Monday 13 May 2013

Eliminating the cost of the last mile: InPost lockers for online pickups

                                             Pic: one of InPost global partners, source InPost site
In the UK, InPost’s new network goes up against the existing ByBox network of parcel terminals, which are mainly used for business-to-business deliveries, and also the growing number of parcel shop networks – CollectPlus, myHermes, UPS Access Point and Local Letterbox.

According to the FT, Amazon already provides a locker delivery service for items purchased on its website while CollectPlus, a joint venture between parcel delivery business Yodel and PayPoint, delivers to more than 5,000 convenience stores, newsagents and petrol stations. Earlier this year John Lewis said it would begin offering CollectPlus to shoppers buying items from its website.

InPost UK, a subsidiary of private postal operator, launched its service two weeks ago with a network of 114 locker sites in Manchester, Leeds, Glasgow and Edinburgh among other places. The company plans to have 3,000 locker sites operational by the end of the year.

A win-win for Bricks & Mortar retailers and site-owners
Retailers can rent Inpost a site and benefit from:
  • Extra income from rent
  • Utilisation of unused sites
  • Additional revenues as a result of increased footfall
  • Increased customer satisfaction resulting from access to a new, innovative service
...with the added advantage for a retailer in not losing the 30% of space and cost of operating a 'manual' collection service instore, and perhaps a little boost for the High Street?

A final online break-through
However, the real benefit of third party operation of the collection facility has to be the elimination of the final barriers of inconvenience and cost associated with the traditional need for shoppers and retailers to coordinate a physical handover at the home, with consumers willingly absorbing the travelling cost of the final collection-mile, to pick up goods at their convenience.... 

Free 15-slide presentation here

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