In today’s fast-paced world of online shopping, convenience is king. It’s enough to look at the rise of parcel locker networks and the increasing popularity of out-of-home (OOH) delivery options across Europe to understand that consumers are craving more flexibility when it comes to receiving their packages.
In fact, as parcel locker networks continue to expand their reach, offering secure and accessible delivery options, it’s unsurprising that an increasing number of consumers are choosing to skip the doorstep delivery dance altogether. After all, why wait around for a delivery window when you can stop by a nearby locker on your way home from the gym?
However, with the rise in OOH delivery, one question arises – what does this shift toward OOH delivery mean for the e-commerce landscape as a whole?
Is OOH delivery becoming the norm?
To be able to assess the future of OOH delivery, it’s important to understand the shift that led to this trend. The growth of OOH delivery can be attributed, in part, to convenience. From self-service scans at supermarkets to delivery orders, consumers like to have the power in their own hands. In the UK, for example, 76% of consumers express the desire to select the exact time frame for their delivery. This demonstrates a growing trend in which customers want more control over the delivery process – that is, the freedom to choose how, when and where they receive their order.
As consumers increasingly prefer self-service options, OOH delivery fits right into the trend, offering flexibility and control over the delivery process. Customers can ultimately retrieve a package from a parcel locker at any time that suits them, and as a result, this also virtually eliminates the chances of delivery staff showing up at a closed door.
Another important factor driving this shift is operational efficiency. Given that businesses lose billions of dollars annually due to failed deliveries, this shift caters to the flexible lifestyles of consumers while also enabling companies to optimize their logistics operations and enhance workflow efficiency. In fact, locker walls can hold 25 to 250 parcels, depending on the size, so a single delivery person can deliver hundreds of orders in a single trip.
Therefore, not only is OOH delivery good for the wallet, but it also has the potential to play a crucial role in sustainability efforts within the logistics industry. Think about it: delivering multiple packages to separate addresses requires more time and resources compared to dropping off all 50 parcels at a single collection point. At the same time, reducing the number of trips to individual addresses results in fewer vehicles on the road, which in turn lowers CO2 emissions. It’s convenient, cost-effective and eco-friendly – a win-win for everyone involved!
Increasing the adoption of OOH delivery
As OOH delivery gains traction, its future appears promising. However, it’s important to recognize that while its popularity is increasing, it may not be the standard way of receiving packages for all consumers yet.
So, how can its adoption be increased?
Having OOH delivery available as a standard option at the time of checkout is an essential component. For instance, by integrating this choice into the checkout flow, businesses can encourage more customers to choose this convenient and effective option. Implementing proper tracking updates here is a necessity, not an option. It’s not just about ensuring an efficient and smooth delivery process by providing real-time updates to customers but also about sending reminders about OOH delivery as an alternative option, particularly when home delivery is scheduled. These reminders can reinforce the benefits of OOH delivery and encourage its adoption.
In fact, the future of OOH delivery may involve leveraging data-driven insights to optimize the delivery experience further. Let’s take data-driven checkouts as an example. Potentially, these could analyze factors such as delivery speed or location and recommend OOH delivery over home delivery if it’s faster in a particular era. Then, if previous order behavior data is utilized, consumers will benefit from personalized checkout experiences where the preferred delivery option is suggested based on individual preferences.
Can convenience and efficiency coexist?
Before, convenience and efficiency might have seemed like complete opposites. However, with the correct implementation of OOH delivery, not only can these two coexist, but they can also offer peace of mind for both senders and recipients.
For consumers, OOH delivery is a game-changer. Instead of stressing about missed deliveries or waiting around for the doorbell to ring, customers can grab their packages whenever it suits them best – whether it’s on their way back from home or while running errands during the weekend. Concurrently, businesses also benefit from this, as it streamlines and makes the delivery process more cost effective. Ultimately, OOH delivery demonstrates not only how seamlessly convenience and efficiency can coexist, but also how the e-commerce sector has adapted to a constantly changing world.
Read more about the latest parcel locker developments on the market in this exclusive feature in the December 2023 issue of Parcel and Postal Technology International.
