The Effect of Last Mile Delivery Performance on E-Commerce Customer Loyalty

Abstract

This study investigates the impact of last-mile delivery performance on customer loyalty in the e-commerce sector. Using a quantitative research approach with data collected from 386 e-commerce customers, we examine how delivery speed, delivery accuracy, and return handling influence customer loyalty. Multiple regression analysis reveals that all three independent variables significantly predict customer loyalty (R² = 0.672, p < 0.001). Delivery accuracy emerged as the strongest predictor (β = 0.412, p < 0.001), followed by return handling (β = 0.298, p < 0.001) and delivery speed (β = 0.247, p < 0.001). These findings provide valuable insights for e-commerce retailers and logistics providers seeking to enhance customer retention through improved last-mile delivery performance. The study contributes to the growing body of literature on e-commerce logistics and offers practical implications for strategic decision-making in supply chain management.