5 Common Delivery Challenges Small Businesses Face (and How to Overcome Them)

Rising delivery costs, timing issues, maintaining product quality, unsnarling communication issues, and managing customer complaints are challenges for any delivery business. The good news is this: If you encounter these issues, it is not a sign that you are mismanaging your delivery business. The even better news? We’ve compiled the strategies you need to meet any challenge, turning difficulties into opportunities to build stronger systems and more meaningful customer relationships. 

Controlling Rising Delivery Costs

Delivery services have unavoidable costs. From insurance premiums to fuel, packaging, and delivery management software, a successful delivery business has many calls on its profits. No matter where you spend your money, there are ways to control these common costs. 

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• Fuel: Your vehicles need fuel, whether you pay for it out of pocket for a fleet you own, or reimburse drivers for fuel costs, you’re spending money. Shifting to hybrid or electric vehicles for your fleet can reduce fuel costs by 20% or more. If your drivers use their own vehicles, route-optimization software will reduce the miles they travel, thereby reducing your reimbursement costs. 
• Labor: Labor costs can be the wages, benefits, and payroll taxes you pay for a team of staff drivers, or the delivery fees you pay to a third-party platform for using its drivers. Scheduling software that optimizes team schedules ensures you don’t over or under schedule drivers. Shifting from a commission-based model (where fees can be unpredictable) to a flat fee per delivery can help offset third-party delivery costs. 
• Vehicle insurance: Train your drivers in local safety standards, have your vehicles inspected and maintained at regular intervals, and provide your insurer with proof of these steps. Also, help your team avoid accidents while on your clock. 
• Vehicle maintenance: Schedule regular vehicle checks to ensure your fleet is in top working order. Stay on top of oil changes and regular maintenance so you can fix issues when they are small and prevent them becoming massive, costly repairs. 
• Packaging: Buy packaging in bulk, and rely on packaging that stores well. Know your product line or menu well, so you avoid buying packaging in sizes you don’t need. 
• Customer refunds and chargebacks: whether you manage payments in-house or rely on a third-party platform to manage your delivery, customer complaints generally result in a discount or refund. Audit your third-party statements and dispute any refunds or discounts you disagree with. Internal data from third-party monitoring software Voosh found that merely monitoring and disputing refunds from third-party platforms saved their clients up to $500,000. 
• Software:  Look for software that offers free trials or low cost baseline subscriptions. Avoid long term contracts if possible. Get quotes from multiple providers to negotiate lower rates with your preferred platforms. 

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By saving money where you can, you’ll have the funds available to spend it where it makes the most sense. Then you’ll be truly running your business rather than letting your business run you. 

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Looking for a quick win? Optimize routes, reduce labor, and save on software costs in one move by upgrading your operation with Shipday. With a free baseline subscription and no long term contracts, this software streamlines your delivery system from day one. 

Managing Timing Issues

Scheduling delivery and meeting that schedule reduces errors, ensures your product arrives in peak condition, and saves you money in reduced customer complaints. Late deliveries or deliveries that arrive at unexpected times may miss the customer completely, resulting in wasted product and a dreaded refund request. When that happens, you’re also out all the costs for delivering the product, too. So the effects of poor planning, inability to handle delivery surges, or route through traffic can really hobble your delivery business. 

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Here’s how to handle the most common on-time delivery challenges: 

• Poor planning: Route optimization software can reduce travel distance by 10-15%, resulting in significant time (and cost) savings. Planning tools that consider historical data to predict delivery times more accurately boost your accuracy even more. Streamline product packaging processes to reduce downtime in your location and get packages out the door faster. 
• Surge in delivery requests: Opt into on-demand driver programs like DoorDash Drive On-demand to hail third-party drivers to supplement your in-house team.  Spread out requests by offering incentives for customers to choose delivery windows during slower periods, helping balance driver workload throughout the day.
• Heavy traffic: Advanced route optimization algorithms take typical traffic patterns into account when estimating travel times, helping drivers avoid rush-hour traffic and busy intersections. Research shows businesses utilizing routing software can save up to 30% on fuel costs. Give drivers alternative routes for high-traffic periods and use real-time navigation apps that provide traffic updates and suggest faster alternatives as conditions change.

