The economy of the Kingdom of Saudi Arabia is the fastest-growing among the G20 group, and the Kingdom ranks eighth globally among the top 10 fastest-growing economies in e-commerce (according to the United Nations Conference on Trade and Development, UNCTAD). Projections suggest that the annual compound growth rate for e-commerce will reach 15% between 2020 and 2025, with total revenues of about 260 billion riyals by 2025. This comes as part of the pillars of the Kingdom's Vision 2030 to build a thriving economy, where the non-oil GDP value reached 1,889 billion riyals by the end of 2023, with a growth rate of 4.7% from 2022.

These numbers and statistics are motivating for companies operating in the logistics sector in general and last-mile service companies in particular, to meet the demands of store owners and focus on digital transformation and automation of operations and services to suit the nature of the service provided to the end customer.

Key Elements of Digital Transformation in Last-Mile Services:

1. Automation and Technical Integration:

Maximizing the use of high-Tech and using integratiable systems with platforms, e-commerce stores, and accounting systems saves time and effort in data entry and processing. This also includes smart warehouse technologies like the use of robots for handling and sorting, and the development of tracking and automatic route updates in delivery applications.

2. Customer Experience:

The importance of digital transformation in customer service has a significant impact on raising service evaluation levels and ensures repeat delivery experiences. Technologies can be utilized for order status tracking and sending Auto-notifications, in addition to using AI technologies for support and answering customer inquiries.

2. Customer Experience:

The importance of digital transformation in customer service has a significant impact on raising service evaluation levels and ensures repeat delivery experiences. Technologies can be utilized for order status tracking and sending Auto-notifications, in addition to using AI technologies for support and answering customer inquiries.

3. Data Analysis and Decision-Making:

Using appropriate analytical tools to analyze and manage data positively impacts operational efficiency, productivity, cost reduction, and the quality of inventory management and market trend forecasting. This aids company management in risk analysis and horizontal and vertical expansion plans in providing logistics services.

4. Sustainability:

Digital transformation supports route optimization in delivery operations, contributing to sustainability by reducing fuel consumption and carbon emissions. The use of electric vehicles equipped with pathfinding technology and drones for delivering lightweight shipments are applicable methods in delivery operations that enhance sustainability and the green economy.

Suggested Criteria for E-Commerce Stores When Choosing Shipping Agents and Delivery Companies:

1. Technology and Innovation:

Choosing a delivery company that uses modern technologies in delivery solutions is one of the most significant features that enhance efficiency and ensure store customer satisfaction through the reliability provided by shipment tracking systems, order status updates, and notifications confirming receipt.

2. Reputation and Reliability:

Reliability is one of the most crucial criteria for selecting delivery companies. Customer reviews and feedback about the service quality provided by delivery companies can be monitored.

3. Scalability:

Given the expected growth rates in e-commerce, stores should select delivery companies that allow scalability as business grows and can handle increased order volumes without affecting delivery quality.

4. Flexibility:

Multiplicity of services and providing flexible delivery options are key features that store owners look for (Cool and Dry delivery), fast and scheduled delivery, prepaid or COD.

5. Cost:

Operating expenses are among the most important factors in pricing services, and quality is also a significant factor in e-commerce. Store owners should seek delivery companies that balance competitive prices with delivery quality and efficiency.

6. Customer Service:

Prompt response to customer inquiries and resolving customer complaints are among the most important factors affecting customer experience and enhancing store business growth and order volume increase.

By considering these criteria, store owners can choose shipping agents and delivery companies that meet the diverse and increasing needs of their customers, contributing effectively to increased business growth consistent with the expected growth in e-commerce in KSA.