There’s a universally familiar frustration in online shopping; the “missed package.”
Whether it’s left on a doorstep, returned to the sorting facility, or – worst of all – lost in transit, failed deliveries are a significant source of irritation. Imagine a customer who finally carved out time from a hectic schedule to shop online, only to miss the delivery and embark on an endless loop of tracking down the parcel. For modern consumers, that hassle simply doesn’t fit into their busy lives, and many are turning to parcel lockers as a solution.
For retailers, this shift in consumer behaviour presents both a challenge and an opportunity. As customer expectations evolve, savvy retailers are looking to out-of-home (OOH) delivery options to capture this growing demand. And with 58% of B2C package deliveries (according to the Last Mile Experts’ Out of Home Delivery in Europe report) taking the form of out-of-home delivery options like parcel lockers, offering this convenience could make all the difference in closing sales and building loyalty.
Convenience-driven demand: why the concept works
Today’s shoppers aren’t willing to compromise on convenience. With lives that are busier and more mobile than ever, they demand flexibility in how, when, and where their purchases arrive. According to YouGov research, 45% of consumers say they expect to use OOH delivery options always, often or sometimes, avoiding the wait and frustration that comes with a failed doorstep delivery.
Consider the challenges of a nurse working night shifts or a busy professional juggling their work and social life. They simply aren’t home to receive packages or access parcel shops during the day. Parcel lockers, that are accessible 24/7 (unlike parcel shops), allow these customers to pick up orders on their schedule, transforming delivery into a manageable, stress-free experience.
With 71% of customers saying they’d opt for out-of-home delivery if it meant significantly lower costs than home delivery (according to Sendcloud data), the appeal of OOH goes beyond convenience alone. This dual benefit of affordability and flexibility is changing the way customers think about deliveries and influencing their purchase decisions.
Retaining sales through preferred delivery options
For retailers, there’s huge benefits to be gained from expanding the options available to customers. In fact, diversifying delivery options has the potential to boost sales. Sendcloud reports that 44% of European customers abandon an online order if they don’t see their chosen shipping option. For brands, providing a range of delivery choices – including OOH – at checkout is an essential way to reduce cart abandonment and capture sales that might otherwise be lost.
Parcel lockers and service points are becoming established as credible, cost-effective alternatives to doorstep delivery. Retailers that make these options available to customers aren’t only streamlining logistics, but are also actively enhancing the customer experience, giving them control over their deliveries in a way that builds loyalty and encourages repeat purchases.
Driving sustainability and affordability
Beyond convenience, OOH delivery supports a broader sustainability agenda that appeals to the modern consumer. Parcel lockers and service points significantly reduce the number of repeat trips by delivery drivers, lowering the carbon footprint associated with multiple delivery attempts. InPost’s 2022 research found that 86% fewer couriers are required by parcel lockers per 1,000 lockers, compared to home delivery. Given that research from The Hellenic Institute of Transport found that 20-30% of a city’s carbon emissions come from the last mile, it’s clear to see why OOH can make a marked impact on sustainability goals.
Building customer loyalty through a better delivery experience
For eCommerce retailers, low-cost shipping might drive conversions, but it’s the quality of the delivery experience that keeps customers coming back. In the age of personalisation, flexibility is essential.
This demand for adaptable delivery has spurred a surge in Automated Parcel Machines (APMs), with their numbers growing 29% across Europe in 2023 alone, according to a report from Paracel and Postal Technology International. APMs, along with OOH options more broadly, allow customers to exert control over the delivery process, enhancing their experience and reducing the chance of a failed delivery.
Meeting the future of delivery demand
Retailers striving to keep up with the pace of eCommerce innovation are finding that adapting to shifting consumer preferences – especially as they pertain to delivery – is a must. For example, 2024 research from InPost and Retail Economics found that 71% of Gen Z have used a parcel locker, and that 73% of under 35s prefer parcel lockers over parcel shops.
As McKinsey notes, “the retail industry has seen as much disruption in the last five years as it did in the previous 25.” For online brands, staying competitive in this climate means recognising that doorstep delivery is no longer the “holy grail” of fulfilment.
Today, OOH delivery presents a compelling option for cost-conscious, convenience-driven consumers, especially those seeking flexibility and sustainability. Retailers that act now to incorporate these solutions can expect not only improved customer satisfaction but also a more resilient, adaptable fulfilment strategy. And, for many shoppers, this choice isn’t a luxury but an expectation. For retailers, meeting that expectation could be the difference between a missed sale and a loyal customer.
For more information on InPost’s out-of-home parcel delivery solution, get in touch today.
