Everything You Need to Know About Last-Mile Delivery

As a retailer, you might not believe you have any control over last-mile delivery.

But you actually do.

You are responsible for several factors that can contribute to how quickly a parcel is delivered. Missing even one of the steps can delay its delivery, leading to unhappy customers and potentially additional charges from the courier company.

In this article, we’ll dive into the details of last-mile delivery, how it works in Australia, the challenges retailers face, and how to optimise the final stage of delivery. You’ll also find practical tips to help get your parcels into customers' hands faster.

Some of the key topics we'll be covering include:

1. What is last-mile delivery?
2. Last-Mile Delivery and Logistics Explained
3. What’s Involved in the Last-Mile Process?
4. Last-Mile Delivery Tracking and Status Updates
5. How Last-Mile Tracking Works In Australia
6. What Are the Challenges of Last-Mile Delivery?
7. Who Are the Final Mile Carriers in Australia?
8. Last-Mile Delivery Challenges and Trends
9. Last-Mile Route Optimisation and Technology
10. The Benefits of an Effective Last-Mile Delivery Strategy
11. What Is the Last-Mile Problem?
12. What Are the Costs of Last-Mile Delivery?
13. How Can You Avoid Last-Mile Delivery Delays?
14. How to Get Started

Let’s jump in.

1. What’s Involved in the Last-Mile Process?

Last-mile delivery refers to the final step in the fulfilment journey. It’s when the parcel leaves a distribution point and is delivered to the recipient’s address. In Australia, this stage is commonly referred to as the final mile.

It’s the most critical part of the delivery process. Both couriers and retailers delivered as quickly as possible, but this speed comes at a cost. As a result, last-mile delivery is widely considered the most expensive stage of the logistics chain.

For ecommerce retailers, this is also the stage customers interact with the most. Delivery timing, tracking updates, and proof of delivery all shape how customers perceive your brand after checkout, making the final mile a key post-purchase experience.

2. Last-Mile Delivery and Logistics Explained

Last-mile delivery sits within the broader logistics process and represents the final link between a warehouse or transport hub and the customer’s door.

While earlier stages focus on bulk transport and long-distance movement, last-mile logistics is centred on speed, accuracy, and local delivery efficiency.

In Australia, last-mile logistics is particularly complex due to long distances between cities, a mix of metro and regional deliveries, and varying courier coverage across states. Parcels typically move from fulfilment centres to transport hubs, then to local depots, before being delivered by a final-mile carrier.

With that context in mind, let’s look at how the last-mile process works in practice.

3. What’s Involved in the Last-Mile Process?

The last-mile process is well-defined, with each step playing an important role.

Order Is Placed

Your customer places an order through your online store. You then prepare the parcel for collection by a courier company.

Parcel Arrives at Shipping Warehouse

The package is grouped based on destination and service type. Depending on where it is going, it may be transferred between facilities, reaching a local delivery depot.

Package Is Assigned

Parcels are assigned to delivery drivers based on route planning, delivery schedules, service level and vehicle capacity.

Item Is Loaded Onto the Truck

Parcels are scanned and loaded into delivery vehicles. These scans enable real-time tracking and reduce the risk of parcels going missing.

When tracking shows “In Transit”, it means the parcel has been picked up by the courier and has entered the delivery network.

Delivery Is Completed

The driver delivers the parcel and records proof of delivery, such as a photo or a signature.

If tracking updates to “Out for delivery”, the parcel has left the local depot and is with the final delivery driver, and is expected to be delivered that day. Once delivered, the status updates to “Delivered”.

4. Last-Mile Delivery Tracking and Status Updates

Last-mile tracking gives retailers and customers visibility into where a parcel is during the final stage of delivery. Most Australian couriers use simple, standard tracking updates to communicate progress.

Common last-mile tracking statuses include:

• In transit: The parcel is moving through the courier’s network or between depots.
• Out for delivery: The parcel is on board with the driver and scheduled for delivery.
• Delivered: The parcel has been successfully delivered to the recipient.

If a parcel remains as “In Transit” for longer than expected, it often means it is waiting for the next available delivery run, especially during peak periods or in high-volume delivery zones.

These updates reflect how parcels move through local delivery networks across Australia.

5. How Last-Mile Tracking Works In Australia

From there, parcels are scheduled onto delivery routes based on postcode, delivery density, and driver availability.

Metro areas like Sydney, Melbourne, and Brisbane usually see faster last-mile movement due to higher delivery volumes and denser courier networks. Regional and remote areas may experience longer transit times due to fewer delivery runs and greater distances between stops.

6. What Are the Challenges of Last-Mile Delivery?

While the process seems simple, several factors make last-mile delivery complex, particularly in Australia.

