Essential Guide to Last Mile Delivery Tracking for Improved Efficiency

Last-mile deliveries could make you feel like the end of the world, as anything can go wrong: delays, packages missing, address errors, damaged items, missed deliveries… What’s worse, most customers blame retailers for the poor experiences.

Besides, the last-mile delivery costs accounted for 53% of shipping expenses in 2023, up from 41% in 2018 (Statista). Yes, the costs are also chipping away at your profit.

All this means that you shouldn’t take a hands-off approach. Instead, you should keep an eye on it with last-mile delivery tracking!

What is Last Mile Delivery Tracking? 

Last-mile delivery tracking, or last-mile carrier tracking, lets customers see exactly where their package is during the final stretch of its journey, from the local distribution center to their doorstep.

It is the most exciting (and sometimes nerve-wracking) part of online shopping. As the package is getting closer, your customer’s expectations build up.

Imagine it’s lunchtime, and you’ve just ordered takeout. You’re so hungry, and you keep refreshing the delivery app to see if your food is getting any closer.

You watch the map as your driver zigzags through the city, hoping he’ll be at your door any second. Time seems to slow down when you’re eagerly waiting for that magical “delivered” notification.

Customer anticipation is the same in e-commerce. When they order online, they crave that same real-time visibility.

Last-mile delivery tracking gives them exactly that: their package’s current status, estimated arrival times, delivery notifications, and even proof of delivery (like a photo of the package at their door).

How Does Last-Mile Delivery Tracking Work?

Last-mile delivery tracking is a collaborative process involving retailers, logistics carriers, drivers, and customers. It’s as necessary as the rhythm for a song—without it, the whole delivery experience can fall flat!

To give you a bigger picture, here’s what makes last-mile tracking tick (and keeps your customers from singing the blues):

1. Handoff to the Last-Mile Carrier

Not every logistics carrier goes the extra mile—literally! Shipping companies like YunExpress, 4PX, Cainiao, and Yanwen hand off your packages to a local last-mile carrier for final delivery.

The local carrier generates new tracking numbers, and its team manages fleets zipping around town, plans the most efficient delivery routes, and ensures accurate deliveries of every parcel.

2. Driver Assignment and Route Optimization

Once the package is in the hands of the last-mile carrier, the real magic begins.

Advanced technology steps in to match each delivery with the right delivery driver.

Meanwhile, smart route optimization helps improve delivery schedules and minimize costs by factoring in traffic, delivery windows, and special requests.

It’s like a GPS-powered relay race, making sure every handoff is smooth and speedy.

3. Real-Time Tracking and Updates

From the moment your package leaves the hub, the tracking magic begins. Each scan updates the system, whether it’s being loaded onto the delivery van, en route, or minutes from arrival.

Nowadays, most customers can get real-time tracking updates via email, mobile apps, or SMS. What’s more, things are made easier with two-way communication between the driver and recipient.

All this means that there is no more panic about “Where’s my order?” but total peace of mind.

4. Flexible Delivery Options: Parcel Lockers and PUDO Points

Modern carriers know that life isn’t always 9-to-5. That’s why they offer flexible delivery options:

• Parcel Lockers: Secure, self-service lockers in public spots. Customers get a code and can pick up their package whenever it suits them.
• PUDO Points (Pick-Up/Drop-Off): Local shops or partner locations where customers can collect or return parcels, perfect for anyone who’s always on the go.

5. Customer Preferences and Delivery Instructions

Today’s last-mile tracking lies in personalization. Customers can leave delivery instructions like “leave the package at the back door” or “deliver after 5 PM.”

Some carriers even let customers update these preferences mid-delivery to make the experience as smooth as possible. After all, it’s all about making sure every delivery hits the right note.

Benefits of Last-Mile Delivery Tracking for Businesses

Last-mile delivery is the grand finale of the e-commerce experience, and final-mile delivery tracking is the star of the show. According to 55% of customers, tracking builds their trust in a brand.

