Retail Delivery Trends in 2024: Things to Watch for in Omnichannel, Quick Commerce and Last Mile

2024 is here, and the retail delivery ecosystem is not just changing — it’s racing into a new era. The seamless blend of online browsing and in-store shopping, where orders arrive almost instantly and feel tailor-made, has transitioned from a futuristic fantasy to today’s reality, redefining retail as we know it.

We’re just getting started, too. The expectation is no longer to provide customers with a service; but rather, with an experience.

In this piece, we’re not just observing these changes from the sidelines. We’re diving headfirst into them, exploring how savvy businesses are using these trends as a springboard for growth and innovation. Welcome to the front lines of 2024’s retail delivery transformation.

Omnichannel Trends 

Omnichannel retailing is revolutionizing shopping by merging online and offline worlds. The numbers don’t lie — it’s a results-driven strategy with tangible benefits. First, it leads to customers spending 4% more in-store and 10% more online. Moreover, it significantly boosts customer retention, with companies seeing 89% retention, compared to just 33% for those less adept at omnichannel. It also drives in-store visits, contributing to about 80% of them. Brands excelling in this area also have a 9.5% annual revenue increase, far outpacing the 3.4% growth of those with weaker strategies. Who said brick-and-mortar was dead?  

Unified Commerce: Omnichannel on Steroids 

The evolution of retail has brought us to a critical juncture where unified commerce becomes the backbone of a successful omnichannel strategy. Unified commerce goes beyond integrating digital and physical platforms; it creates a singular, cohesive shopping experience across all customer touchpoints, from mobile apps to in-store visits.

The two pillars of this retail strategy — personalization and consistency — are game-changers. Personalization strategies, which leverage customer data for tailored and engaging interactions, are highly valued by consumers. Emplifi reports that 66% of consumers will share personal data if it leads to an enhanced shopping experience. Simultaneously, consistency across channels establishes trust and reliability in the brand. SuperOffice highlights this impact, noting that companies emphasizing customer experience improvement see a 42% increase in customer retention and a 33% rise in satisfaction.

Inventory and Supply Chain Optimization

The combination of centralized inventory management, agility and the integration of AI and analytics are proving indispensable for modern, responsive supply chains. Centralized inventory systems ensure uniform product availability across all channels, a critical factor in omnichannel retailing. Agile supply chain models, vital for adapting to rapid market changes, are enhanced by low-touch planning, which can improve gross margins by 1-3%, according to KPMG Global.

Integrating AI and analytics into these systems further ties it all together by enabling more accurate decision-making and logistical efficiency. A case study showcasing OneRail’s impact on omnichannel distribution highlights a product manufacturer’s transition to OneRail’s automated system, which led to an anticipated savings of $13 million over three years, a remarkable 97% on-time delivery rate and a record of zero failures. 

Emerging Technologies in Omnichannel Retail

Now, let’s take a closer look at five emerging technologies serving as the engines behind the growth of omnichannel retail:

  1. Augmented Reality (AR) and Virtual Reality (VR) in Shopping: These technologies are changing the game in retail by enabling customers to visualize products in lifelike virtual environments. AR and VR not only boost engagement but also aid customers in making more informed purchasing decisions.
  2. Mobile Apps and Social Media Integration: With the increasing use of smartphones and social media, these platforms have become essential in omnichannel retail strategies. They offer unique opportunities for personalized marketing and customer interactions, making shopping more accessible and engaging.
  3. Smart Lockers and Pickup Points: These innovative solutions provide customers with flexible and convenient options for collecting their purchases. Smart lockers and designated pickup points enhance customer convenience and streamline retailers’ distribution process.
  4. Personalized AI Recommendations: AI-driven algorithms help offer personalized product recommendations to customers. This technology analyzes shopping patterns and preferences to tailor the shopping experience, increasing satisfaction and loyalty.
  5. IoT and Connected Devices: The Internet of Things (IoT) connects various devices and systems, allowing for a more cohesive and responsive retail environment. It includes everything from smart shelves that monitor inventory in real time to connected fitting rooms that enhance the in-store experience.

Quick Commerce Trends  

In a world where time is precious, quick commerce, or q-Commerce, has stepped up, delivering customer satisfaction in as little as 30 minutes. Yet this lightning-fast service isn’t just a trend — it’s a booming business, with the U.S. quick commerce market raking in over $21 billion in 2022 alone. Moreover, consumer priorities reflect this surge in demand, with 93% of online shoppers in the U.S. emphasizing the importance of shipping options.

Consumer Expectations for Speed

The explosive growth in same-day delivery from 70 million parcels in 2022 to potentially 260-521 million by 2027 clearly indicates the shifting consumer expectations for speed in e-commerce. This surge is part of a broader trend where quick delivery is not just a service but a decisive factor in customer loyalty. In 2022 alone, slow shipping led 53% of consumers to abandon their purchases. The importance of speed continues post-purchase, as 61% of consumers are more likely to revisit an e-commerce retailer following a satisfactory delivery experience. In comparison, if an item’s delivery exceeds its promised ETA by more than two days, 69% of consumers are less likely to shop with the retailer again.

