Last-mile dynamics in e-commerce: exploring variables impacting adoption, frequency, and returns

E-commerce has rapidly grown, especially during the COVID-19 pandemic, impacting consumer behaviour. The use of Business-to-consumer (B2C) e-commerce to purchase physical products on Urban Freight Transport (UFT) has impacted people’s mobility habits. In this context, the purpose of this study is to explore the key variables (sociodemographic characteristics, mobility habits and psychological preferences) that determine individuals’ B2C e-commerce patterns. In particular, we explore the adoption, frequency, and return behaviour of e-commerce to purchase physical products, based on the information collected from a survey campaign in the metropolitan area of Madrid (Spain). The study adopts a Generalized Structural Equation Model (GSEM) to explore the role played by multiple explanatory factors. The study reveals that some variables influence both the adoption and frequency of e-commerce use. Young, highly educated individuals with higher incomes, particularly those familiar with emerging technologies, are more likely to adopt e-commerce and use it more frequently. In terms of return of purchases, the findings suggest that individuals over 50 are less inclined to return. However, higher education, full-time employment, and access to premium delivery services, are positively associated with a higher propensity to return products purchased via e-commerce. Residential location also plays a role in explaining return behaviours. Lastly, the study indicates a significant positive relationship between the frequency of e-commerce and the propensity to adopt return practices.