Eric Mogire*, Peter Kilbourn, Rose Luke
Vol 20 | Issue 1 | 12-30
Abstract
Success in online retailing depends on effective and efficient last mile delivery. Although online retailing in Kenya has considerable potential to ensure sustainable trade and economic growth, progress in this subsector has been inhibited by several problems. Furthermore, existing literature failed to determine the elements of last mile delivery most valued by online customers and how last mile delivery is implemented by Kenya’s online retail market. Therefore, it is necessary to investigate the elements of last mile delivery in Kenya’s online retail subsector from the perspective of customers and retailers. A convergent mixed methods research design was used to ensure a comprehensive study of the research problem. A total of 407 online customers and seven online retailers in Nairobi participated in providing the required quantitative and qualitative data. The findings indicated that attended home delivery points, same-day delivery lead time, and phone call tracking options are most valued by customers and most offered by retailers. There is, however, a discrepancy in the delivery fee options, delivery timeslots, delivery carriers, and return options most valued by customers, and those most offered by retailers. It is recommended that retailers should review alternative delivery fee options, understand the problem with the outsourced delivery carriers, and the returns process to improve their service offerings.
Keywords: Last mile delivery; Online retail; Kenya
References
Brink, B.S. (2018). Challenges faced in last mile e-grocery delivery: a consumer perspective. University of Johannesburg. (Dissertation- MCom).
Cao, Y., Ajjan, H. & Hong, P. (2018). Post-purchase shipping and customer service experiences in online shopping and their impact on customer satisfaction: an empirical study with comparison. Asia Pacific Journal of Marketing and Logistics, 30(2), 400-416. https://doi.org/10.1108/APJML-04-2017-0071
Corvi, D. (2017). A comparison of brick-and-mortar and online last mile delivery networks, Bridgewater State University. (Research project- Undergraduate).
Creswell, J.D. & Creswell, J.W. (2018). Research design: qualitative, quantitative, and mixed methods approaches, 5th edn, SAGE Publications.
Dakora, E. & Rambe, P. (2022). The digital transformation of food and grocery retailing under the Covid-19 pandemic: a case of major South African retailers. The Retail and Marketing Review, 18(1), 59-75. https://hdl.handle.net/10520/ejc-irmr1_v18_n1_a5
eMarketer. (2023). Worldwide ecommerce forecast 2023. Accessed 20 March 2024. https://www.emarketer.com/content/worldwide-ecommerce-forecast-2023
Esper, T.L., Jensen, T.D., Turnipseed, F.L. & Burton, S. (2003). The last mile: an examination of effects of online retail delivery strategies on consumers. Journal of Business Logistics, 24(2), 177-203. https://doi.org/10.1002/j.2158-1592.2003.tb00051.x
Galvin, R. (2015). How many interviews are enough? do qualitative interviews in building energy consumption research produce reliable knowledge? Journal of Building Engineering, 1, 2-12. https://doi.org/10.1016/j.jobe.2014.12.001
Gatta, V., Marcucci, E., Maltese, I., Iannaccone, G. & Fan, J. (2021). E-groceries: a channel choice analysis in Shanghai. Sustainability, 13(7), 3625. Doi:10.3390/su13073625
Government of Kenya (GoK). (2007). Kenya Vision 2030. Republic of Kenya, Government Printer, Nairobi.
Guest, G., Bunce, A. & Johnson, L. (2006). How many interviews are enough? an experiment with data saturation and variability. Field Methods, 18(1), 59-82. https://doi.org/10.1177/1525822X05279903
Halldórsson, Á & Wehner, J. (2020). Last-mile logistics fulfilment: a framework for energy efficiency. Research in Transportation Business & Management, 37, 100481. https://doi.org/10.1016/j.rtbm.2020.100481
Heyns, G.J. & Kilbourn, P.J. (2022). Online shopping behaviour and service quality perceptions of young people in South Africa: a COVID-19 perspective. Journal of Transport and Supply Chain Management, 16, 777. Doi:10.4102/jtscm.v16i0.777
Holdorf, S. & Haasis, H. (2014). Last mile delivery concepts in e-commerce: an empirical approach. In The 8th International Conference on Software, Knowledge, Information Management and Applications (SKIMA 2014) (pp. 1-6). IEEE.
