Who Usually Bears the Final-Mile Freight Costs?

Who Typically Bears the Cost of Last-Mile Delivery Fees?

In the logistics industry, last-mile delivery refers to the final leg of transportation from a distribution center or hub to the end recipient's location. This stage is crucial for optimizing supply chain efficiency and controlling costs, making the party responsible for last-mile delivery fees a focal point of attention. So, in practical operations, who usually pays for last-mile delivery fees?

From a traditional logistics perspective, the payer of last-mile delivery fees is typically the e-commerce platform, the merchant, or the consumer. For example, in the e-commerce sector, when a consumer places an order, the platform assigns it to a corresponding logistics service provider to complete the delivery. In this case, last-mile delivery fees are generally prepaid by the e-commerce platform or the merchant, which are then passed on to consumers through product prices or other means. While this approach is straightforward, it also means that merchants must bear certain financial pressures and may impact their profit margins.

In recent years, with the development of cross-border e-commerce and the growth of international express services, the division of responsibilities for last-mile delivery has become more complex. Especially in cross-border trade, where differences in customs duties, tax policies, and other issues exist between multiple countries and regions, determining which party should pay for last-mile delivery often becomes a key negotiation topic. Some large e-commerce platforms, such as Amazon and Alibaba, have begun to explore integrated solutions, where the platform takes full responsibility for all logistics stages, including first-mile and last-mile transportation, incorporating related expenses into product prices. This simplifies transaction processes and reduces communication costs among participants.

It is worth noting that with the infiltration of the sharing economy concept into the logistics industry, crowd-sourced logistics models are gradually emerging. Under this model, last-mile delivery work can be completed by individual drivers, part-time couriers, or even ordinary citizens using their own vehicles to transport packages. Since these service providers typically charge only a low-level service fee, the actual burden of last-mile delivery fees may be further dispersed.

To meet growing environmental requirements and challenges posed by technological advancements, an increasing number of companies are exploring the use of new tools such as drones and autonomous vehicles for last-kilometer delivery. Although these technologies are still in the experimental phase, they are expected to significantly reduce last-mile delivery costs and change the existing market landscape in the future.

In conclusion, in today’s rapidly changing business environment, the responsible party for last-mile delivery fees is no longer limited to a single role traditionally understood. Whether it is the e-commerce platform, the merchant, or the consumer, all need to adjust strategies flexibly based on their positioning and market demand to jointly promote the entire logistics system toward greater efficiency and convenience. At the same time, relevant departments should strengthen regulatory efforts to ensure that all stakeholders fairly and reasonably share the cost of last-mile delivery, promoting the healthy and sustainable development of the entire industry.