The Role of Last-Mile Delivery Quality and Satisfaction in Online Retail Experience: An Empirical Analysis

Abstract

The rise of the e-commerce industry has markedly changed the global economy, providing customers with unparalleled access to goods and services. This study empirically examines online shoppers’ perceptions and preferences, focusing on their experiences with last-mile delivery (LMD) services and its impact on their shopping behaviour. This research employs machine learning classification and regression models for a large-scale analysis of customers’ responses, collected using an online survey in the main cities in Saudi Arabia, which is experiencing rapid e-commerce growth amidst a broader digital transformation. The findings highlight a strong consumer preference for timely LMD services, typically within a day of purchase, while noting dissatisfaction with exceedingly early delivery windows. The research emphasises the need to address customer dissatisfaction with delivery services to retain clientele, as many may switch retailers without informing the retailers. Additionally, a considerable trend towards preferring digital over cash-on-delivery payment methods was observed among online shoppers. Overall, this study provides valuable insights into the significant influence of LMD services on customer satisfaction and behaviour in the e-commerce sector. The use of robust machine learning models has revealed critical factors that can guide retailers and LMD providers in enhancing service delivery and customer experience, contributing to the broader discourse on e-commerce logistics efficiency and customer satisfaction.