Abstract

Purpose: The purpose of this study is to explore last mile delivery practices among large and medium Swedish omni-channel (OC) retailers and e-tailers. Also, the study aims at analyzing what similarities and differences exist between the two types of retailers.

Method: A literature review was carried out in order to gain more knowledge about the topic and develop a theoretical framework, used for analyzing data. Also, a quantitative study was conducted through electronic surveys (secondary data) and website observations (primary data). The 100 retailers were large and medium OC retailers and e-tailers and were selected based on a probability sample. 

Findings: The study has shown that there are plenty of similarities and differences between the two kinds of retailers. Some of the delivery practices and options that OC retailers and e-tailers perform similarly are unattended HD (unattended home delivery), attached C&C (click and collect), drop shipping, free solitary C&C (click and collect). There are also differences between retailers when it comes to attended HD, time slot, eco delivery or LTL-Courier (Less Than Truckload-courier). E-tailers offer more competitive remote deliveries with more free remote delivery options. OC retailers leverage on both store network and remote delivery services. Thus, OC retailers can learn how to cope with e-commerce growth and adapt their delivery services as e-tailers do.

Limitations: This study has a geographical focus on Swedish OC retailers and e-tailers. The data that was collected has been limited to the logistics variables: delivery mode, velocity, time slot, slot price differentiation, delivery fee, eco delivery, picking location, delivery area and transport service.

Theoretical implications: This study is an important step towards contributing to academic theoretical literature regarding last mile delivery practices. Based on the previous frameworks, new logistical variables were added, such as more velocities, delivery fee, eco delivery and drop shipping. These contributions were helpful in the process of exploring characteristics about retailers and how they differ from each other.

Managerial implications: This research is valuable for managers and retailers in order to find the best logistical strategy. It could be beneficial for OC retailers who face challenges that e-commerce brings and compete with e-tailers.

Keywords: Last-mile delivery, Retailing, Omni-channel, E-tailers, E-commerce.

Paper type: Research paper