Online retailing grew tremendously in the past years. Accordingly, e-retailers have optimized and adapted their online stores and processes based on the customer needs. However, logistics particularly last mile delivery in ordering process has not been given enough attention by the e-retailers. The companies continued to offer one or two logistics provider options for their customers. This study shows that the choice of a last mile logistics provider has to be done carefully by the companies since it has a big impact on the customer behavior and purchase decision. By conducting two experimental scenario studies, we proved that offering different last mile logistics providers will decrease abandonment in shopping process and increase willingness to pay when the mostly preferred option is given to the customers. This study has practical implications for e-retailers while designing effective logistics provider options to decrease customer abandonment and increase the customer conversion rates.

Eda joined the KLU as a Ph.D. candidate in September 2019 under the supervision of Prof. Dr. Jan Becker and Prof. Dr. Christian Barrot. Prior joining to KLU, she completed her Master’s degree in Production Management and Marketing at Marmara University in 2018, and her Bachelor’s degree in Transportation and Logistics at Istanbul University in 2016. In her Master’s thesis, she studied the relationship between owned and earned media activities of firms, trust and consumer loyalty constructs. Starting with her Master’s degree, she worked as a research assistant at Istanbul Gelisim University, Department of Logistics for three years.