a lot of these rural dwellers are also viable e-commerce customers, as the internet use in the country is at 420 million people. This is a problem when it comes to delivery, as rural areas are harder to reach. That’s where technology like drones come into play. Drones have a high rate of reliability when it comes to delivering in rural areas. Drones are automated, which allows for not only a superior delivery mechanism, but also for companies to avoid the cost of sending delivery people to rural areas, far away from the urban centered warehouses and fulfillment centers. 

“You need to improve the user experience to keep them buying from you,” said Agam Berry, co-founder of Quantified Commerce, a company focused on building e-commerce companies in India, “last mile is an essential part, if not the most essential part in the customer experience, since most of the orders are cash on delivery, a delay of one or two days in getting customers their product can lower delivery rates and have a serious impact on the bottom line.” Berry also talked about the importance of automated last mile delivery, specifically when it comes to India, “it’s essential when we’re talking about India. The infrastructure is so poor that it’s crucial to find ways around it.”