The distribution of goods plays a major role in enabling economic and social activities in cities. Especially with the rise of e-commerce shopping, an increasing number of people order products online and have them delivered at home. Nowadays, this B2C distribution of parcels accounts for 56% of all shipments in e-commerce [1] and, thus, B2C e-commerce has been identified as a major challenge in the urban logistics literature [2–۶]. The growth in parcel transportation is accompanied by an increase in externalities like emissions, which affect the quality of urban life in a negative way. This trade-off between the need to distribute goods and the liveability of cities can be analysed from the perspective of different stakeholders. From the perspective of a logistic service provider (LSP), there is a growing pressure from the e-commerce sector to keep prices for shipping and handling as low as possible. This competition for lower prices in the last-mile delivery has pushed LSPs to cut their operational costs to the minimum. In other words, the last mile delivery of parcels is a purely cost-driven business which discourages the development of more sustainable distribution solutions [7]. Therefore, standard deliveries are still vastly based on traditional distribution networks, using vehicles such as diesel vans instead of eco-friendly alternatives. In contrast, local authorities and inhabitants strive for cities with a high quality of life, including efficient transportation and traffic systems without too much congestion, noise and emissions. These negative effects of distribution in urban areas are expressed by external cost metrics. In increasingly complex cities, external costs can only be minimised by promoting distribution systems that are sustainable and efficient. Thus, there is a clash of interests between different stakeholders when it comes to today’s parcel distribution systems. In order to compromise and put sustainable and efficient delivery solutions into practice, stakeholders need to be able to compare possible options. However, there are usually no numbers available to compare the state-of-the-art with other `what-if’ scenarios, and if so, they are rough estimations at best. This situation makes it difficult to argue in favour of one delivery solution over another. In this paper, we demonstrate how this problem can be addressed with the help of a simulation approach. This approach allows us a realistic assessment of the current situation and possible alternatives. Using the city of Antwerp as a case study, we analyse the cost structure of `what-if’ scenarios for B2C parcel distribution and compare them with the current situation. In the first alternative scenario, customers can choose to pick-up their parcels from delivery points (DP) instead of being delivered at home. In the second alternative scenario, an LSP implement a delivery system via cargocarrying capable bikes. Parcels are delivered by vans to DPs in the city centre, from where they are distributed to the customers on bike routes. With this study, we aim to answer the following research question: How do different designs in urban parcel distribution affect the operational and external costs, and is there a way to minimise both and, thus, satisfy all stakeholders? This work is structured as follows. In Section 2 we introduce the basic concepts and state-of-the-art research in urban parcel distribution. In Section 3 and Section 4 we motivate and explain the design of our simulation study. The results are described in Section 5, followed by a discussion in Section 6.