Last mile

Last mile is the final stage of logistics: moving a product from a local sorting point or warehouse to the buyer (door, pick-up point or postamat). This is where customer expectations are formed and where the seller's logistics margin often disappears.

How the last mile works — stages and participants

Last-mile processes are standard, but in practice they vary depending on the order fulfilment model (seller's own delivery, marketplace logistics, or external courier services).

• Order handover: the item is prepared, packed and handed over to a courier or to a local sorting point.
• Sorting and route planning: grouping parcels by district and determining delivery sequence.
• Transportation: movement within the city or region; in Kazakhstan this often involves intercity runs with further sorting in regional centers.
• Delivery to pick-up point or door: handing over to the buyer, confirmed by signature, photo or electronic confirmation in the app.
• Handling returns and failed attempts: reattempt, send to a return point, return to sender.

Participants: seller, sorting operator (often the marketplace's logistics partner), courier, pick-up point, buyer. Within Kaspi the seller can use own delivery, Kaspi logistics (including FBS/fulfillment connection) or third-party couriers.

Why the last mile is critical for a seller on Kaspi.kz

The last mile affects three key metrics of commercial success:

• Order conversion. Buyers take into account delivery with guaranteed timeframes and low price when choosing a product. Express delivery increases conversion by 5–15% for low-priced items, according to seller experience.
• Sale cost. In logistics the last mile can account for 30–50% of the total logistics cost. For light items this percentage is higher; for heavy items it is lower as a share, but the absolute amount grows.
• Reputation and returns. Last-mile issues — damage, delays, incorrect contents — directly increase cancellation and return rates; returns reduce gross margin by 5–20% depending on category.

Example calculation. Product price 10 000 KZT, cost price 6 000 KZT, Kaspi commission assumed 8% (800 KZT), packaging 100 KZT, last mile 1 000 KZT. Gross profit = 10 000 − 6 000 − 800 − 100 − 1 000 = 2 100 KZT (21%). If the last mile rises to 1 500 KZT, gross profit becomes 1 600 KZT (16%), which noticeably reduces margin and may make the SKU non-competitive if price increases are not acceptable to buyers.

Typical problems of Kaspi sellers and real examples

Common issues we observe:

• Poor address data. Incorrect or incomplete addresses lead to failed attempts and additional mileage.
• Non-standard packaging. Oversized or under-protected parcels increase damage and mis-sorting risk.
• Local coverage gaps. Some couriers do not cover remote districts or require extra fees for distant zones.
• Mismatch of SLA and operational capacity. Offering express delivery without enough fleet or proper routing causes delays and complaints.

Real example: a seller of small electronics offered low-price delivery but used generic packaging. During winter several customers reported moisture damage, return rate jumped from 3% to 9%, and the seller's gross margin dropped by more than 10% after handling returns and refunds.

Practical tips to reduce cost and improve last-mile quality

• Hybrid delivery model. Combine postamats for dense urban areas and couriers for remote districts. Postamats lower per-order cost and reduce failed attempts.
• Pack and standardize. Standardize box sizes and packaging materials per SKU groups to reduce dimensional weight and sorting errors.
• Optimize routing. Use route-planning software to cluster deliveries and minimize empty runs.
• Negotiate SLAs. Use forecasted volumes to negotiate rates and service levels with carriers — volume guarantees often lower tariffs.
• Improve buyer communication. Send pre-delivery SMS or messenger notifications with delivery windows and track links to reduce missed deliveries.
• Pilot and scale. Run pilots for selected SKUs and districts to validate real costs and quality before full rollout.

How to calculate and which metrics to track

Key metrics to monitor:

• Average delivery time within SLA.
• On-time delivery rate (OTD) — share of deliveries completed within promised window.
• Failed-attempt rate and reasons for failures.
• Return rate and cost per return.
• Average delivery cost per order.
• Customer feedback and claims related to damage or missing items.

Combine financial calculations (cost per order, margin impact) with operational KPIs to prioritize fixes that give the biggest profit or conversion uplift.

Tools and integrations — what to use

Recommended integrations for efficient last-mile management:

• Kaspi API integration for automatic status updates and tracking synchronization with orders.
• TMS (Transportation Management System) for route planning and fleet management.
• WMS (Warehouse Management System) to standardize packing and outbound processes.
• Notification channel (SMS/messengers) to inform buyers about delivery windows and changes.
• Business intelligence (BI) for analyzing KPIs by district, courier and SKU.

These tools reduce manual work, improve transparency and speed up reaction to deviations.

Conclusion

The last mile is where customer experience and seller profitability meet. Small changes — better packaging, smarter routing, clear buyer communication and the right mix of delivery channels — can significantly lower costs, improve conversion and reduce returns. For Kaspi sellers, a data-driven approach and testing different fulfilment models (own delivery, Kaspi logistics, third-party couriers) is the fastest path to an optimal last-mile solution.