December 3, 2025

Mastering last-mile delivery cost: what retailers need to know

Last-mile delivery can make or break the online shopping experience. It doesn’t just shape customer satisfaction; it swallows up 41% of total supply chain costs. For retailers, those costs can drive up prices, shrink delivery options, and chip away at profit margins.
 
In this blog post, we’ll explore what European consumers expect from e-commerce deliveries, break down the real costs behind last-mile shipping, and share strategies to keep customers happy while keeping expenses in check.

What do European consumers want from e-commerce deliveries?

What matters most to European consumers in e-commerce delivery

France leads Europe in Out-of-Home deliveries

France is the clear European champion of pick-up point deliveries. French e-commerce is nearly evenly split between home delivery and out-of-home delivery. As of 2024, about 54% of online orders are delivered to the home, while 46% are delivered via out-of-home options (pickup points, lockers, or in-store click-and-collect). 53% say current delivery time slots are not well adapted to their work/life obligations, making flexibility and the ability to choose convenient delivery windows a top priority.

Dutch shoppers value delivery reliability over speed

In the Netherlands, reliability outweighs raw speed in e-commerce delivery. Shoppers prioritize receiving parcels exactly as promised, in perfect condition, and with careful handling. Low or free shipping is appreciated, but never at the cost of dependable service.

Italian shoppers have the highest expectations for speedy delivery

Italian consumers set a high bar for delivery speed — 61% expect free standard shipping to arrive within two days. While cost is their top priority (28%), speed follows closely, with 23% citing same-day or next-day delivery as most important.

The cost breakdown: where retailers spend the most on last-mile delivery and why so costly

A breakdown of where most retailers spend the most on last-mile delivery
Why is last-mile delivery so costly?
  • Transportation and fuel costs – fluctuating fuel prices, vehicle maintenance, and insurance fees add to the overall cost of operations.
  • Labor and driver wages – hiring, training, and retaining skilled delivery personnel come with substantial costs.
  • Technology and automation investments – route optimization software, real-time tracking, and AI-driven decision-making tools.
  • Customer delivery customization – flexible delivery windows, same-day or scheduled deliveries, and sustainable shipping choices.
  • Few deliveries per stop – fewer packages are delivered within a single route, reducing overall efficiency.
  • City driving – congested city traffic increases travel time and unpredictability.
  • Complex routing – varying delivery destinations and access restrictions require advanced logistics planning.
  • Low route density – deliveries are spread out over a wider area, resulting in longer distances.
  • Failed deliveries – incorrect addresses, recipient unavailability, or security restrictions.

How to optimize last-mile shipping costs while delighting your customers

For both retailers and shoppers, cost is king in last-mile delivery. The challenge lies in balancing competitive rates with healthy profit margins. Here are smart ways to cut expenses without compromising the customer experience:
 
  • Offer multiple delivery options – Give customers control over speed, timing, and pickup locations, allowing them to choose the balance between convenience and cost.
  • Go sustainable – Use eco-friendly methods like electric vehicles or bike couriers, and leverage route optimization to cut fuel costs and appeal to environmentally conscious buyers.
  • Automate dispatching – Adopt tools for real-time tracking, automated assignments, and instant customer updates to reduce errors and boost efficiency.
  • Partner strategically – Collaborate with other last-mile delivery partners to share delivery networks and resources, lowering costs through pooled logistics.
GOFO Last-Mile E-Commerce Delivery

GOFO: Your go-to partner for smart and cost-efficient last-mile solutions

At GOFO, we help retailers master last-mile delivery costs without compromising service quality. You can rely on us to keep your customers satisfied:
 
  • Transparent, competitive pricing – No hidden or complex fees, with rates especially favorable for bulky goods. Save up to 20% compared to the industry average.
  • Flexible delivery options – Customized schedules, including weekends and holidays, to match your customers’ needs.
  • End-to-end notifications – Pre- and post-delivery SMS notifications, real-time tracking to keep your customers well-informed.
  • Reliable, customer-focused service – At least three free delivery attempts per package, backed by a 95% on-time rate and 99.5% successful delivery rate.

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