Sustainable last mile delivery alternatives: Influencing factors and willingness to use

Abstract

E-commerce deliveries have grown significantly in the last decade, generating increased environmental impacts. While e-commerce grows, there is a need to integrate sustainability into its operations, especially concerning last-mile deliveries. Our goal is to understand the factors influencing consumer decision-making when selecting delivery alternatives. We examine consumers’ preferences using stated preference data collected in the United States. Respondents evaluated delivery alternatives, including operational and behavioral attributes. Interestingly, disclosing the environmental impact of each option does not influence consumer decisions. However, disclosing the delivery vehicle type does matter. The analyses reveal that consumers’ willingness to use sustainable options depends on their receiving additional benefits, varying across socio-economic profiles. Furthermore, elasticities and substitution rates confirm that consumers are willing to pay for convenient deliveries and are reluctant to make behavioral changes. These insights should be used to incentivize the use of sustainable alternatives for last-mile deliveries. We close the paper with recommendations to key stakeholders in urban areas.