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Last mile

| Article: 3 min read | Payment and delivery

The last mile is the final stage of delivery: from the carrier's warehouse or sorting center to the customer's hands. It is the most expensive and least predictable stretch of an order's journey: the address, the time, whether someone is home and whether the parcel is refused all depend on the customer.

Why it is talked about

The latest open global estimate: according to the Statista Research Department, the last mile's share of total shipping costs grew from 41% in 2018 to 53% in 2023 (page updated 14.02.2024) (Statista). There is no fresher measurement with an open primary source, and other estimates online range from roughly 30% to 65% depending on what is counted, so treat 53% as an order of magnitude. There is no separate open data on the last mile's share for Ukraine.

Ukraine's last-mile network is growing fast. At the end of 2025 Nova Poshta delivered 522 million shipments (8.8% more than a year earlier), and at the start of 2026 it had 34,186 parcel lockers and 15,817 branches (Forbes Ukraine, 21.01.2026). For a store this means a parcel locker is already a mass way to receive goods, not an exotic one. The company does not give the share of deliveries to lockers in this material.

For the customer, delivery is also the main reason to give up on an order. According to Baymard (page updated 22.09.2025, survey year not stated), among the reasons for cart abandonment (excluding those who were "just browsing"): 40% is extra costs, including shipping, 20% is delivery that is too slow, 12% is not being able to see the full order cost upfront (Baymard). See cart abandonment.

What last-mile options exist

According to Nova Poshta, the customer can receive a parcel:

  • at a branch: free storage for 5 days, 30 days in total, and the goods can be inspected before paying (storage, FAQ);
  • at a parcel locker: the parcel stays there for 5 days, then moves to a branch for up to 30 days; goods cannot be inspected at a locker (parcel locker, FAQ);
  • at an address from a courier: the address can be changed within the city or across Ukraine until the parcel reaches its destination (parcel locker).

For a store, the choice of delivery methods affects order cost, speed and the share of unclaimed parcels (cash on delivery and unclaimed parcels).

What raises the cost of the last mile

  • Uneven order density: distant addresses, single shipments.
  • Failed deliveries and refused parcels: each means an extra trip or a return.
  • A promise of free or super-fast delivery that the store pays for itself.
  • Product returns (returns).

How a store can work with the last mile

  1. Show the full cost and delivery time before checkout, not at the last step.
  2. Offer a choice: branch, parcel locker, courier.
  3. Count delivery cost in unit economics and compare it with the average order value.
  4. Track the share of unclaimed parcels by delivery method.
  5. If the warehouse is someone else's, agree on lead times with the operator (fulfillment).

Example (made-up numbers)

Average order value is 1,200 UAH, one-way delivery is 80 UAH. If the store offers free delivery from 1,500 UAH, and the customer adds an item worth 300 UAH to reach it, the store gets a bigger order but pays for delivery itself. Whether it pays off depends on the margin of the added item: work it out.

FAQ

What is the last mile in plain words? The last stretch of a parcel's journey: from the local branch or warehouse to the customer.

Why is the last mile the most expensive? According to Statista's latest open estimate, worldwide it was 53% of delivery cost (2023 data). The reasons: scattered addresses, failed deliveries, waiting for the customer.

What is better: branch, parcel locker or courier? It depends on your goods and customers. Compare the cost to you and the convenience to the customer rather than choosing blindly.

How do I cut last-mile costs? Do not promise free delivery without calculating, reduce unclaimed parcels, show the delivery cost upfront.

Sources

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