In-house delivery with the right technology gives customers a great delivery experience without breaking the bank, while still having control over your brand. Â
Customers want convenience, precision, and speed in a world where the demand for fast food, instant retail shopping, and quick e-commerce deliveries is growing.
Businesses have relied on third-party platforms like Uber Eats and DoorDash for years. But these platforms come with hefty commissions and limited brand control.
The question then becomes, when should you consider bringing delivery in-house?
What Does In-House Delivery Really Mean?
When a business takes full control of the delivery process, the last mile is no longer outsourced.
Software is designed to help businesses make processes easy and automated. It includes order processing, delivery drivers, logistics, and customer communication.
Difference Between Third-Party Delivery and In-House Models
Third-Party Delivery
With third-party delivery, you have high visibility and low setup costs. They handle all the admin for you, without you stressing about whether there are enough drivers.
However, many businesses also decide against it because of expensive commissions and limited data ownership.
In-House Delivery
You have full control over your brand, drivers, last mile, customer experience, and communication. What you put in will come out.
It leads to better profit margins and customer loyalty over the long term.
Signs It’s Time to Bring Delivery In-House
How about the best time to switch over to in-house delivery? Ask yourself these questions and test whether it’s time.
A: Commission fees are rising.
B: Your profit is shrinking
C: You get more order volumes per day
D: Your business is growing, and you want to scale
E: You are worried about your brand image
F: Customers are complaining about their experience
If you have answered yes to most of these questions, it’s time. Let’s break it down in more detail now.
7 Reasons Why In-House Delivery Is Best
Reason 1: Rising Commission Fees and Reduced Profits
Third-party delivery platforms often charge commissions ranging up to 30%. That can bite your profit margin, especially when you lack funding.
By bringing delivery in-house, businesses can eliminate these hefty fees.
Reason 2: Control Over Customer Experience and Brand Consistency
Late deliveries harm your brand. Last-mile delivery is the most transparent process in the supply chain, and doing it right matters most to your brand.Â
When third-party drivers handle orders, they might get damaged or arrive late at customers’ doors.
Route optimization software can be used instead to ensure your in-house drivers arrive on time.
Reason 3: Increased Order Volumes Make Scaling Easier In-House
During peak season, delivery demand is unpredictable. Sometimes there is a sudden spike, and the delivery process is in full swing.
In other years, consumer spending has decreased, and your business has not been as busy as expected.
You can easily scale as the volume increases, but remember, you’ll have to pay the drivers for the day, whether they have enough work.
Reason 4: Higher Profit Margins and Cost Efficiency
The real benefit of in-house delivery is controlling the efficiency of your operations. With your own drivers and the right technology, you can optimize routes, reduce failed deliveries, and pack orders more efficiently.
Route optimization ensures drivers complete more stops in less time. This helps to save more fuel and improve delivery density. Every successful first-attempt delivery means fewer repeat trips.
This way, you can invest more in the customer experience and staff.
Reason 5: Ownership of Customer Data and Insights
Every business person needs to know their customers. When you outsource your delivery, you never own the customer data. How will you truly understand your customers?
It limits your understanding of how often they order and their delivery preferences. Managing it in-house means you own the data. You can track buyers’ behaviour, analyse delivery performance, and shape future promotions.
Owning the customer data means you can make smarter decisions.
Reason 6: Stronger Brand Loyalty and Customer Relationships
Last-mile delivery is often the only time customers interact face-to-face with your brand.
Controlling the last mile helps you to control the impression that lasts the longest.
Making sure the delivery drivers are consistent with on-time, professional, and extraordinary experiences creates stronger loyalty.
Reason 7: Flexibility in Menu, Pricing, and Promotions
In-house systems allow you to make quick adjustments. However, having third-party platforms on board can restrict how customers view your products.
It influences the promotions you can choose to run, and even how the prices are set.
When your fleet is managed by the best software, you can test a new menu item, launch a same-day offer, or instantly reward loyal customers with a discount.
NOW READ: Everything you need to know about last-mile delivery
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