Technological Innovations Driving Quick Commerce

Technological advancements are revolutionizing quick commerce, particularly in order fulfillment and logistics. Automated order fulfillment, using technologies like barcodes and robotics, streamlines the ordering, picking, packing and shipping processes and results in faster turnaround times and fewer errors. AI and machine learning are also optimizing logistics, with McKinsey highlighting their potential to improve logistics costs by 15%, reduce inventory levels by 35% and boost service levels by a significant 65%.

At the same time, 2024 is shaping up to be a landmark year for drone and autonomous vehicle delivery. For instance, in seven states and 36 stores, Walmart’s drone delivery service has impressively completed over 10,000 deliveries and partnered with Alphabet-backed drone provider Wing. Moreover, major players like 7-Eleven, Ali Baba, Amazon, DHL, Domino, FedEx and Google are also exploring and embracing drone delivery. 

Business Adaptations for Quick Commerce

Businesses are also evolving to keep pace with quick commerce through strategic partnerships, urban warehousing solutions and customized delivery options. Strategic partnerships, like Sephora and Best Buy’s collaboration with Instacart for same-day fulfillment, address the supply chain’s need for agility and scalability. At the same time, urban warehousing is reshaping retail logistics by efficiently bridging the gap between storage and delivery in city centers. The growing trend of micro-fulfillment centers in these areas epitomizes this by bringing an agile, smarter approach to quick deliveries in densely populated areas.

Finally, offering customized options like one-day or same-day shipping, alongside sustainable choices, is now a mainstay. This shift, fueled by AI and machine learning-enabled dispatch technologies, allows for precision in meeting customer demands and turning ambitious delivery goals into achievable realities.

Last Mile Trends 

Finally, let’s turn our attention to last mile trends that have evolved to reshape the industry. This evolution is not just redefining delivery logistics; it’s also making a significant impact on customer satisfaction.

Efficiency in Last Mile Delivery

Route optimization software, empowered by machine learning, is revolutionizing efficiency in last mile delivery. This technology, adept at analyzing traffic, significantly streamlines delivery routes. OneRail’s machine learning-based route optimization exemplifies this, offering up to 20% savings on fuel costs. Moreover, it refines carrier selection, shortens delivery times and boosts overall operational efficiency. The AI in these systems also excels in forecasting and circumventing potential delivery issues, ensuring both punctuality and reliability in the delivery process.

Enhancing Customer Engagement in Last Mile

Enhancing customer engagement in the last mile increasingly focuses on real-time tracking and personalized delivery experiences. Nearly 3 out of 4 consumers view delivery tracking as a crucial aspect of their shopping experience, valuing the control and satisfaction it brings. Additionally, the rise of predictive analytics in last mile delivery could become a significant trend, influencing future decision-making and enhancing customer engagement even further. Personalization is also key, with about 73% of e-commerce logistics companies emphasizing better customer communication to improve their experience. It’s an approach that goes beyond simple updates and recognizes the importance of creating a multi-dimensional experience with cognitive, emotional, behavioral, sensory, physical and social elements.

Sustainable and Smart Last Mile Solutions

Sustainability in last mile delivery is gaining momentum, led by electric vehicles (EVs) slashing CO2 emissions and energy usage by 30%-50% and reducing delivery costs by 25%. Additionally, adopting local fulfillment centers could reduce last mile emissions by 17-26% in major cities. This shift is timely, as 40% of consumers call for greener delivery options, aligning well with the projected 78% surge in last mile delivery demand by 2030, increasing the number of delivery vehicles in 100 cities worldwide by 36%.

At the same time, further integrating IoT in last-mile logistics is steering the sector toward a more sustainable future. IoT’s role extends beyond mere efficiency; it’s transforming delivery into an eco-conscious process. Real-time GPS trackers, sensors and cameras analyze traffic, weather and historical data, identify the most eco-friendly routes, and offer instant insights into packages to ensure maximum efficiency.

Beyond 2024: Shaping the Future of Retail and E-Commerce

2024 heralds a major shift toward creating an engaging, seamless shopping experience. Whether it’s the continuous integration of online and physical realms or technological advancements like AR, VR and AI, emphasizing quick commerce and speed, businesses must decide: adapt or get left behind.

OneRail is making this decision easier than ever with serious solutions and services catering to diverse industries. We stand out with our massive network of over 12 million couriers, enabling many delivery choices. At the heart of our service is the OmniPoint™ Platform, a marvel of technology ensuring timely, cost-effective deliveries with smart features like automated rate shopping and instant updates. Handling delivery issues is one of our signature strengths, with Exceptions Assist™, a 24/7 exceptions management team of logistics pros. And our API-first approach makes  integrating with your existing systems a breeze, so your delivery coordination and fleet management run more smoothly than ever.

Now is your chance to roll with the punches and get a jump start on the future. Schedule a demo today to see how OneRail can transform your business’ delivery strategy.


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