CarParts.com revs up in-house last-mile delivery for cost, speed benefits

The cost savings opportunity will be “substantial” as the company aims to deliver 300,000 packages a year via its internal network, per CEO David Meniane.

The economics of an in-house delivery network are compelling for CarParts.com, given the cost and speed benefits, Meniane said on the October call. The cost savings opportunity will be "substantial" as the company scales the capability to 300,000 packages delivered, he added.

"Every package we route through our own network rather than a national carrier is a package where we control the cost, the timing and the customer experience," Meniane said.

CarParts.com's push to trim delivery costs in an era of fast-rising shipping rates is already benefiting its bottom line. CarParts.com’s Q3 gross margin increased about 30 basis point year over year, driven primarily by lower freight rates spurred by the company's last-mile initiatives and carrier diversification, interim CFO Mark DiSiena said.

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