After 9.4 million households made an online purchase in 2022, parcel volume reached record highs. Courier networks continue to manage increased demand while dealing with rising operating costs.

Lost Parcels

Missing deliveries and unattended parcels can drive up costs through reattempts and replacements. Clear tracking updates help customers plan ahead and reduce delivery failures.

Returns

Australia Post found that 26% of shoppers returned a product in 2023. Reverse logistics can double shipping costs and place additional strain on fulfilment operations.

Weather Events

Floods, fires and severe storms can disrupt delivery routes and delay final-mile deliveries. Clear communication with customers is essential during these events.

Final mile delays can still occur during busy periods, even when parcels are prepared correctly. Local delivery schedules can fill up quickly when networks are under pressure.

The courier handling the final mile plays a major role in how these challenges impact delivery outcomes.

7. Who Are the Final Mile Carriers in Australia?

Australia’s final mile carriers are the couriers responsible for delivering parcels to the customer’s address.

• Australia Post
• StarTrack (standard and express services)
• CouriersPlease
• Aramex
• FedEx (express services)
• UPS (express international services)

Final mile carriers are responsible only for the last stage of delivery, even if another transport partner handled earlier legs of the journey.

Australia Post typically offers the widest coverage across metro, regional, and remote areas.

CouriersPlease and Aramex are commonly used for cost-effective metro deliveries, while StarTrack, FedEx, and UPS are often selected for faster or time-sensitive services.

Rather than relying on a single carrier, many ecommerce retailers use multiple couriers to balance speed, cost, and coverage. This approach helps reduce delivery risk, especially during peak periods or when certain networks are under pressure.

8. Last-Mile Delivery Challenges and Trends

Last-mile delivery continues to evolve as retailers and couriers respond to rising customer expectations and cost pressures.

Key trends shaping last-mile delivery include:

• The adoption of electric delivery vehicles in metro areas to reduce emissions and fuel costs.
• The growth of parcel lockers and collection points.
• Same-day and on-demand delivery services.
• Increased focus on sustainability and carbon reduction.
• Smarter route planning to reduce delivery attempts and delays.

9. Last-Mile Route Optimisation and Technology

Technology plays a major role in improving last-mile efficiency and reducing costs. Couriers use a combination of tools to optimise routes and delivery schedules.

Common technologies include:

• Route optimisation software that clusters deliveries efficiently.
• Real-time GPS tracking and dynamic delivery ETA’s.
• Automated sorting systems in depots.
• Delivery apps that guide drivers and capture proof of delivery.
• Multi-carrier shipping platforms that help retailers select the most suitable service.

These tools help couriers minimise delays, reduce fuel usage, and improve delivery accuracy.

When these tools are applied effectively, retailers see measurable improvements across the final mile.

10. The Benefits of an Effective Last-Mile Delivery Strategy

An effective last-mile delivery strategy benefits both retailers and customers.

Faster deliveries

Understanding which factors you can influence helps parcels arrive on time.

Happier customers

Reliable delivery builds trust, leading to positive reviews and repeat purchases.

Increased sales

Consistent delivery experiences encourage customer loyalty.

Higher revenue

Reducing delays, returns, and surcharges improves profitability.

Efficiency gains

Automation tools tracking updates save time and improve visibility throughout the final mile, making the entire post-purchase experience smoother and more transparent.

11. What Is the Last-Mile Problem?

The primary challenge of last-mile delivery is balancing speed and cost. As customer expectations rise, so do fulfilment expenses.

Rural deliveries face long distances and limited delivery runs, while metro areas deal with traffic congestion and scheduling constraints.

12. What Are the Costs of Last-Mile Delivery?

According to Deloitte, last-mile delivery accounts for as much as 30 to 35% of the total delivery cost.

Additional charges may apply for: remote-area postcodes, oversized parcels that need handling, or missed delivery attempts. These costs add up quickly, so monitoring closely helps retailers protect their margins.

13. How Can You Avoid Last-Mile Delivery Delays?

Here are practical steps retailers can take to reduce delays.

1. Regularly review tracking updates to identify stalled deliveries.


2. Validate delivery addresses before booking shipments.


3. Ensure items comply with courier restrictions.


4. Attach labels clearly and securely.


5. Provide customers with estimated delivery timeframes.


6. Choose services suited to parcel size, weight, and destination.


7. Understand courier service areas and strengths.

If a parcel remains marked “in transit” longer than expected, it usually means it is queued for the next available delivery run. If you need assistance, our customer service team is available to help.

14. How to Get Started

Last-mile delivery will remain a challenge as customer expectations grow and fulfilment costs rise. By streamlining operations and applying these strategies, retailers can reduce delays, manage costs, and improve customer satisfaction.

Need help optimising your fulfilment strategy? Speak to our team. They’re available via phone, live chat and email.