E-COMMERCE  /  SME

By Kawal Preet | May 5, 2025

E-commerce businesses: Discover why mastering last-mile delivery is key to growth, customer retention, and staying competitive in APAC’s fast-moving landscape.

• In APAC’s dynamic e-commerce landscape, consumers expect fast, reliable deliveries, with delays or lost items eroding the customer experience.
• Businesses are adopting smart logistics solutions to unlock last-mile delivery enhancements and drive growth. 
• Near-real-time tracking, AI-powered route optimization, and flexible delivery options are helping businesses manage APAC’s unique last-mile challenges.

Online shoppers, e-tailers: have you ever experienced last-mile delivery anxiety? Symptoms include checking your phone repeatedly, refreshing the tracking page, and worrying about whether to stay home for a delivery – or if your package has arrived safely. There’s also the frustration of a delayed or misrouted delivery.

If you’re an e-tailer or small business, those issues are compounded. Getting the last mile right can spell the difference between earning customer loyalty and losing a valuable sale.

As customers expect faster, more reliable orders, last-mile delivery has become the make-or-break final supply chain hurdle. If you’re a business shipping goods cross-border, it’s essential to grasp how logistics works on the ground in each country. Today’s trade landscape can be very complex to navigate, especially with the rapid changes and evolving market demands.

The last mile is an important consideration for businesses in Asia Pacific, where dynamic growth in e-commerce is reshaping logistics as we know it. At FedEx, we often see that e-tailers excelling in last-mile logistics tend to gain an edge over the competition.

It’s the last mile: What could possibly go wrong?

Last-mile delivery is the final stretch in a shipment’s journey to the customer’s door. While this sounds simple on paper, it’s can be a complex and costly leg of the process.

If you’re shipping in or out of Asia, and particularly intra-Asia, the sheer, sprawling diversity of the APAC region poses its own problems. The diverse intracontinental geography that makes Asia such an exciting travel destination adds layers of complexity to logistics operations.

In megacities like Bangkok, Jakarta, and Manila, traffic congestion is a real roadblock to timely deliveries. If you’re wondering where your package might be, there’s a high chance it’s still stuck in traffic.

Rising urban occupancy also makes delivery complicated. Of the 25 most population dense cities in the world, 13 are in Asia. Manila is the most population-dense city on Earth, with over 111,000 people per square mile. At the same time, the Philippines is one of the fastest-growing e-commerce economies in the world. With so many deliveries and people, that’s a lot for last-mile delivery to get right.

Famously, China is one of the greatest examples of complex last-mile delivery in action. The way Chinese addresses are formulated can be confusing to international shippers. Sender errors in China’s street name and numbering systems often leave delivery companies with undeliverable packages. And this is made all the more tricky to navigate in the cities the size of Shanghai and Beijing, with tens of millions of residents.

For archipelagic nations like Indonesia, the nearest warehouse to your home could be another island over. And many inhabited, outlying islands in Southeast Asia are small enough to be car-free. This means last-mile delivery is done on foot.

Climate change also means Asia Pacific is becoming more prone to super typhoons, flooding, and extreme weather events, which cause severe disruption to logistics networks in vulnerable areas.

Why the last mile matters

One thing last-mile challenges in Asia Pacific do is provide opportunity for businesses to innovate and streamline logistics operations. Ultimately, this improves the overall customer experience and strengthens business resilience.

For logistics providers, the last mile signals the completion of a delivery cycle. But for other players in the supply chain, the last mile is significant in other ways.

For SMEs and e-tailers, in particular, efficient last-mile delivery is all about building customer trust and driving growth. In Asia Pacific, where online shopping is now deeply interwoven in the consumer fabric, customer expectations are at an all-time high. Delayed or missed deliveries damage trust, with loss of repeat business.

Businesses that place value on enhancing last-mile logistics enjoy higher customer satisfaction, more repeat orders, and stronger brand loyalty. After all, when customers receive their orders promptly and reliably, they are more likely to return for future purchases.

For SMEs just starting out, reliable logistics providers can improve your last-mile efficiency. By leveraging their existing technologies and flexible delivery options, customers get more control over when and where they receive their packages.

Enterprises working with FedEx, for example, benefit from tailored solutions such as day-definite delivery, international shipping support, smoother returns, and enhanced tracking features.

Innovations that propel last-mile delivery

The good news? Smart logistics solutions are already transforming last-mile delivery for e-commerce businesses, making it faster, more efficient, and more customer-centric. Platforms that offer near-real-time tracking allow SMEs to provide their customers with live updates on deliveries, improving visibility.

Intelligent route planning and AI optimization tools help delivery drivers outsmart traffic congestion, improving urban delivery times even in busy Asian cities. FedEx ships over 16 million packages a day on average. We collect data on every parcel’s journey – including the last mile – which we use to continually improve the network.

Sensor-based technology allows us to map the last-mile delivery story with pinpoint accuracy – even in Asia’s more remote or rural areas. Our AI-powered Stops Sequencing tool also helps us to optimize delivery routes in real-time based on package volume and customer requests.

Another last-mile solution we’ve introduced is Picture Proof of Delivery, giving customers peace of mind by confirming their package was delivered securely. We’ve also integrated WhatsApp into our communications, allowing customers to connect with us easily and directly.

While these tools enhance customer experience, they also reflect a broader trend toward customer-centric delivery innovations for SMEs across the industry.

Beyond fast deliveries, customers want deliveries tailored to their preferences. And with the reality of climate change, mindful consumers are also exploring eco-friendly delivery options.

Strengthening collaborations between logistics providers, tech firms, and local businesses can unlock smarter last-mile delivery solutions, tailored to Asia Pacific’s unique challenges and changing consumer tastes.

Seeing deliveries through the last mile

The future of supply chains in Asia Pacific hinges on mastering last-mile delivery. By embracing innovation, adopting customer-centric solutions, and leveraging smart logistics technology, businesses can turn last-mile delivery challenges into opportunities for growth.

In a region as diverse and dynamic as Asia Pacific, businesses that invest in smarter, faster, and more sustainable last-mile delivery solutions will stay ahead in the race to win customer trust.