Here’s why last-mile tracking can transform your business:

1. It Reduces Delivery Anxiety

After clicking “purchase,” customers are often left wondering, “Where’s my order?” Real-time delivery tracking puts their minds at ease.

With live updates from dispatch to doorstep, customers stay in the loop every step of the way. No more anxious waiting—just clear, reassuring updates right to their phone.

2. It Minimizes Delivery Disputes

More deliveries mean more chances for things to go wrong. Did you know nearly 26% of Americans have experienced package theft, and 19% of packages end up at the wrong address?

Last-mile carrier tracking helps tackle these issues head-on by providing real-time tracking information and proof of delivery—think photos, signatures, and exact drop-off times. This transparency helps resolve disputes quickly and keeps customer trust intact.

3. It Boosts Customer Satisfaction

Nothing sours a shopping experience faster than a lost or delayed package. With last-mile tracking, customers can actively monitor their deliveries and feel empowered throughout the process.

Reliable tracking and consistent communication from purchase to delivery create a smoother, happier customer journey.

And if there’s a delay, you can immediately offer a discount or compensation, turning a potential negative into a positive.

4. It Cuts Down on “Where’s My Order?” (WISMO) Inquiries

Customer service teams know the pain of endless “Where’s my order?” calls and emails. Last-mile tracking takes that weight off their shoulders.

Customers can check their order status themselves, leading to fewer support tickets and a more efficient team.

Plus, mobile notifications keep everyone updated, further reducing the need for anxious follow-ups.

5. It Encourages Repeat Business

A smooth delivery experience doesn’t just end with a happy customer—it brings them back for more. Last-mile tracking creates a memorable post-purchase journey, keeping customers informed and engaged.

When shoppers know they can count on your brand to deliver (literally!), they’re more likely to return for their next purchase. Real-time tracking information and an easy-to-use branded tracking page help build loyalty and trust.

Without last-mile tracking, businesses are left guessing, and customers are left worrying.

No matter your company’s size, the right tracking solution can strengthen your logistics, delight your customers, and set your brand apart in a crowded marketplace.

Improve Last-Mile Delivery Experience with ParcelPanel

With a wave of exciting updates rolled out in 2024, ParcelPanel now boasts a robust suite of last-mile tracking features—empowering you to deliver an even more seamless, transparent, and delightful customer experience from order to door.

• All-in-One Tracking: ParcelPanel brings delivery updates to life by syncing tracking information from over 1,500 carriers. Even after your package switches hands to a last-mile carrier, your customers can still follow every step in real-time, all with the original tracking number. (Learn More）
• Shipping Notifications: Our order tracking system offers a series of alerts to notify customers during the last mile. Your customers will receive a notification when their package is “Out for delivery,” a “Ready for pick-up” alert if it’s sent to a PUDO point, and a reassuring “Delivered” message once it reaches its destination.
• Worry-Free Delivery: Give your customers the option to add shipping protection to their orders. Protect them from package loss, delays, damage, and porch piracy. If anything goes wrong, we quickly compensate your customers and keep their experience world-class. The best part? You can offer this without spending a dime.
• Branded Tracking Experience: ParcelPanel offers a consistent brand experience by incorporating your logo and other assets on the tracking page. You can also use this page to engage customers with AI-powered or personalized recommendations.
• Estimated Delivery Date: ParcelPanel helps you better manage customer expectations by providing an estimated delivery time. Customers feel more at ease when they know when to expect their orders.

Final Words

The delivery experience during the last mile can make or break your relationship with customers, as it is critical for ensuring packages reach their final destination.

This crucial phase is when customer expectations are at their highest, so you can’t afford any slip-ups. Are you ready to tackle the key challenges of last-mile delivery and transform your customer experience?

Use tracking technology like ParcelPanel to level up your last-mile delivery and reduce delivery errors. With real-time updates, shoppers stay informed about their orders at every step. It’s an easy way to make the whole experience smoother and more reliable for everyone.

For more e-commerce services and tools, visit Channelwill. From marketing automation to 24/7 support, the platform offers an all-in-one solution to help grow your brand and improve the delivery process.