Last-mile delivery, the final stretch from warehouse to customer, can account for up to half of total shipping cost in Europe. It is the single hardest segment to keep profitable.
Understanding last-mile economics
This stage carries a disproportionate share of cost: labour, fuel, urban logistics and technology. In Europe, with dense cities, strict regulation and high wages, the last mile can run from €7 to €12 per parcel.
What drives the cost up
High fuel and labour costs, tight parking rules, growing environmental compliance and, above all, failed delivery attempts all inflate the per-parcel price in European markets.
Practical ways to bring it down
Place stock strategically, offer pickup-point alternatives, bundle shipments, validate addresses before dispatch and lean on carrier partnerships. Each lever trims cost without hurting service.
Why partnerships matter
Outsourcing to an established logistics partner brings negotiated carrier rates, route-optimisation technology and economies of scale that an individual retailer simply cannot reach alone.
The last mile will always be expensive in Europe, but data-driven choices, flexible delivery options and the right logistics partner make a real difference to your bottom line.
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