Hongfei, Y. (2017). National report on development of e-commerce in China. Accessed 11 August 2023. https://www.unido.org/sites/default/files/2017-10/WP_17_2017.pdf
Jacobs, K., Warner, S., Rietra, M., Mazza, L., Buvat, J., Khadikar, A., Cherian, S. & Khemka, Y. (2019). The last-mile delivery challenge: giving retail and consumer product customers a superior delivery experience without impacting profitability. Capgemini Research Institute, 27.
Javed, M.K. & Wu, M. (2020). Effects of online retailer after delivery services on repurchase intention: an empirical analysis of customers’ past experience and future confidence with the retailer. Journal of Retailing and Consumer Services, 54, 101942. https://doi.org/10.1016/j.jretconser.2019.101942
Jones, A.L. (2017). Multichannel service offerings: determinants and consequences of fulfillment and returns experiences. Michigan State University. (Thesis- PhD).
Kafile, M. & Mbhele, T. (2023). Improving last mile distribution systems through the internet of things: a South African case. Acta Logistica, 10(4), 597-603. Doi:10.22306/al.v10i4.438
Kenya National Bureau of Statistics. 2019. (2019). Kenya population and housing census. distribution of population by socio-economic characteristics. Accessed 26 April 2023. https://www.knbs.or.ke/?page_id=3142
Kim, J., Kweon, S.J., Hwang, S.W. & Lee, S. (2024). Crowdsourcing integration on the last mile delivery platform considering floating population data. Expert Systems with Applications, 248123312. https://doi.org/10.1016/j.eswa.2024.123312
Klein, P. & Popp, B. (2022). Last-mile delivery methods in e-commerce: does perceived sustainability matter for consumer acceptance and usage? Sustainability, 14(24), 16437. Doi:10.3390/su142416437
Leedy, P.D., Ormrod, J.E. & Johnson, L.R. (2021). Practical research: planning and design, Twelfth edn. global edn, Pearson Education Limited.
Ma, S. (2017). Fast or free shipping options in online and omni-channel retail? the mediating role of uncertainty on satisfaction and purchase intentions. The International Journal of Logistics Management, 28(4), 1099-1122. Doi:10.1108/IJLM-05-2016-0130
Madleňák, R. & Madleňáková, L. (2020). Multi-criteria evaluation of e-shop methods of delivery from the customer’s perspective. Transport Problems, 15(1), 5-14. https://doi.org/10.21307/tp-2020-001
Mogire, E., Kilbourn, P.J. & Luke, R. (2023). Customer satisfaction with last-mile delivery in Kenya: an online customer perspective. Journal of Transport and Supply Chain Management, 17(1), e1-e8. https://doi.org/10.4102/jtscm.v17i0.844
Mogire, E., Kilbourn, P. & Luke, R. (2022). The Last mile delivery problem: a Kenyan retail perspective. Acta Logistica, 9(4), 387-395. Doi:10.22306/al.v9i4.329
Nguyen, D.H., de Leeuw, S.L.J.M. & Dullaert, W.E.H. (2018). Consumer behaviour and order fulfilment in online retailing – a systematic review. International Journal of Management Reviews, 20(2), 255-276. https://doi.org/10.1111/ijmr.12129
Nguyen, D., de Leeuw, S., Dullaert, W. & Foubert, B. (2019). What Is the right delivery option for you? consumer preferences for delivery attributes in online retailing. Journal of Business Logistics, 40(4), 299-321. https://doi.org/10.1111/jbl.12210
Odera, E. (2020). A crowdsourcing model for last mile delivery in Nairobi, Kenya: a case of Roysambu shoppers. United States International University of Africa. (Thesis- PhD).
