What are Parcel Lockers and How Do They Work?
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What are Parcel Lockers and How Do They Work?
Parcel lockers have been around for decades, but they gained much popularity during the COVID-19 pandemic. Given the increase in online buying, parcel lockers provide a convenient, contactless alternative for customers to collect items.
According to research, half of UK consumers are now using delivery lockers for online purchases, rising to 71% for Gen Zs and 68% for Millennials.
The parcel locker reduces reliance on face-to-face contact with others. It eliminates the likelihood of encountering people who may steal packages, helping to reduce the amount of fraud on pick-up.
What is a Parcel Locker?
Parcel lockers, also known as self-service parcel terminal or automated parcel machine is a secure storage unit where persons can withdraw their packages without having to queue at a desk or interact with staff. Typically, lockers are located at public places – shopping malls, grocery stores, and transportation hubs.
More customers are seeking self-service collections and retailers are beginning to embrace that although there are no human contacts, the online nature and convenience of the service allows them to collect more high-quality NPS.
How Do Parcel Lockers Work?
- Package arrives in-store: The package arrives in store and is provisioned to the locker via a member of staff
- Notification: The customer receives a notification that the item is ready and arrives in store to pick upThe lockers’ address is specified with the shipping carrier at the time of ordering. A shipping label is generated by the carrier itself, with a unique code assigned to the particular locker.
- Pick-up: Via a browser on their mobile phone, the customer states that they are in-store and next to the locker, then the locker opens and they retrieve their items.
- Upsell or NPS: On collection, you have the opportunity to advertise or gain feedback from the customer
- Transaction complete: The customer has successfully collected their package and your system is updated that the transaction is complete.
Benefits of Parcel Lockers
Here are a few benefits of smart parcel lockers that make them better than the traditional lockers:
1) Convenience:
One of the most noticeable advantages of parcel lockers is that they are extremely convenient for the reception of parcels, especially for those individuals who are often away from their houses or have unusual schedules. There is no need to wait at home for deliveries or collude with neighbours or building staff to collect any deliveries, as packages can be directly sent to a locker near the user’s accommodation. This would prove very helpful if one has late working hours or for those who have an unusual schedule for travel.
2) Security:
One of the major advantages of applying parcel lockers is additional security in the field of parcel delivery. If the parcel is delivered into a locker, it falls into an individual, locked compartment. This range of security features reduces chances of tampering or theft and therefore offers reassurance for both retailers and customers.
3) Flexibility:
Parcel lockers give you the flexibility that traditional delivery rarely offers. Rather than giving you a brief window within which you should be available to receive the parcel, you get to pick it up at your convenience. Most locker systems are available 24/7, and thus, you can pick up your parcel early in the morning, late into the night, or whenever the time is right for you.
4) Reduced Theft Risk:
A growing problem in many residential regions, especially in urban or even suburban settings, is parcel theft, also referred to as “porch piracy”. Smart Parcel lockers can prove to be very effective in eliminating the possibility of thefts since parcels do not have to be left at unattended doorsteps or unsecured mailrooms. Since packages are kept in a secure location and are only taken by the recipient at the appropriate time, it becomes extremely difficult for thieves to intercept their packages.
5) Cross-Selling Opportunities:
Parcel locker locations can also serve as opportunities for cross-selling and upselling. By strategically placing complementary products or services near the lockers, businesses can attract customers and increase their revenue. For example, a parcel locker located in a grocery store might offer a selection of snacks or beverages for purchase.
Parcel Lockers with Kiosks vs. eLocker
Apart from the ones mentioned above, there are traditional types of parcel locker systems as well that use kiosks. A system that uses a kiosk has one point of failure, i.e., customers line up to use the kiosk to retrieve their package.
However, eLockers replace the need for kiosks by allowing customers to access packages through smartphones. Thanks to being able to collect via browser, you can collect more and higher-quality NPS.
Conclusion
Multiple organisations and industries now use parcel lockers to keep their valuable packages safe and accessible. With contactless delivery as an additional feature, industries like healthcare, automobile, retail, etc can benefit a lot from it.
If you are looking for high-quality smart parcel lockers for your organisational or residential needs, eLocker has got you covered.
Contact us now for more information.
This post originally appeared on elocker.com, and we republished it with permission from the author.
