How Are Final-Mile Delivery Costs Calculated?

How is the Last-Mile Delivery Fee Calculated?

In today's rapidly developing e-commerce and logistics industries, the last-mile delivery fee has become a topic of common concern for both consumers and merchants. Especially on e-commerce giants like JD.com and Meituan, the last-mile delivery fee not only relates to cost control for merchants but also directly affects consumers' shopping experience. So, how exactly is the last-mile delivery fee calculated? This article will discuss this issue in detail based on relevant reports.

The last-mile delivery fee refers to the cost incurred during the final leg of transportation when goods are delivered from the logistics center or sorting point to the consumer's hands. It typically includes delivery personnel wages, vehicle usage costs, fuel fees, and other possible service charges. For example, in some cities, due to traffic congestion or complex delivery areas, delivery personnel need to spend extra time and effort, which can affect the pricing of the last-mile delivery fee.

According to an article in the China Logistics and Purchasing Magazine, the calculation of the last-mile delivery fee is mainly influenced by several factors

Firstly, the delivery distance is one of the key indicators determining the last-mile delivery fee. Generally speaking, the farther the delivery distance, the higher the delivery cost. For instance, an e-commerce platform once revealed that its standard for the last-mile delivery fee increases by a certain amount per kilometer, making the delivery cost in remote areas significantly higher than in downtown areas. The economic development level of different cities also affects delivery fees. For example, in first-tier cities where labor costs are high, the last-mile delivery fee is generally higher than in second and third-tier cities.

Secondly, order quantity and weight are also critical factors affecting the last-mile delivery fee. When there are more orders or individual items are heavier, delivery personnel need to exert more physical effort and time; therefore, platforms usually adjust the delivery fee based on order volume and weight. For example, it was reported that a food delivery platform charges higher delivery fees for large orders during peak hours to balance the workload and earnings of delivery personnel.

Moreover, changes in policies and regulations also impact the last-mile delivery fee. In recent years, the state has increased its oversight of the express delivery industry, requiring companies to improve service quality and protect the legitimate rights of delivery personnel. Against this backdrop, many platforms have adjusted their last-mile delivery fee structures to adapt to the new market environment. For instance, a well-known e-commerce platform announced that part of the last-mile delivery fee would be used to subsidize social security and benefits for delivery personnel, thereby enhancing job satisfaction among delivery personnel.

Besides the above factors, technological advancements are also changing the way last-mile delivery fees are calculated. With the application of big data and artificial intelligence technologies, many logistics enterprises can now predict delivery demand more accurately and optimize delivery routes, thus reducing last-mile delivery costs. For example, a logistics company introduced an intelligent scheduling system, achieving efficient matching between orders and delivery resources, effectively reducing empty mileage and inefficient deliveries, and consequently lowering the last-mile delivery fee.

It is worth noting that the transparency and reasonableness of last-mile delivery fees are receiving increasing attention from the public. Recently, some consumers have reported unreasonable phenomena regarding last-mile delivery fees on certain platforms, such as significant differences in delivery fees under identical conditions for different users. In response, relevant regulatory authorities have intervened in investigations and required all platforms to publicly and transparently display the basis for calculating last-mile delivery fees. For example, a food delivery platform responded that it will optimize algorithms in the future to ensure that each user pays a fair and reasonable last-mile delivery fee.

In conclusion, the calculation of the last-mile delivery fee is a complex systemic project involving multiple variables and factors. Whether it is delivery distance, order volume, policy regulations, or technical means, they all influence the final result of the last-mile delivery fee to varying degrees. For consumers, understanding the composition of the last-mile delivery fee helps them better judge whether the price is reasonable; for merchants and platforms, they need to continuously optimize delivery processes to reduce operating costs and enhance customer satisfaction. In the future, with further technological advancements and changes in the market environment, the calculation method of the last-mile delivery fee is expected to become more scientific and transparent.