<?xml version="1.0" encoding="UTF-8"?><item href="/initiatives/supply-chain-research/working_paper-reducing_the_cost_of_last_mile_delivery_new.php" dsn="blogs"><featured/><title>Working Paper | Reducing the Cost of Last Mile Delivery: A Channel Shifting Behavioral Approach</title><description>The increasing prevalence of ecommerce has presented an abundance of challenges for retailers.  Among the most prominent of these is the high cost and operational complexity of home delivery for online purchases. While alternate delivery channels, such as buy online pickup in store, have recently been developed, shoppers still typically prefer the convenience of delivery – particularly when retailers offer it at the low cost and high speed of today’s competitive environment.  In this paper we test the efficacy of two potential methods of shifting consumers’ delivery selection away from costly delivery and toward the much more favorable pickup option – namely sustainability-oriented information labels and monetary discounts.  Our results show that information labels are indeed effective at shaping behavior and are far more impactful than the modest discount retailers tend to offer. Further, we find no evidence of negative second-order effects related to the messages. Thus our work presents retailers with a possible win-win tactic for easing the cost and challenge of ecommerce without losing the patronage of customers.</description><image><img src="" alt=""/></image><author>By Rodney Thomas and Travis Tokar</author><pubDate>05/17/2024</pubDate></item>