Looking for a quick win? Set alerts in your delivery management system to flag deliveries that have fallen behind schedule. This gives you time to contact customers proactively about delays, which can significantly increase customer satisfaction, even when deliveries are late.

Maintaining product quality

Nothing frustrates customers more than receiving damaged goods or lukewarm food. For restaurants especially, maintaining temperature and presentation during transit can be particularly challenging. These strategies help ensure your good are delivered in top consition. 

• Use delivery-optimized food packaging: In a US Foods survey of delivery drivers, one in four drivers admitted to eating delivery food before it reached the customer's home. Invest in tamper-evident packaging to ensure food safety and boost customer confidence. For restaurants, items like insulated bags, vented containers for fried foods, and separate compartments for hot and cold items give your food the best chance at maintaining texture and temperature. 
• Right-size product packaging: Non-food items benefit from being packed in boxes that prevent movement. Size your delivery packaging to your products, or fill empty space with buffer material to reduce the potential for breakage. 
• Edit your delivery offerings: Some items simply don't travel well, so consider creating a delivery-specific menu or product list that focuses on items that can stand up to a long drive. 
• Quality control checkpoints: Implement a final inspection before orders leave your premises and train your staff drivers to verify the product's condition upon delivery.

Test drive your products: Test how your most popular delivery items perform by ordering them yourself or having friends or family members do a "mystery shop" delivery. Take note of what works and what needs improvement from a customer's perspective.

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Communicate clearly

Your team needs to be on the same page about what products are ready for delivery, where deliveries are going, and when they are expected. Your customers crave the same attention; they want to know when their order will arrive, and they want to track it in real time. 

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Keeping everyone in the loop can be a real challenge. Here are some solutions worth trying: 

• Integrated delivery management platforms: Automated delivery notifications can significantly reduce Where- Is-My-Order (also known as WISMO) calls. Systems like Shipday connect your point-of-sale, order displays, and driver apps to ensure everyone has the same information, and you have the real-time data to help you make decisions. 
• Automated customer updates: Set up automatic text or email notifications at key points (order received, preparation started, out for delivery, delivered) to keep customers informed. Studies show that order tracking is a major factor for around 70% of consumers when they place online orders. 
• Driver communication tools: Many delivery management platforms include internal messaging tools that allow drivers to report issues in real time without the need to make phone calls while driving. Real time driver tracking further decreases the need for phone call check-ins. 

Need a quick win? Create a simple code system to identify common delivery issues so drivers can quickly report common problems (parking difficulties, customers not home, etc.) without lengthy explanations.

Handle customer complaints and reviews

Even with the best systems in place, things occasionally go wrong. If your business is busy, the potential for errors can be even higher, making the potential damage to your reputation even more grave.  How you handle negative customer experiences will determine whether they become reputation-damaging incidents or opportunities to showcase your customer service.

• Identify issues before they start: Monitor your delivery metrics to spot potential problems before they generate complaints. If you notice a delivery running late, contact the customer before they contact you. Delivery management software shows your delivery operation at a glance, which can help immensely. 
• Empower customer-facing staff: Give your employees who directly communicate with customers the authority to resolve common issues on the spot without manager approval. For example, authorize them to offer a preset discount or predetermined free item for their next order. 
• Review management system: When customers read online reviews, they also read your company's responses to them. There are many automated tools to help you see customer reviews as they are posted and create a prompt response. Tools like Shipday, in fact, include customer feedback modules that let you prompt for direct feedback, then post positive reviews directly to your Google review page. And positive Google reviews can actively boost your bottom line. 

Need a quick win? Create a simple "service recovery" menu that lists common customer issues and appropriate response options. This helps everyone on your team resolve issues when they arise and ensures consistent, fair resolution across all complaints.

Putting it all together

Remember that delivery excellence is a journey, not a destination. By continuously refining your delivery system based on data and customer feedback, you’ll grow your sales and reputation. Start by considering your most impactful pain point; what delivery challenge is currently costing your business the most? Start there, implement one of the solutions above, and watch how quickly small changes can lead to significant improvements in your bottom line and customer satisfaction.

And if you need a quick win? See how Shipday can help reduce delivery costs, solve scheduling issues, streamline communication, and manage customer complaints. The baseline subscription is free, and with no long-term contract, you can start risk-free and update your system as your business grows.

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