Exploring Customer Preferences for Alternative Last-Mile Delivery in E-commerce - A Stated Preference Approach with Payment Considerations

Abstract

Increasing levels of online retail and its associated delivery traffic have led to a rise in inner-city traffic problems. Home delivery, in particular, poses efficiency and sustainability challenges. In order to assess potential solutions, a representative survey on online retail and ordering behavior was conducted in Germany, with a particular focus on the use of different delivery options in online retail and the factors that encourage of discourage the use of such delivery options. The survey also included a stated preference section that examined the delivery options consumers prefer and the conditions under which they would consider alternative delivery options. The aim of the study was to record the willingness of customers to use alternative delivery options, to pay for deliveries and additional services, and to determine the factors that affect this willingness. The results show that people are, in general, willing to use alternative delivery options. Cost, time and distance influence the choice process but individual preferences are strong. The willingness to pay for faster deliveries is low, and customers are reluctant to go pick up their goods away from home