Oláh, J., Kitukutha, N., Haddad, H., Pakurár, M., Máté, D. & Popp, J. (2019). Achieving sustainable e-commerce in environmental, social and economic dimensions by taking possible trade-offs. Sustainability, 11(1), 89. Doi:10.3390/su11010089
Pahwa, A. & Jaller, M. (2022). A cost-based comparative analysis of different last-mile strategies for e-commerce delivery’. Transportation Research. Part E, Logistics and Transportation Review, 164, 102783. https://doi.org/10.1016/j.tre.2022.102783
Pinecrest, J. (2019). Online shopping in Kenya. Accessed 19 May 2023. https://informationcradle.com/kenya/online-shopping-in-kenya/.
Pollio, A., Cirolia, L.R. & Ong’iro Odeo, J. (2023). Algorithmic Suturing: platforms, motorcycles and the ‘last mile’ in urban Africa. International Journal of Urban and Regional Research, 47(6), 957-974. https://doi.org/10.1111/1468-2427.13200
Saunders, M., Lewis, P. & Thornhill, A. (2019). Research methods for business students, 8th edn. Pearson Education Limited.
Sorooshian, S., Khademi Sharifabad, S., Parsaee, M. & Afshari, A.R. (2022). Toward a modern last-mile delivery: consequences and obstacles of intelligent technology. Applied System Innovation, 5(4), 82. Doi:10.3390/asi5040082
Sousa, R., Horta, C., Ribeiro, R. & Rabinovich, E. (2020). How to serve online consumers in rural markets: evidence-based recommendations. Business Horizons, 63(3), 351-362. https://doi.org/10.1016/j.bushor.2020.01.007
Statista. (2024). eCommerce – Kenya, South Africa. Accessed 19 March 2024. https://www-statista-
com.eu1.proxy.openathens.net/outlook/emo/ecommerce/custom?currency=USD&locale=en&token=HGZCO25OfT9aNcVM9-AB9NEC9zrniSeUZSsB0jjJBy2nMMcYG0iAZeSxrPQuGl443NY-ROEuVcv4b4sAVjBKb3aj9faWasL6gl4%3D
Statista. (2020). Statista Country Reports, Kenya. Accessed 28 August 2022. https://www.statista.com/studies-and-reports/countries-and-regions? idCountry=404&idBranch=0&idLanguage=0&reportType=0&documentTypes%5B%5D=ppt&documentTypes%5B%5D=pdf&documentTypes%5B%5D=xls&sortMethod=idRelevance&p=1
Tan, A. (2016). Overcoming the last mile distribution challenge. part 2 shippers’ perspectives in e-commerce and expectations. Nanyang Technological University.
Tiwapat, N., Pomsing, C. & Jomthong, P. (2018). Last mile delivery: modes, efficiencies, sustainability, and trends. In 2018 3rd IEEE International Conference on Intelligent Transportation Engineering (ICITE) (pp. 313-317). IEEE.
United Nations Conference on Trade and Development. (2022). Kenya eTrade readiness assessment, Accessed 01 April 2023. https://unctad.org/publication/kenya-etrade-readiness-assessment
Velazquez, R. & Chankov, S.M. (2019). Environmental impact of last mile deliveries and returns in fashion e-commerce: a cross-case analysis of six retailers. In 2019 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1099-1103). IEEE.
Wahshat, H.A., Al-Rousan, R., Al-Haithami, W.A., Ahmad Saany, S.I., Mohamad, F.S. & Kumar, R. (2023). Current problems and proposed solutions for the electronic commerce sector. In 2023 International Conference on Computer Science and Emerging Technologies (CSET) (pp. 1-6). IEEE.
Xu, M., Ferrand, B. & Roberts, M. (2008). The last mile of e-commerce–unattended delivery from the consumers and eTailers’ perspectives. International Journal of Electronic Marketing and Retailing, 2(1), 20-38. https://doi.org/10.1504/IJEMR.2008.016815
Zandi, G., Torabi, R., Mohammad, M.A. & Dan, X.Y. (2021). Customer’s satisfaction via online shopping environment: the case of China. Journal of Information Technology Management, 13(3), 16-32. http://10.22059/jitm.2021.83110