The True Cost of Last-Mile Delivery — and How to Fix It

Last-mile delivery is where profits vanish or multiply. For most retailers and marketplaces, it’s the most expensive and complex mile of the customer journey. Factory Market OS helps businesses turn that cost center into a competitive edge—using automation, routing intelligence, and data-driven logistics to deliver smarter, faster, and more profitably.

Understanding the Hidden Costs Behind Every Delivery

Every delivery chain is built on countless micro-decisions: distance, timing, fuel, and coordination. Each factor adds hidden costs that scale with volume. Factory Market breaks this pattern by unifying delivery, payments, and data—cutting inefficiency at the source.

Through Fast, companies track routes and performance in real time. ShopShop integrates sales with delivery data, while Factory OS powers predictive analytics for cost optimization. Together, they reduce waste, improve accuracy, and turn logistics into a measurable advantage.

Report

2025 Logistics Optimization & Profitability Report

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Examining the Factors That Drive Delivery Costs

While distance and fuel drive expenses, the real challenge lies in inefficiency. Missed coordination, idle fleets, and fragmented data make delivery unpredictable and expensive. Automation solves this by transforming guesswork into precision. From an operational view, last-mile success depends on visibility. Factory Market integrates couriers, merchants, and customers into one transparent flow—where every route, delivery, and payment is tracked to the second. When companies invest in delivery technology, they’re buying control over their margins. Efficiency compounds daily, turning every on-time delivery into revenue, reputation, and long-term customer loyalty.

“We used to spend hours managing drivers manually. Now Fast automates everything—from dispatch to delivery confirmation. Costs dropped 20%, customers are happier, and we finally see profit per route.”

Will Umana, CEO & Owner Tweet

Essential Metrics for Delivery Efficiency

When analyzing last-mile logistics, Factory Market focuses on performance indicators that define profitable operations:

R (Routing) – Optimizes distance and delivery sequence.
S (Speed) – Measures average completion time per order.
A (Accuracy) – Tracks delivery confirmation and SLA compliance.
C (Cost) – Monitors spending per route versus earned revenue.

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